The Federal Government is expected to supply 12 million barrels of crude oil to Dangote Refinery in October, the Chief Executive Officer of the company, Aliko Dangote has revealed
Dangote during an interview with Bloomberg TV on Monday in the U.S, also expressed optimism that between 50 and 60 percent of non- operational filing stations in Nigeria will start having petroleum products, following the arrangements with the Federal Government
"With the government, I think the agreement will be that when we take that crude oil, we will sell to everybody. It means that 50% or 60% of our petrol stations that have not been working or have been out of work, everybody will now be at work. It will reduce the cost of having ships floating all over Lome and other places. For demurrage alone, we will save over $1 billion,” he said
According to Dangote, the crude supply is part of an agreement with the government, enabling the refinery to process crude oil and produce petrol, diesel, and jet fuel for the Nigerian market.
He further explained that the arrangement falls under the Crude Oil for Naira deal between the Dangote Group and the government.
“The kind of agreement that we are expecting from the federal government is to have a very robust agreement while first of all, we have energy security, where there won’t be queues
The federal government will provide for us crude oil. Already, we have agreed that, for example, in October, they are going to give us 12 million barrels which is averagely about 390,000 barrels a day which will refine and sell for both gasoline, diesels and aviation fuels. And if there is any excess, we will export,” Dangote said.
He noted that it will also eliminate the need for shipping fuel across various locations, which will significantly reduce costs.
According to Dangote, this initiative will save the country approximately $1 billion in demurrage fees related to ship landing payments across the continent.
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