The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that the Dangote Refinery in Lagos, valued at $20 billion, is set to deliver 25 million litres of fuel per day to the Nigerian market this September.
The NMDPRA also revealed that the refinery, which has a capacity of 650,000 barrels per day, will increase its daily supply to 30 million litres starting in October.
In a recent post on X (formerly Twitter), the regulator shared details of a meeting held in Abuja on Tuesday between the NMDPRA and the Nigerian National Petroleum Company Limited (NNPCL).
During the meeting, an agreement was reached to commence 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 liters daily from October 2024,” the post read.
The Dangote Refinery, which was inaugurated in May 2023, has now begun producing its first batch of Premium Motor Spirit (PMS), commonly known as petrol, from its expansive facility located in Lekki, Lagos State.
As the refinery prepares to roll out its products, the pump price of petrol at NNPCL outlets across the country has risen from approximately N600 to over N900.
Aliko Dangote, the billionaire businessman and owner of the refinery, expressed that the product would be available in the market once final agreements with the NNPCL are concluded.
“As soon as we finalise with the NNPCL, our product will start going into the market.
“We will help to restore industry and manufacturing. We will begin real import substitution, which is what we have, you know, saving foreign exchange, earning foreign exchange, which will stabilise the naira, and it will also help bring down inflation and cost of living,” Dangote explained.
When asked about the pricing of petrol from his refinery, Dangote indicated that the pricing structure is part of an arrangement designed and approved by the Federal Executive Council, led by President Bola Ahmed Tinubu.
“As soon as it is finalised, which he (Tinubu) is pushing, once we finish with NNPC, it can be today, it can be tomorrow, we are ready to roll into the market,” he added.
