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Home Business

Dangote Refinery Promises Supply of 30 million Litres of Petrol Per day

News Editor by News Editor
October 30, 2024
in Business
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Dangote Refinery Promises Supply of 30 million Litres of Petrol Per day

 

…Urges NNPCL, Marketer to Stop Importing product

 

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Aliko Dangote Refinery has reassured its readiness to supply the market minimum of 30 million litres per day, urging the Nigerian National Petroleum Company Limited (NNPCL) and oil marketers to stop the importation of petrol.

Speaking after a meeting of the Implementation Committee on Crude Oil and Refined Products Sales in Naira in Abuja, the business mogul reassured that Dangote Refinery is capable of meeting local needs.

President Bola Ahmed Tinubu, who hosted the meeting at Aso Villa, explained that the sale of crude in naira would put the oil sector on an effective lane.

He warned against a “revert to outdated and ineffective methods of the last 40 years”.

“I assured Mr. President we will be able to supply the market minimum of 30 million litres per day, and we’ll be ramping up as we go on. So, we’re ready. We’re more than ready.

“What I’m saying is that the retailers should please come forward and load our products.

Read Also:

NNPCL Increases Petrol Price to N1,060
Per litre

“If they don’t come forward and pick, what do you want me to do? There is nothing I can do.

“I am expecting either NNPCL or the marketers to stop importing; they should come and buy our products because we have what they need. And you know, as they move, I will be pumping.

“I don’t know whether you understand what it takes to have a billion litres inside our tank. It’s costing me money every day.

“If I am able to collect the naira, I can actually charge somebody 32 per cent in interest. So, right now, that’s what I’m losing.

“And you are talking about 500 million, you know, I mean, we don’t print money. But the issue is that if they come and collect, then you will not see any queues in the filling stations,” said Dangote.

Chairman of the Committee and Finance Minister, Wale Edun, told the reporters that the sale of crude in naira to local refiners had set the economy on the path of industrialisation and modernisation.

Edun led NNPCL Group Chief Executive Officer (GCEO) Mele Kyari; Central Bank of Nigeria (CBN) Governor Yemi Cardoso and Federal Inland Revenue Service (FIRS) Chairman, Zach Adedeji who are members of the committee to the meeting.

Others who attended are Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Chief Executive Farouk Ahmed and his Nigerian Upstream Petroleum Regulatory Commission (NUPRC) counterpart, Gbenga Komolafe.

Edun highlighted the positive trajectory of Nigeria’s economy following recent market-driven reforms, particularly in foreign exchange and petroleum product pricing.

He noted that the policies were paving the way for industrial growth and private-sector investment.

The minister explained that the market pricing of foreign exchange was steering the country toward industrialisation by facilitating private-sector refining of crude oil.

He pointed out that local crude refining had bolstered the availability of raw materials, not only for Agriculture but for a range of industries, including chemicals, paints, building materials, and textiles.

The reforms, according to him, align with President Tinubu’s broader economic strategy, which prioritises an enabling environment for private sector investment, job creation, and economic expansion.

The minister also highlighted the benefits of market-driven pricing for petroleum products, which he said has strengthened the NNPCL’s financial stability.

Edun added that this shift is empowering federal, state, and local governments with increased revenue to fulfil essential obligations, from paying public sector salaries to funding social services and infrastructure projects.

While acknowledging that the reforms mark the early steps of a broader economic transformation, Edun expressed optimism about the country’s path to industrial development.

He said: “We have market pricing of foreign exchange that has set the economy on the path to industrialisation, because with private sector refining of crude oil, we now have raw materials, not just for agriculture, but for industry, for chemicals, for paints, for building materials, for textiles.

“This is Mr. President’s strategy and his policy of making conditions right for the private sector to invest, create jobs and grow the economy.

“Likewise, the market pricing of petroleum products has also paved the way for NNPCL to restore its balance sheet, restore its financial fortunes, and of course, to give the Federation, state and local governments more funding to allow them to meet their obligations – salary payments to workers, social services to the population generally, and of course, key infrastructure development.

“The economy has been set well and truly on a path, although it’s early steps, and there is much to be done, but we can now see a clear path to industrial development for modernisation of the Nigerian economy, because the key prices are right, and it is encouraging private sector investment.”

He added that AfreximBank, the financial adviser, was part of the meeting, and would act as an intermediary, ensuring that the parties – the seller of the crude and the buyer of the crude – were able to complete their transactions.

He said the implementation committee and the sub-committee had worked assiduously with all stakeholders to ensure the initiative was implemented.

Tags: Aliko Dangote Refinery
News Editor

News Editor

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