Nigeria’s Dangote Begins Refining Oil Products for Local Markets

Share

A company executive and fuel marketing associations have corroborated this assertion. Nigeria stands as one of the foremost oil-producing nations globally.

However, due to the absence of a functional refinery, the entirety of its crude oil is exported for refining and subsequently re-imported into the country. The Dangote refinery aims to bridge this gap.

Devakumar Edwin, an executive at Dangote Group, verified the arrival of diesel and jet fuel shipments in the local market.

Maigandi highlighted that the association’s members oversee approximately 150,000 retail stations across Nigeria. (Credits: Temilade Adelaja)

“We have substantial quantities. Products are being evacuated both by sea and road. Ships are lining up one after another to load diesel and aviation jet fuel,” Edwin told Reuters in an interview.

“Ships load a minimum of 26 million liters, though we try to push for 37 million liters vessels, for ease of operations.”

Abubakar Maigandi, head of the Independent Petroleum Marketers Association of Nigeria, disclosed that local oil marketers had reached a consensus on diesel pricing at 1,225 naira ($0.96) per liter following a bulk purchase agreement.

Meanwhile, the Depots and Petroleum Products Marketers Association of Nigeria divulged that its members are in the process of obtaining letters of credit to procure petroleum products from Dangote.

In addition to processing domestic feedstock, the facility is designed to handle other African crudes, as well as supply from distant sources such as the US and Saudi Arabia. (Credits: Tom Saater)

“Our members are in discussions with banks, and these discussions have reached advanced stages. When we secure our letters of credit, we will commence lifting products,” remarked Femi Adewole, the association’s executive secretary.

With a refining capacity of up to 650,000 barrels per day (bpd), the $20 billion refinery is anticipated to become the largest refinery in Africa and Europe upon achieving full operational status, expected later this year.

Nate O'Hara
Nate O'Hara
Nathan is a seasoned commerce writer with a passion for unraveling the intricacies of the business world and distilling them into engaging narratives. During his academic journey, he delved deep into subjects like economics, marketing, and entrepreneurship, honing his analytical skills and developing a keen understanding of market dynamics.

Read more

Local News