FG, Dangote Refinery Finalize Agreement for 12 Million Barrels of Crude Supply in October

The Federal Government and Dangote Refinery have concluded an agreement for the delivery of 12 million barrels of crude oil to the refinery in October.

Aliko Dangote, CEO of Dangote Refinery, confirmed the deal during an interview with Bloomberg TV in the United States. He explained that this supply is part of an ongoing partnership with the federal government, aimed at ensuring domestic processing of crude oil to produce petrol, diesel, and jet fuel for the local market.

According to reports, this arrangement falls under the “Crude Oil for Naira” initiative, a strategic collaboration between Dangote Group and the Nigerian government.

“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 said.

He disclosed that the government will provide 12 million barrels of crude oil in October, translating to roughly 390,000 barrels per day. This crude will be refined to meet local fuel demands, with any surplus intended for export.

Dangote also highlighted that the deal is expected to bring 50-60% of idle petrol stations back into operation, improving access to fuel across the country.

“The agreement ensures that we sell refined products to all marketers, which will lead to the reopening of many petrol stations that have been inactive. This will also save over $1 billion in demurrage costs associated with ships stationed off the coasts of Lome and other areas,” Dangote added.