In a significant move aimed at addressing Nigeria’s ongoing fuel supply challenges, the federal government is set to deliver 12 million barrels of crude oil to the Dangote Refinery next month. The agreement marks a major step towards boosting local fuel production and reducing the country’s reliance on imports.

Aliko Dangote, Chief Executive Officer of Dangote Refinery, confirmed the development during an interview with Bloomberg TV in the U.S. Dangote stated that the crude oil supply is part of a broader partnership with the federal government, known as the “Crude Oil for Naira” deal. The arrangement is designed to allow the refinery to process crude oil locally, producing petrol, diesel, and jet fuel for domestic consumption.

“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 said. “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.”

The upcoming supply of crude oil is expected to have a transformative impact on Nigeria’s fuel distribution network. Dangote explained that this initiative will help revive 50 to 60 percent of currently non-operational filling stations, improving access to fuel across the country.

Moreover, the deal is projected to save Nigeria approximately $1 billion in demurrage fees—costs incurred due to delays in unloading cargo ships. Dangote emphasized that reducing the reliance on transporting fuel over long distances via ships will bring substantial savings and efficiency.

“The deal with the government ensures that we sell the refined products to all marketers, which will mean the reopening of 50 percent to 60 percent 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,” he added.

This collaboration between the Dangote Group and the Nigerian government is expected to play a pivotal role in stabilizing the country’s fuel supply, bringing an end to persistent fuel shortages, and securing Nigeria’s energy future.