The Federal Government has finalized an agreement with Dangote Refinery to supply 12 million barrels of crude oil in October 2024.
This deal is part of the “Crude Oil for Naira” initiative, a strategic partnership to ensure local energy security and boost fuel availability in Nigeria.
Aliko Dangote, CEO of Dangote Refinery, confirmed this development during an interview with Bloomberg TV in the United States.
According to Dangote, the arrangement is crucial for refining crude oil locally to produce petrol, diesel, and aviation fuel, addressing domestic fuel needs.
“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 delivering 12 million barrels of crude oil in October, equating to roughly 390,000 barrels per day. We will refine this to produce gasoline, diesel, and jet fuel for the local market. Any surplus will be exported,” he added.
Dangote further emphasized that this deal would significantly improve the availability of fuel across the country by bringing back between 50 to 60 percent of currently non-operational petrol stations.
“The deal ensures that we sell the refined products to all marketers, which will mean the reopening of 50 to 60 percent of petrol stations that have been idle,” Dangote said.
He also highlighted the cost-saving benefits of the agreement, particularly in reducing demurrage expenses, with potential savings exceeding $1 billion.
“This will drastically cut down on the costs tied to having ships floating off the coasts of Lome and elsewhere,” Dangote noted.
The partnership marks a significant step toward stabilizing Nigeria’s fuel supply and reducing reliance on imported petroleum products.
