In September, the Dangote Oil Refinery is set to provide 25 million litres of petrol to the Nigerian market. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced on Tuesday that this amount will increase to 30 million litres daily starting in October.
The NMDPRA revealed that a meeting with the Nigerian National Petroleum Company Limited (NNPCL) resulted in an agreement for local crude oil supply to the Dangote Refinery, with transactions to be conducted in local currency.
According to a brief statement from the NMDPRA, “At our Abuja headquarters, an agreement was reached for NNPCL to begin supplying crude oil to Dangote Refinery in naira. The refinery is now prepared to release an initial 25 million litres of Premium Motor Spirit (PMS) into the domestic market this September, with plans to ramp up to 30 million litres daily from October 2024.”
In related news, Aliko Dangote, President of the Dangote Group, recently announced that the refinery, which boasts a 650,000-barrel per day capacity, has officially begun petrol production. During a live broadcast on Tuesday, Dangote highlighted that the refinery’s operations will significantly impact Nigeria’s energy sector.
Dangote expressed gratitude to President Bola Tinubu for endorsing the sale of crude in naira to local refineries, noting that many doubted the feasibility of the $20 billion refinery commencing production. He affirmed that the refinery is equipped to meet both local and sub-Saharan African fuel demands.
Reports indicate that the Nigerian National Petroleum Company Limited is being considered as the exclusive distributor of the refinery’s output.