Dangote oil refinery has initiated the supply of petroleum products like diesel and aviation jet fuel to the Nigerian domestic market. The revelation, shared by informed sources, marks a significant milestone in Nigeria’s energy landscape.
Abubakar Maigandi, Head of the Independent Petroleum Marketers Association of Nigeria, disclosed to Reuters the pricing strategy adopted by local oil marketers, fixing the rate at 1,225 naira ($0.96) per litre for diesel post-securing a bulk purchase deal, followed by standard mark-ups.
Maigandi highlighted the extensive reach of the association, boasting control over approximately 150,000 retail stations scattered across Nigeria. On a parallel note, the Depots and Petroleum Products Marketers Association of Nigeria conveyed their members’ endeavors to obtain letters of credit for procuring petroleum products directly from Dangote.
Femi Adewole, the association’s Executive Secretary, stated, “Our members are in talks with banks, nearing final stages for acquiring letters of credit to commence product procurement.”
An executive from Dangote and representatives from various fuel marketing organizations affirmed to Reuters that diesel loading from the refinery has commenced, signifying a pivotal step in Nigeria’s pursuit of energy self-sufficiency.
Devakumar Edwin, a group executive at Dangote, confirmed the initiation of diesel and jet fuel distribution in the local market, emphasizing the substantial quantities available. “Ships are queuing up for loading, aiming for vessels carrying a minimum of 26 million litres, with a preference for 37 million litres vessels for smoother operations,” Edwin elaborated to Reuters.
Located strategically near Lagos’s commercial hub, the Dangote refinery epitomizes Africa’s largest refinery endeavor, realized after several delays and spearheaded by Aliko Dangote, Africa’s wealthiest individual, with an astonishing investment of $20 billion.
The refinery’s colossal processing capacity of up to 650,000 barrels per day positions it as the largest in Africa and Europe once it attains full operational status, expected imminently. The refinery’s significance extends beyond economic realms, as it holds the potential to substantially diminish Nigeria’s reliance on imported petroleum products, a paradoxical scenario for Africa’s most populous country and leading oil producer, plagued by limited refining capabilities that the Dangote refinery aspires to rectify.
