Nigeria’s Dangote refinery, with a capacity of 650,000 barrels per day, has commenced domestic gasoline sales, partnering exclusively with the state-owned Nigerian National Petroleum Corporation (NNPC) as its sole buyer.
NNPC will pay Dangote in U.S. dollars for gasoline deliveries in September, with a crude-for-gasoline swap set to begin in October, to be settled in naira. The ex-refinery price for gasoline is established at $736 per ton, or 898.78 naira per liter (approximately $0.55), while the retail price in Lagos is set at 950.22 naira per liter, reflecting recent increases due to reduced government subsidies. Gasoline pricing is negotiated directly between the parties under Nigeria’s Petroleum Industry Act.
NNPC has traditionally relied on imports to meet domestic gasoline needs but aims to decrease this dependence through Dangote’s operations. The refinery, still ramping up production, supplied 16 million liters over the weekend, significantly below its full capacity of 57 million liters per day.
Full operations are anticipated by October or November, contingent on the complete functionality of the residual fluid catalytic cracker (RFCC). Starting in October, NNPC will supply Dangote with 385,000 barrels per day of crude oil, with gasoline sold exclusively for domestic distribution through NNPC. Diesel will be available to other buyers.
