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Nigerian Govt, Dangote Reach Agreement On Crude Oil Supply For October

Published

7 months ago

Sep 24, 2024.

The Federal Government and Dangote Refinery have finalized a deal to supply 12 million barrels of crude oil to the refinery in October, as confirmed by Aliko Dangote, CEO of Dangote Refinery, during an interview with Bloomberg TV in the United States.

This crude oil supply is part of an ongoing agreement with the federal government, aimed at enabling the refinery to process crude domestically and produce petrol, diesel, and jet fuel for the Nigerian market.

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EKO HOT BLOG reports that the arrangement falls under the “Crude Oil for Naira” initiative, a strategic collaboration between the Dangote Group and the Nigerian government.

“We are securing a strong agreement with the federal government to ensure energy security for the country, which means no more fuel shortages,” Dangote stated.

He added, “The government will provide us with crude oil, and in October, they will deliver 12 million barrels, approximately 390,000 barrels per day. We will refine this crude to produce gasoline, diesel, and aviation fuel for the local market, with any surplus being exported.”

Dangote Crude Oil Supply

Dangote also highlighted that this agreement will facilitate the reopening of 50 to 60 percent of currently non-operational filling stations, significantly improving fuel availability nationwide.

“This deal ensures that we sell refined products to all marketers, leading to the reopening of a significant number of petrol stations that have been idle. Additionally, we will save over $1 billion in costs associated with demurrage and having ships anchored off the coasts of Lome and elsewhere,” Dangote added.