As tensions between Dangote and oil stakeholders began to ease, the Dangote Refinery is set to receive 12 million barrels of crude oil from the Nigerian government. Aliko Dangote, the founder and Chairman, announced that an agreement had been reached between the Federal Government and Dangote Refinery for the supply of 12 million barrels of crude oil to the facility in October.
As part of the “Crude Oil for Naira” deal, a strategic partnership between the Dangote Group and the Nigerian government is an arrangement towards it.
Dangote, who also serves as the chief executive officer of Dangote Refinery, confirmed this development during an interview with Bloomberg TV in the United States.
He explained that with the federal government aimed at enabling the refinery to process crude locally, producing petrol, diesel, and jet fuel for the domestic market, the crude oil supply is part of an ongoing agreement.
“We are working towards a solid agreement with the federal government that ensures energy security for the country. This means no more fuel queues,” Dangote stated.
“The government has committed to providing us with crude oil, and in October, they will deliver 12 million barrels, which translates to roughly 390,000 barrels a day. We will refine this crude to produce gasoline, diesel, and aviation fuel for the local market. Any surplus will be exported.”
He mentioned that this agreement will help restore 50 to 60 percent of currently non-operational filling stations, significantly enhancing fuel accessibility nationwide.
“The deal with the government ensures that we sell the refined products to all marketers, which will mean the reopening of 50 per cent to 60 per cent of our petrol stations that have been idle.
“This will also reduce the costs tied to having ships floating off the coasts of Lome and elsewhere. In terms of demurrage alone, we are looking at saving over $1 billion,” Dangote included.
