The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that the $20 billion Dangote Refinery in Lagos will begin supplying 25 million litres of fuel daily to the Nigerian market this September. The refinery’s output is set to increase to 30 million litres per day starting in October.
In a post on X (formerly Twitter), the NMDPRA confirmed that it reached an agreement with the Nigerian National Petroleum Company Limited (NNPCL) during a meeting in Abuja on Tuesday. The agreement allows for the sale and supply of crude oil to Dangote Refinery in local currency.
“The refinery is now poised to supply an initial 25 million litres of PMS into the domestic market this September, and will subsequently increase this amount to 30 million litres daily from October 2024,” the post stated.
This development follows the rollout of the refinery’s first batch of Premium Motor Spirit (PMS), commonly known as petrol, from its massive facility in Lekki, Lagos. The refinery, launched in May 2023, has been eagerly anticipated as a major player in stabilizing Nigeria’s fuel supply.
Aliko Dangote, the billionaire businessman and owner of the refinery, stated that the product will enter the market as soon as final arrangements are made with NNPCL.
“We will help to restore industry and manufacturing. We will begin real import substitution, saving foreign exchange, earning foreign exchange, which will stabilize the naira, and also help bring down inflation and the cost of living,” Dangote said.
Regarding petrol pricing from his refinery, Dangote noted that the arrangement has been designed and approved by the Federal Executive Council, led by President Bola Ahmed Tinubu.
“Once the finalization with NNPC is complete, which could be today or tomorrow, we are ready to roll into the market,” he added.
