The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that the $20 billion Dangote Refinery in Lagos will begin supplying 25 million litres of petrol daily to the Nigerian market this September. The refinery, which has a capacity of 650,000 barrels per day, is expected to increase this supply to 30 million litres daily starting in October.
In a statement shared on X (formerly Twitter), the NMDPRA confirmed that during a meeting held in Abuja on Tuesday, an agreement was reached between the regulator and the Nigerian National Petroleum Company Limited (NNPCL) to commence the sale and supply of crude oil to the 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. And will subsequently increase this amount to 30 million litres daily from October 2024,” the post read.
This development marks a significant milestone for the Dangote Refinery, which officially rolled out its first batch of Premium Motor Spirit (PMS), commonly known as petrol, from its massive facility in the Lekki area of Lagos State. The refinery was launched in May 2023, but it took over a year to commence production.
In response to the refinery’s upcoming contributions to the market, NNPCL outlets nationwide have already seen a significant rise in the pump price of petrol, with prices increasing from around N600 to over N900 per litre. This price adjustment is anticipated to stabilize once the Dangote Refinery’s products enter the market in full capacity.
Aliko Dangote, the refinery’s owner and one of Africa’s richest businessmen, expressed optimism about the impact of his refinery on the Nigerian economy. He highlighted that the refinery’s operations would not only supply the local market but also support industry and manufacturing, reduce the need for imports, and help stabilize the naira by saving and earning foreign exchange.
“As soon as we finalize with the NNPCL, our product will start going into the market,” Dangote stated. “We will help to restore industry and manufacturing. We will begin real import substitution, which is what we have, you know, saving foreign exchange, earning foreign exchange, which will stabilize the naira, and it will also help bring down inflation and cost of living.”
When asked about the pricing of petrol from his refinery, Dangote explained that the pricing arrangement is part of a broader plan designed and approved by the Federal Executive Council, led by President Bola Ahmed Tinubu. He assured that once the final details with the NNPCL are settled, the refinery’s products will be ready for distribution to the market.
“It can be today, it can be tomorrow, we are ready to roll into the market,” Dangote said, expressing readiness to begin distribution as soon as possible.
