The Federal Government and Dangote Refinery have finalized an agreement for the supply of 12 million barrels of crude oil to the refinery in October. This is part of the “Crude Oil for Naira” deal, a strategic partnership between the Dangote Group and the Nigerian government.
Aliko Dangote, CEO of Dangote Refinery, confirmed the development during an interview with Bloomberg TV in the U.S. He explained that the crude supply is part of a broader agreement aimed at enabling the refinery to process crude locally and produce petrol, diesel, and jet fuel for the domestic market.
“We are working towards a robust agreement with the federal government to ensure energy security for the country, which means no more fuel queues,” Dangote said. “The government has committed to supplying us with crude oil, and in October, they will deliver 12 million barrels—equivalent to about 390,000 barrels per day. We will refine this to produce gasoline, diesel, and aviation fuel for local consumption, with any surplus exported.”
Dangote also noted that the agreement will help bring 50-60% of currently non-operational filling stations back online, significantly improving fuel access across the country.
“The deal ensures that we sell refined products to all marketers, which will lead to the reopening of 50% to 60% of idle petrol stations. Additionally, this will reduce costs associated with having ships idling off the coasts of Lome and elsewhere. Just in demurrage savings, we are looking at over $1 billion,” Dangote added.
