In a significant development, the Federal Government and Dangote Refinery have reached an agreement to pay for crude oil supplied to the facility in local currency.

This arrangement will enable the 650,000 barrels per day refinery to receive a substantial 24 million barrels of oil throughout October and November this year.

According to a report by Bloomberg on Monday, the Dangote Refinery, located just outside Lagos, is expected to take in up to 400,000 barrels of crude daily over the next two months

This marks a transformative moment for Africa's largest oil plant in the region's import and export markets.

Last month, the Presidential Committee on the Sale of Crude Oil and Refined Products announced that NNPC Limited would begin supplying approximately 385,000 barrels of crude oil to the Dangote Refinery starting October 1, 2024.

The Federal Government confirmed: "From October 1, NNPC will commence the supply of about 385kbpd of crude oil to the Dangote Refinery, to be paid for in Naira.

"In return, the Dangote Refinery will supply PMS (premium motor spirit) and diesel of equivalent value to the domestic market, also payable in Naira."

Furthermore, the government outlined that diesel will be available for sale in Naira to any interested off-taker, while PMS will be sold exclusively to NNPC

NNPC will then distribute it to various marketers. All associated regulatory costs will also be settled in Naira.