The Nigerian government is set to supply 12 million barrels of crude oil to the Dangote Refinery in October, marking a key milestone in the country’s oil and gas sector. Read more about the arrangement.
The Federal Government and Dangote Refinery have finalized an agreement for the provision of 12 million barrels of crude oil to the facility in October. This arrangement is part of the “Crude Oil for Naira” initiative, a strategic collaboration between the Dangote Group and the Nigerian government. Aliko Dangote, the chief executive officer of Dangote Refinery, confirmed this development during an interview with Bloomberg TV in the United States.
He indicated that the crude oil supply is integral to an ongoing agreement with the federal government, aimed at enabling the refinery to process crude domestically and produce petrol, diesel, and jet fuel for the local market. “We are striving for a robust agreement with the federal government that guarantees energy security for the nation. This will eliminate fuel queues,” Dangote remarked. “The government has pledged to supply us with crude oil, and in October, they will deliver 12 million barrels, equating to approximately 390,000 barrels per day. We will refine this crude to generate gasoline, diesel, and aviation fuel for the domestic market, with any excess available for export.”
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He emphasized that this initiative would facilitate the reopening of 50 to 60 percent of currently inactive filling stations, significantly enhancing fuel accessibility throughout the country. “The agreement with the government ensures that we distribute the refined products to all marketers, which will lead to the revival of 50 to 60 percent of our petrol stations that have been non-operational. This will also mitigate costs associated with having ships idling off the coasts of Lome and other locations. In terms of demurrage alone, we anticipate savings exceeding $1 billion,” Dangote added.
