Nigeria’s Dangote refinery, with a capacity of 650,000 b/d, has started selling gasoline domestically, with the state-owned NNPC as its exclusive buyer. For September, NNPC is paying Dangote in US dollars for gasoline deliveries, but starting in October, a crude-for-gasoline swap will be implemented, with payments settled in naira.
The refinery’s ex-refinery gasoline price is set at $736 per ton, equivalent to 898.78 naira per litre ($0.55/l), while the retail price in Lagos stands at N950.22/l, reflecting recent price increases due to the reduction of government subsidies. Gasoline pricing is negotiated directly between the parties under the Petroleum Industry Act.
NNPC, which has historically relied on imports to meet domestic gasoline demand, hopes that Dangote’s operations will reduce this dependence. While the refinery aims to satisfy local demand, it is still in the process of ramping up production, having supplied 16 million litres over the weekend—well below its full capacity of 57 million litres per day.
Full operations are expected by October or November, once the residual fluid catalytic cracker (RFCC) becomes fully operational. Starting in October, NNPC will provide Dangote with 385,000 b/d of crude, with gasoline sales exclusively for domestic distribution through NNPC. Diesel, however, will be available for other buyers.