Dangote refinery to sell petrol to Nigeria in dollars, not naira, executive director gives reasons

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.

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.

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]."