Dangote Refinery has announced the commencement of supplying petroleum products to the local market, marking a significant milestone in Nigeria’s journey towards energy self-sufficiency. This development, confirmed by a company executive and fuel marketing associations, represents a crucial step in the country’s quest for energy independence.
Situated on a peninsula on the outskirts of Lagos, the Dangote refinery is Africa’s largest city and Nigeria’s commercial capital. With a refining capacity of up to 650,000 barrels per day (bpd), it is poised to become the largest refinery in Africa and Europe upon reaching full operational capacity, expected later this year.
A Dangote executive, Devakumar Edwin, confirmed the commencement of diesel and jet fuel shipments into the local market, noting substantial quantities and efficient evacuation methods. Vessels typically load a minimum of 26 million litres, with efforts to maximize efficiency by accommodating vessels carrying up to 37 million litres.
Local oil marketers, represented by the Independent Petroleum Marketers Association of Nigeria, have agreed to a price of 1,225 naira ($0.96) per litre of diesel following a bulk purchase agreement with Dangote. Abubakar Maigandi, head of the association, disclosed the extensive retail station network managed by its members across Nigeria.
Additionally, the Depots and Petroleum Products Marketers Association of Nigeria revealed ongoing efforts to secure letters of credit to procure petroleum products from Dangote. Femi Adewole, the association’s executive secretary, indicated that discussions with banks have reached advanced stages, paving the way for product lifting to commence.
The commencement of local petroleum product supply by Dangote Refinery reflects the tangible progress towards enhancing Nigeria’s energy sector infrastructure and reducing dependency on imports.
