The Dangote oil refinery is set to deliver 25 million litres of petrol to the Nigerian market this September, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The supply is expected to increase to 30 million litres daily starting in October 2024.
In a statement released on Tuesday, the NMDPRA revealed that an agreement had been reached between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery regarding the supply of crude oil. The deal, which allows for the purchase of crude oil in local currency, will facilitate the refinery’s operations.
“At the NMDPRA headquarters in Abuja, NNPCL reached an agreement to commence crude oil sale and supply to Dangote Refinery in local currency. The refinery is now poised to supply an initial 25 million litres of PMS into the domestic market this September, with a subsequent increase to 30 million litres daily from October 2024,” the NMDPRA stated on its official X account.
Aliko Dangote, President of the Dangote Group, officially announced that the 650,000-barrel-per-day refinery in Lagos has begun producing petrol. In a live broadcast on Tuesday, Dangote highlighted the transformative impact the refinery’s output would have on Nigeria’s energy sector.
Expressing gratitude to President Bola Tinubu for authorizing the sale of crude oil to local refineries in naira, Dangote noted that many had doubted the refinery’s ability to commence production, given the massive $20 billion investment required.
The refinery’s output is expected to meet both local demand and that of sub-Saharan Africa. It has also been reported that the NNPCL is being considered as the sole distributor of the refinery’s petrol.
