Dangote refinery to gulp N1.7tn crude monthly – Report

The Dangote Petroleum Refinery is going to need about N1.7tn worth of crude oil monthly following the directive of President Bola Tinubu mandating the Nigerian National Petroleum Company Limited to sell crude to the plant and other domestic refineries in naira.

Afinju FM
2 Min Read

 Tinubu had directed NNPC to sell crude to the Dangote refinery and other upcoming refineries in naira.

The Special Adviser to the President on Information and Publicity, Bayo Onanuga, had made this known in a post via his official X handle.

Onanuga said the Federal Executive Council adopted the move on Monday to ensure the stability of the pump price of refined fuel and the dollar-naira exchange rate.

The President, Dangote Industries, Aliko Dangote, recently stated that his refinery would hit 500,000 barrels per day capacity in August, and 550,000bpd in December 2024.

This means that between August and November this year the refinery targets to refine 500,000bpd of crude oil, before proceeding to hit the 550,000bpd mark in December.

Going by 500,000bpd refining capacity and the $83/barrel average price of Brent, the global benchmark for crude, it implies that the plant would require about $41.5m worth of crude oil daily, which represents N56.55bn, using the average exchange rate of N1,362.6/$ in 2024.

This, therefore, implies that the refinery would gulp about N1.7tn worth of crude oil monthly based on the recent directive of the President mandating NNPC to supply crude to Dangote and other domestic refineries in naira.

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