Dangote Refinery Supplies Petroleum Products to Local Nigerian Market.
Nigeria’s Dangote oil refinery commenced supplying petroleum products to the local market on Tuesday, as confirmed by a company executive and fuel marketing associations, marking a significant milestone in the country’s pursuit of energy self-sufficiency.
Constructed at a cost of $20 billion on a peninsula near Lagos, Africa’s largest city, the refinery is the brainchild of Aliko Dangote, the wealthiest individual on the continent. Despite facing several years of delays, the project has finally come to fruition.
Capable of refining up to 650,000 barrels per day (bpd), the facility is set to become the largest refinery in Africa and Europe upon reaching full operational capacity this year or next.
Devakumar Edwin, Dangote’s group executive, confirmed the shipment of diesel and jet fuel into the local market, emphasizing significant quantities being made available. He noted that products are being transported both by sea and road, with ships lining up to load diesel and aviation jet fuel.
According to Abubakar Maigandi, head of the Independent Petroleum Marketers Association of Nigeria, local oil marketers have agreed upon a price of 1,225 naira ($0.96) per litre of diesel under a bulk purchase agreement, before applying their mark-up. The association’s members, who oversee approximately 150,000 retail stations across Nigeria, are involved in this arrangement.
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Meanwhile, the Depots and Petroleum Products Marketers Association of Nigeria revealed that its members are in the process of securing letters of credit to purchase petroleum products directly from the Dangote refinery. Femi Adewole, the association’s executive secretary, stated that advanced discussions with banks are underway, and once letters of credit are obtained, they will begin lifting products.
The Dangote refinery is hailed as a pivotal development in ending Nigeria’s dependence on imported petroleum products. Despite being Africa’s most populous nation and leading oil producer, Nigeria has long relied on fuel imports due to inadequate refining capacity.
