In a significant move to address Nigeria’s fuel needs, the federal government is set to deliver 12 million barrels of crude oil to the Dangote Refinery next month. This step marks a major advancement in the country’s efforts to process fuel locally and reduce reliance on fuel imports.
Aliko Dangote, CEO of Dangote Refinery, confirmed the plan in an interview with Bloomberg TV, explaining that the crude oil supply is part of a strategic partnership between the refinery and the federal government. The arrangement, known as the “Crude Oil for Naira” deal, will enable the refinery to produce petrol, diesel, and jet fuel for the local market.
“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 will provide 12 million barrels of crude oil in October, which is about 390,000 barrels a day. We will refine this crude for domestic consumption, and any surplus will be exported.”
This initiative is expected to transform Nigeria’s fuel distribution, with Dangote estimating that it will bring 50-60% of currently idle petrol stations back into operation, significantly improving fuel access nationwide. Additionally, it will reduce the country’s dependence on costly shipping practices that have led to demurrage fees for delays in unloading fuel imports. According to Dangote, the shift could save Nigeria up to $1 billion in demurrage fees.
“The government deal ensures that the refined products will be available to all marketers, allowing the reopening of many non-operational petrol stations. This will also cut down shipping costs, saving over $1 billion in demurrage,” Dangote added.
This partnership is seen as a key step towards securing energy stability and boosting the country’s refining capacity, positioning Nigeria to better meet its fuel demands.
