Commodities
Nigeria to Compel Oil Firms to Sell Crude to Domestic Refineries
- Producers can sell crude in dollars or naira to refiners
- Dangote refinery may get more local crude on new rules
Storage tanks and stack towers at an oil refinery outside of Lagos, Nigeria.
Photographer: Tom Saater/BloombergThis article is for subscribers only.
Nigeria released new rules that will compel its oil producers to sell crude to domestic refineries in a bid to reverse the country’s reliance on imported refined products.
Under the regulations seen by Bloomberg News, all oil firms in the West African nation will be obliged to provide crude for domestic refiners that can’t independently source supplies locally. Producers are only entitled to export crude after meeting their domestic supply obligations, according to the Nigerian Upstream Regulatory Commission’s measures, which may see the new, giant Dangote Refinery getting more of its crude locally.