The Federal Government and Dangote Refinery have finalized an agreement for the supply of 12 million barrels of crude oil to the refinery in October.
This arrangement is part of the “Crude Oil for Naira” deal, a strategic partnership between the Dangote Group and the Nigerian government.
Aliko Dangote, CEO of Dangote Refinery, confirmed this development in an interview in the United States.
According to Dangote, the crude oil supply is part of an ongoing agreement with the Federal Government to enable the refinery to process crude oil locally and produce petrol, diesel, and jet fuel for the domestic market.
“We are working towards a robust agreement with the Federal Government that ensures energy security for the country.
This means no more fuel shortages,” Dangote stated. “The government has committed to providing us with crude oil, and in October, they will deliver 12 million barrels, which equates to approximately 390,000 barrels per day.
We will refine this crude to produce gasoline, diesel, and aviation fuel for the local market. Any surplus will be exported.”
He also noted that this initiative would help restore 50 to 60 per cent of currently non-operational filling stations, significantly improving fuel access across the country.
“The deal with the government ensures that we sell refined products to all marketers, which will result in the reopening of 50 to 60 per cent of idle petrol stations. This will also reduce costs associated with ships idling off the coasts of Lome and other areas. In terms of demurrage alone, we expect to save over $1 billion,” Dangote added.
