The Federal Government and the Dangote Refinery have signed a deal to provide 12 million barrels of crude oil to the facility in October.
The arrangement is part of the “Crude Oil for Naira” agreement, a strategic cooperation between the Dangote Group and Nigeria’s government.
Aliko Dangote, CEO of Dangote Refinery, revealed the news during an interview with Bloomberg TV in the United States.
According to him, the crude oil supply is part of an ongoing deal with the federal government that will allow the refinery to process crude domestically and manufacture gasoline, diesel, and jet fuel for the domestic market.
“We are working towards a solid agreement with the federal government that ensures energy security for the country. This means no more fuel queues,” Dangote stated. “The government has committed to providing us with crude oil, and in October, they will deliver 12 million barrels, which translates to roughly 390,000 barrels a day. We will refine this crude to produce gasoline, diesel, and aviation fuel for the local market. Any surplus will be exported.”
He noted that it will help bring 50 to 60 per cent of currently non-operational filling stations back into service, drastically improving access to fuel across the country.
“The deal with the government ensures that we sell the refined products to all marketers, which will mean the reopening of 50 per cent to 60 per cent of our petrol stations that have been idle. This will also reduce the costs tied to having ships floating off the coasts of Lome and elsewhere. In terms of demurrage alone, we are looking at saving over $1 billion,” Dangote added.
