The clarification regarding the trading currency for refined petroleum products from the recently completed Dangote Petroleum Refinery, has been provided by an oil marketers’ association to the effect that the product will be only in naira as the registration process for marketers at the refinery is ongoing.
The officials of Nigerian Midstream and Downstream Petroleum Regulatory Authority are currently discussing with the refinery’s management to finalize the pricing template for the products.
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A significant milestone was achieved on January 12, 2023, when the Dangote Petroleum Refinery commenced the production of Automotive Gas Oil (diesel) and JetA1 (aviation fuel). Aliko Dangote, the President of Dangote Group, expressed joy and emphasized the importance of the achievement for Nigeria. The refinery has attracted seven major oil marketers for the lifting and distribution of refined petroleum products, including 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc, and NNPC Retail.
Concerns have emerged about the supply of crude to the refinery in dollars, sparking questions about the currency in which the refined products would be sold. The plant, located in the free trade zone, raised worries among Nigerians regarding the dispensing currency for the products.
Responding to inquiries, the National Public Relations Officer of IPMAN, Chief Ukadike Chinedu, clarified that while crude oil is purchased in dollars as an international commodity, the refined products would be sold in naira. He emphasized the legality of the naira as the country’s tender, citing other businesses operated by Dangote in Nigeria, which all transact in naira. Ukadike acknowledged the importance of closing the foreign exchange rate gap to ensure affordable petroleum products in Nigeria. He assured that Dangote would sell the products in the local currency, emphasizing ongoing legislative and pricing template development processes.
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Although the pricing template for refined products from the refinery has not been released, more oil marketers, spearheaded by IPMAN, are actively registering with the facility. Ongoing meetings with regulators are aimed at discussing insights into the plant’s activities and determining a feasible pricing strategy for the products, expected to be released in naira.
The Dangote Petroleum Refinery, a subsidiary of Dangote Industries Limited, is a colossal 650,000 barrels per day crude oil refinery situated in the Lekki Free Trade Zone in Lagos. Since receiving its first crude delivery on December 12, 2023, the refinery has processed six million barrels, with the latest cargo delivered on January 8, 2024. The facility is equipped to load 2,900 trucks a day at its truck-loading gantries, and the refined products are expected to meet Euro V specifications.
