The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) have announced on Tuesday, that the Dangote Oil Refinery is set to supply 25 million liters of petrol to the Nigerian market in September, with plans to increase this amount to 30 million liters daily starting in October 2024.
This announcement was made after a meeting with the Nigerian National Petroleum Company Limited (NNPCL) to discuss local crude supply arrangements.
The NMDPRA confirmed that the agreement reached allows for the sale and supply of crude oil to the Dangote Refinery in local currency to ease the financial pressures on the domestic market.
The refinery, which has a capacity of 650,000 barrels per day, commenced petrol production recently, marks a shift in Nigeria's energy sector, which has historically relied heavily on imported fuel.
Aliko Dangote, the President of the Dangote Group, expressed gratitude to President Bola Tinubu for facilitating the sale of crude in naira, emphasizing that many were skeptical about the refinery's potential to begin production.
He highlighted that the refinery's output would not only satisfy local demand but also cater to the needs of sub-Saharan Africa.
The NNPCL is expected to be the exclusive distributor of the petrol produced by Dangote, at this critical time when Nigeria struggles with fuel shortages and price fluctuations.
