FG Offers Dangote Refinery Dollar Swap Deal
The Dangote Petroleum Refinery has been facing a foreign exchange crisis due to the naira-for-crude deal, which has led to a shortage of dollars needed to pay for crude oil.
The refinery had planned to receive about 13 million barrels of crude monthly under this arrangement but has only been getting less than 35 percent of this allocation, forcing it to rely on imports from countries like Ghana and the United States.
Despite buying crude in dollars, the refinery has been selling fuel to Nigerians in naira, plunging the company into a forex crisis estimated to be in billions of dollars.
The Federal Government has promised to make dollars available to the refinery in exchange for the petrol it sells in naira under a new arrangement known as the dollar-for-petrol deal.