In response to recent speculations, oil marketers have clarified that the refined petroleum products from the $20 billion Dangote Petroleum Refinery will be sold in Naira, dispelling any notions of transactions in United States dollars. The downstream oil sector dealers also emphasized that the ongoing registration process for marketers at the refinery indicates a continued influx of operators seeking to engage with the facility.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority officials are reported to be in discussions with the refinery’s management to finalize the pricing template for the products manufactured at the refinery, which has a daily capacity of 650,000 barrels of crude oil.
On January 12, 2023, the Dangote Petroleum Refinery announced the commencement of production of Automotive Gas Oil (diesel) and JetA1 (aviation fuel). Aliko Dangote, the President of Dangote Group, expressed delight, stating, “This is a game changer for our country, and I am very fulfilled with the actualization of this project.”
Following the announcement, seven major oil marketers, including 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc, and NNPC Retail, registered with the refinery for the distribution of refined petroleum products.
Despite concerns from some Nigerians regarding the supply of crude to the plant in dollars, Chief Ukadike Chinedu, the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), affirmed that the refined products would be sold in Naira. He highlighted that other businesses operated by Aliko Dangote within Nigeria transact in the local currency.
While acknowledging that crude oil is an international commodity traded in dollars, Ukadike clarified that the legal tender in Nigeria is the Naira. He mentioned that Dangote might consider selling products in dollars for offshore transactions but emphasized the local currency for domestic sales.
On the pricing template, Ukadike stated, “No, the pricing template has not come out. What is going on now is legislation. The template is not yet out.” He added that ongoing registrations with the refinery by more oil marketers, with IPMAN at the forefront, are a positive development for the country’s domestic refining capacity.
Another anonymous major marketer confirmed that the pricing template has not been released yet but noted ongoing meetings between officials of the refinery, dealers, and regulators to discuss these details. The Dangote Petroleum Refinery, situated in the Lekki Free Trade Zone, Lagos, has received six million barrels of crude oil since its first delivery on December 12, 2023. The refinery, adhering to global emission norms, employs state-of-the-art technology for its operations.
