The Federal Government and Dangote Refinery have reached an agreement to supply 12 million barrels of crude oil to the refinery in October. Aliko Dangote, CEO of Dangote Refinery, confirmed this during an interview with Bloomberg TV, explaining that the supply is part of the “Crude Oil for Naira” initiative, a strategic collaboration between the Dangote Group and the Nigerian government.
Under the agreement, the refinery will process the crude locally to produce petrol, diesel, and aviation fuel for Nigeria’s domestic market, while any surplus will be exported. Dangote emphasized that this partnership will help restore 50-60% of currently non-operational petrol stations, ensuring more widespread access to fuel across the country and reducing the cost of floating ships offshore, saving over $1 billion in demurrage fees.
Dangote highlighted that this deal will be crucial for Nigeria’s energy security, with the promise of no more fuel shortages. The refinery will begin refining about 390,000 barrels of crude per day starting in October.
News Editor