The Dangote Refinery is gearing up to commence crude oil production, according to a report by S&P Global Commodity Insights. This development comes as the Nigerian oil giant continues to face difficulties in securing sufficient feedstock.
Crude production will kick off at two of the company's upstream projects located in the Niger Delta—specifically in Oil Mining Leases (OMLs) 71 and 72. Initial output is expected to be around 20,000 barrels per day (b/d), with plans to increase production further in the first quarter of 2025. According to sources from the company, the ramp-up in output is part of a broader strategy to boost production capacity.
In a related development, the Nigerian government has recently confirmed the implementation of a Naira-for-crude deal with the Dangote Refinery. Under this agreement, the Nigerian National Petroleum Company Limited (NNPCL) will supply crude oil to the refinery in exchange for Naira, a move directed by President Bola Tinubu. This arrangement is seen as part of the government's efforts to stabilize the country’s fuel supply and reduce dependence on foreign currency.
The commencement of production comes at a critical time, as the NNPCL recently raised fuel pump prices to ₦1,030 per liter in Abuja, adding pressure to the nation’s already strained fuel market.
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