Dangote Refinery to Sell Petrol to Nigeria in Dollars, Not Naira, Executive Director Gives Reasons
- Dangote Refinery is set to begin production in October 2023, five months after Muhammadu Buhari commissioned the facility
- The refined products from the refinery would be sold in dollars, and an explanation has been provided
- The refinery, located in Lagos, is expected to help solve Nigeria's petrol importation headache
Dangote Refinery is gearing up to commence production after several delays since it was commissioned in May 2023.
Devakumar Edwin, the Group Executive of Dangote Refinery, disclosed that the facility would begin refining diesel and jet fuel by October 2023, while petrol would commence by November 2023.
Source: Facebook
Edwin, speaking in an interview with S&P Global Commodity Insights noted that the company is ready and is waiting to receive its first crude to begin refining.
He revealed that the company would begin by producing up to 370,000 barrels per day of diesel and jet fuel in October 2023 and gradually increase production to meet the 650,000 barrels per day by November 30.
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He said:
“Right now, I’m ready to receive crude. We are just waiting for the first vessel. And so, as soon as it comes in, we can start."
Dangote refinery to sell in dollars
Speaking further, Edwin revealed that oil refined in the facility would be bought in US dollars, not naira.
He defended the decision by saying that the refinery's location is in a free trade zone.
"That Nigerian oil will be purchased in US dollars, not naira as some reports had suggested, because it is located in a free zone on the outskirts of Lagos"
Edwin further noted that the facility will not only be refining Nigerian crude but also crude oil from other countries, stressing that it will not be advisable to be solely dependent on Nigerian crude.
He also revealed that the refinery can process most African crudes, apart from heavy Angolan grades, Middle Eastern Arab Light, and even US light tight oil.
“We can even take some of the Russian grades… if the global system opens up to allow us to receive [them]."
Nigerian company breaks NNPC's monopoly, imports 27 million litres of petrol
In another development, a Nigerian company has become the first independent marketer to successfully import petrol into the country.
Over the years, the Nigerian National Petroleum Company Limited (NNPCL) has been the sole importer of petroleum products.
Since the end of the subsidy regime, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has started issuing licenses to oil marketing companies.
Source: Legit.ng
