Oil marketers stated on Monday that refined petroleum products from the $20 billion Dangote Petroleum Refinery are to be sold in naira, not in US dollars as some had believed.
Because so many operators had continued to register with the facility, dealers in the downstream oil industry also said that the refinery’s marketing registration process was still in progress.
Furthermore, it was learned that the refinery’s management was meeting with representatives of the Nigerian Midstream and Downstream Petroleum Regulatory Authority to fine-tune the price pattern for goods produced at the plant.
The Dangote Petroleum Refinery declared on January 12, 2023, that it would start producing aviation fuel, or JetA1, and automotive gas oil, or diesel.
“We have started the production of diesel and aviation fuel, and the products will be in the market within this month once we receive regulatory approvals,” stated Aliko Dangote, president of the Dangote Group, in a statement released by the company. For Nigeria, today is really important. We are thrilled to have accomplished this important goal.
This is a significant accomplishment for our nation since it shows that we are capable of planning and completing major capital projects. This will completely transform our nation, and I am thrilled that this idea has come to fruition.
Seven significant Nigerian oil marketers were reported to have registered with the refinery for the purpose of lifting and distributing the refined petroleum products that the plant generated after that announcement.
Situated in the Dangote Industries Free Zone, Ibeju-Lekki, Lagos, Nigeria, the Dangote Petroleum Refinery and Petrochemical Project is a 650,000 barrels per day crude oil refinery and a subsidiary of Dangote Industries Limited.
In response to a question about whether the facility would sell its goods in dollars, IPMAN Chief Ukadike Chinedu, the National Public Relations Officer, acknowledged that crude oil was supplied to the plant in dollars because it is a global commodity.
He clarified, however, that other firms run in Nigeria by Africa’s richest man were doing their transactions in naira and that this would not make the facility to sell refined petroleum products to the Nigerian market in dollars.
The naira is accepted as legal currency in Nigeria. Dangote Cement does not sell cement in dollars; instead, it does so in naira. All of the necessities that he deals in, including spaghetti, are sold in naira.