The Federal Government and the Dangote Refinery have reached an agreement for the supply of 12 million barrels of crude oil to the facility in October.

The arrangement falls under the “Crude Oil for Naira” deal, a strategic partnership between the Dangote Group and the Nigerian government.

Aliko Dangote, chief executive officer of Dangote Refinery, confirmed this development during an interview with Bloomberg TV in the U.S.

According to him, the crude oil supply is part of an ongoing agreement with the federal government to enable the refinery to process crude locally and produce petrol, diesel, and jet fuel for the domestic market.

“We are working towards a solid agreement with the federal government that ensures energy security for the country. This means no more fuel queues,” Dangote stated. “The government has committed to providing us with crude oil, and in October, they will deliver 12 million barrels, which translates to roughly 390,000 barrels a day. We will refine this crude to produce gasoline, diesel, and aviation fuel for the local market. Any surplus will be exported.”

He noted that it will help bring 50 to 60 per cent of currently non-operational filling stations back into service, drastically improving access to fuel across the country.

“The deal with the government ensures that we sell the refined products to all marketers, which will mean the reopening of 50 per cent to 60 per cent of our petrol stations that have been idle. This will also reduce the costs tied to having ships floating off the coasts of Lome and elsewhere. In terms of demurrage alone, we are looking at saving over $1 billion,” Dangote added.