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BUSINESS

Dangote refinery begins operation in Lagos, set to supply 25 million litres of petrol in September

September 3, 2024 • 2 min read

August 03, 2024

By Samuel Ogunsona

the Dangote refinery has officially commenced operations, with plans to supply 25 million litres of petrol to the Nigerian market this September. According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), this quantity will increase to 30 million litres daily from October 2024.

The NMDPRA announced that it had met with the Nigerian National Petroleum Company Limited (NNPCL) to agree on local crude supply to the refinery. The agreement includes the sale and supply of crude oil to Dangote Refinery in local currency.

Located in Lagos, the Dangote Refinery has been a focal point since its commissioning earlier this year.

The facility, which has a production capacity of 650,000 barrels per day, is anticipated to transform Nigeria’s oil sector by processing crude oil locally rather than relying on expensive imports.

The CEO, Aliko Dangote said the supply of petrol into Nigeria would change the country’s energy landscape.

Expressing gratitude to President Bola Tinubu for approving the sale of crude in naira to local refineries, Dangote noted that many people doubted the $20 billion refinery would ever begin petrol production.

This marks a significant step towards enhancing Nigeria’s petroleum production and reducing reliance on imports. The increased petrol supply is expected to positively impact the domestic market, potentially leading to stabilized fuel prices and reduced scarcity.