The Federal Government has reached an agreement with Dangote Refinery to supply 12 million barrels of crude oil to the facility in October.
This arrangement is part of the “Crude Oil for Naira” deal, a strategic partnership between the Nigerian government and the Dangote Group.
Aliko Dangote, CEO of Dangote Refinery, shared the news during an interview with Bloomberg TV in the U.S., noting that the supply is key to an ongoing agreement aimed at enabling local refining of crude oil into petrol, diesel, and jet fuel for the domestic market.
“We are working towards a comprehensive agreement with the government that ensures energy security for Nigeria, which means no more fuel shortages,” Dangote said. “In October, the government will deliver 12 million barrels of crude, approximately 390,000 barrels per day. We will refine this crude to produce fuel for the local market, with any surplus being exported.”
Dangote also highlighted that this development would help reopen 50 to 60 percent of currently non-operational filling stations, improving nationwide fuel availability.
“Our deal with the government ensures that refined products are distributed to all marketers, which will lead to the reopening of 50 to 60 percent of idle petrol stations. It will also cut down on costs associated with ships anchored off the coast, saving over $1 billion in demurrage fees,” he added.