The Dangote Refinery is set to make a significant impact on Nigeria’s energy sector by supplying 25 million litres of petrol daily to the local market starting this September. This supply volume is expected to increase to 30 million litres per day beginning October 2024.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) confirmed the development on Tuesday, following a meeting with the Nigerian National Petroleum Company Limited (NNPCL). The meeting resulted in an agreement to begin the sale and supply of crude oil to the Dangote Refinery in local currency.
In a brief statement on its X page, the NMDPRA announced: “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 Premium Motor Spirit (PMS) into the domestic market this September, with an increase to 30 million litres daily from October 2024.”
President of the Dangote Group Aliko Dangote officially announced the commencement of petrol production at the refinery during a live broadcast on Tuesday. He emphasized that this development marks a pivotal moment for Nigeria’s energy sector.
Dangote expressed his gratitude to President Bola Tinubu for endorsing the sale of crude oil in naira to local refineries, a policy he believes has made this milestone possible. He also acknowledged skepticism about the feasibility of the $20 billion refinery project, stating that its successful operation will not only meet domestic needs but also cater to demands across Sub-Saharan Africa.
With a processing capacity of 650,000 barrels per day, the Dangote Refinery is set to reshape Nigeria’s energy landscape and significantly enhance the availability of petrol in the region.
