The Nigerian government has approved the exportation of crude oil, approximately 12 million barrels, to Dangote Refinery, effective October, indicating great prospects in resolving the fuel issues in Nigeria.
In an interview, Aliko Dangote, the Chief Executive Officer of Dangote Refinery, said that the supply of crude oil is an ongoing agreement with the federal government, meant to assist the refinery in processing crude oil locally to produce petrol, diesel, and jet fuel for the local market.
“This is what you call the ‘Crude Oil for Naira’ agreement, a business alliance between Dangote Group and the Nigerian authority,” Dangote said.
The refinery will have the capacity to process about 650,000 barrels of crude oil in a single day, which is anticipated to rehabilitate over 50-60% of currently non-operational petrol stations and greatly increase the fuel supply available in the country.
The initiative will also eliminate the need for transporting fuel over long distances via ships, saving Nigeria approximately $1 billion in demurrage fees.
“The government has committed to providing us with crude oil, and in October, they will give 12 million barrels of crude oil, which is about 390,000 barrels per day,” Dangote said.
