Nigeria’s 650,000 barrels per day (b/d) Dangote refinery has officially commenced the sale of gasoline to the domestic market, with the Nigerian National Petroleum Corporation (NNPC) serving as the exclusive buyer. For the month of September, the NNPC is purchasing gasoline from Dangote in U.S. dollars. However, starting in October, a crude-for-gasoline swap arrangement will come into effect, with payments made in naira.
The refinery’s set ex-refinery price for gasoline is $736 per ton, translating to 898.78 naira per litre ($0.55 per litre). Meanwhile, the retail price in Lagos has risen to N950.22 per litre, reflecting the impact of recent government subsidy reductions. Under the framework of Nigeria’s Petroleum Industry Act, pricing terms are directly negotiated between Dangote and the NNPC.
Traditionally reliant on gasoline imports to meet domestic demand, the NNPC now anticipates a reduction in this dependency with Dangote’s increased local production. However, the refinery is currently in the process of ramping up its operations. Over the past weekend, it supplied 16 million litres of gasoline, which is significantly below its full daily capacity of 57 million litres.
Full-scale operations are expected by October or November, once the refinery’s residual fluid catalytic cracker (RFCC) is fully functional. From October onwards, the NNPC will begin providing Dangote with 385,000 barrels per day of crude oil, with gasoline being sold exclusively to NNPC for distribution within Nigeria. Diesel, on the other hand, will be available for sale to other buyers.
