Aliko Dangote, Chairman of Dangote Group, announced on Tuesday, September 3, that the price of petrol from his refinery will be set by the Federal Executive Council (FEC), led by President Bola Ahmed Tinubu.
Speaking at a briefing in Lagos, Dangote explained, “The pricing arrangement will be designed and approved by the FEC. Once it is finalized, which President Tinubu is actively working on, and after we complete our discussions with NNPC, we are ready to enter the market.”
Dangote assured that the quality of petrol from his refinery will match international standards. He also indicated that the timeline for petrol supply would be confirmed after a meeting with the NNPC, which was scheduled for either September 3 or September 4.
He stated, “Once everything is finalized, our products will start reaching the market. Our gasoline could be available at filling stations within the next 48 hours, depending on NNPC.”
Femi Otedola, Chairman of Geregu Power, praised Dangote for making petrol refining possible in Nigeria. Otedola suggested dismantling old depots and selling them as scrap, reflecting on his own experiences in the depot business. He noted, “The days of relying on foreign sources for our fuel needs are over, thanks to Aliko Dangote’s vision and determination. This marks the end for those who have profited from Nigeria’s dependence on imported fuel.”
Otedola compared the impact of Dangote’s refinery to the transformative effect of his earlier work in Nigeria’s cement industry.
In related news, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian National Petroleum Corporation (NNPC) Limited have agreed to sell crude oil to the Dangote refinery in Naira. According to NMDPRA, the refinery will supply an initial 25 million litres of petrol to the domestic market this September and increase this amount to 30 million litres per day starting in October 2024.
NMDPRA posted on its X (formerly Twitter) handle, “The agreement with NNPC allows for the sale and supply of crude oil to Dangote Refinery in local currency. The refinery will supply 25 million litres of petrol this September and will ramp up to 30 million litres daily from October 2024.”
This development comes amid ongoing petrol shortages in Nigeria, compounded by the recent revelation of a $6 billion debt by NNPC Limited.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, noted that while they have been exporting other petroleum products, the production of petrol began recently. He added, “We are ready to supply petrol to the country, but if traders do not purchase our products, we will end up exporting them.”
