Dangote Refinery Secures 12 Million Barrels of Crude Oil in Strategic Deal with Nigerian Government
The Federal Government of Nigeria has entered into an agreement with the Dangote Refinery for the supply of 12 million barrels of crude oil, scheduled for delivery in October. This partnership is part of the “Crude Oil for Naira” initiative, a strategic collaboration between the Nigerian government and the Dangote Group.
Aliko Dangote, CEO of Dangote Refinery, shared details of the agreement during a recent interview with Bloomberg TV in the U.S. He explained that the deal will enable the refinery to process crude oil domestically, producing essential fuels such as petrol, diesel, and aviation fuel for the Nigerian market.
“We are finalizing a robust agreement with the federal government that aims to strengthen the nation’s energy security,” Dangote said. “The government has committed to providing us with crude, and by October, we expect to receive 12 million barrels, equivalent to approximately 390,000 barrels per day. This crude will be refined to meet the local demand for gasoline, diesel, and jet fuel, with any surplus earmarked for export.”
Dangote further highlighted that this arrangement will significantly boost the country’s fuel supply, helping to restore between 50% and 60% of currently non-operational petrol stations, thereby improving fuel access nationwide.
“The partnership ensures that the refined products will be available to all marketers, which will enable us to reopen more than half of the petrol stations that have been dormant. This will also reduce the high costs associated with vessels waiting offshore, leading to potential savings of over $1 billion in demurrage fees alone,” he added.
