The Federal Government and Dangote Refinery have sealed an agreement for the delivery of 12 million barrels of crude oil to the refinery in October.
This was confirmed by Aliko Dangote, CEO of Dangote Refinery, during an interview with Bloomberg TV in the United States.
Dangote explained that the crude oil supply is part of a broader agreement with the federal government, designed to enable the refinery to process domestic crude and produce petrol, diesel, and jet fuel for the Nigerian market.
This partnership falls under the “Crude Oil for Naira” initiative, a strategic collaboration between the Dangote Group and the Nigerian government to enhance energy security and boost local fuel production.
“We are establishing a strong agreement with the federal government to ensure energy security for the country, which will eliminate fuel shortages,” Dangote said.
“The government has pledged to supply us with crude oil, and by October, we expect a delivery of 12 million barrels, or about 390,000 barrels per day. We will refine this crude to supply gasoline, diesel, and aviation fuel to the local market, with any surplus being exported.”
He further highlighted that this arrangement would facilitate the reopening of 50% to 60% of currently inactive filling stations, significantly improving fuel availability across the nation.
“The agreement with the government ensures that we sell our refined products to all marketers, which will lead to the reactivation of many of the petrol stations that have been out of service. This will also reduce costs associated with having tankers waiting offshore, particularly in terms of demurrage, where we expect to save over $1 billion,” Dangote added.
