Nigeria’s Dangote oil refinery, the largest in Africa, has begun supplying diesel and jet fuel to the domestic market, according to a company executive and fuel marketing associations.
This marks a significant step towards the country’s goal of achieving energy independence.
Completed after several years of construction at a cost of $20 billion, the refinery sits near Lagos, Nigeria’s commercial capital.
With a capacity of 650,000 barrels per day, it will become the biggest refinery in Africa and Europe upon reaching full operation in the coming year.
“We have substantial quantities,” said Devakumar Edwin, a group executive at Dangote.
“Products are being evacuated both by sea and road. Ships are lining up to load diesel and aviation jet fuel.”
Local oil marketers have agreed on a price of 1,225 naira ($0.96) per litre for diesel purchased in bulk from Dangote before adding their markup for retail sale.
This agreement involves the Independent Petroleum Marketers Association of Nigeria, whose members control roughly 150,000 gas stations across the country.
Another industry group, the Depots and Petroleum Products Marketers Association of Nigeria, is currently finalizing arrangements to purchase fuel from Dangote.
They are securing letters of credit from banks to facilitate these transactions.
The Dangote refinery is expected to be a game-changer for Nigeria.
Despite being Africa’s top oil producer and the continent’s most populous nation, Nigeria has historically relied on imported fuel due to a lack of domestic refining capacity.
This new refinery has the potential to significantly reduce that dependence, boosting the country’s energy security.
