The Nigerian National Petroleum Company Limited (NNPCL) has commenced the mobilization of fuel tankers to the Dangote Refinery in Lekki, Lagos, ahead of the scheduled lifting of Premium Motor Spirit (PMS).
Yesterday, a significant number of petrol tankers formed a long queue along the road leading to the refinery, preparing to load fuel for nationwide distribution.
As of yesterday afternoon, NNPCL had dispatched over 100 trucks to the refinery’s fuel loading gantry, with plans to deploy an additional 200 trucks by the end of the day.
A vessel, Binta Saleh, was also on standby at the refinery’s discharging facility to assist in the loading process.
NNPCL is the sole off-taker of PMS from the Dangote Refinery under an agreement between the two entities.
This arrangement means that all petrol produced by the refinery will be sold exclusively to NNPCL, which will then supply it to various marketers across the country.
However, diesel produced by the refinery can be purchased directly by any interested marketers.
Under the agreement, NNPCL will supply the refinery with approximately 385,000 barrels of crude oil per day starting next month.
Payments for the crude will be made in naira, and the refinery will return an equivalent value in PMS and diesel to the domestic market, also paid in naira. This is expected to ease the country’s demand for foreign exchange.
For the time being, NNPCL will continue to pay in dollars for the PMS until the end of the month, as the refinery has been using imported crude, which is paid for in foreign currency.
With the heavy influx of trucks to the Dangote Refinery, the Lagos State Government has put measures in place to manage traffic flow in the Lekki-Ajah corridor.
Sola Giwa, Special Adviser to the Governor on Transportation, assured residents that the state is prepared to handle the anticipated increase in vehicular movement.
The Lagos State Traffic Management Authority (LASTMA) has been equipped with modern tools and trained personnel to ensure smooth traffic operations.
In addition, emergency response services, including medical ambulances, have been mobilized to address any potential incidents.
Giwa emphasized the importance of strict adherence to traffic regulations by tanker operators, warning that the state government would enforce compliance to prevent disruptions in the area.
Commercial drivers were also urged to avoid picking up or dropping off passengers at undesignated locations to ensure seamless traffic management.
The Dangote Refinery, which was inaugurated in May 2023, has the capacity to load up to 2,900 trucks daily.
Alhaji Aliko Dangote, Chairman of the Dangote Group, highlighted that the refinery’s products, including petrol and diesel, will meet Euro V standards, aligning with international environmental regulations.
The refinery’s design follows global standards set by the World Bank, the U.S. Environmental Protection Agency (EPA), and Nigeria’s Department of Petroleum Resources (DPR).
This ensures that the refinery operates with minimal environmental impact while meeting the country’s growing fuel demands.
The commencement of petrol distribution from the Dangote Refinery marks a significant milestone, coming 480 days after the facility’s inauguration.
The refinery had already begun producing diesel and aviation fuel earlier in the year, following its first crude oil delivery in December 2023.
NNPCL’s role as the sole off-taker of Dangote’s petrol is seen as critical, particularly as many other marketers lacked the capacity or interest to take on the distribution of PMS.
Government officials believe the exclusive arrangement, with payments made in naira, will ease pressure on Nigeria’s foreign exchange reserves.
As petrol lifting begins at the Dangote Refinery, attention shifts to how the distribution process will unfold and its effect on traffic in the Lekki-Ajah area.
With NNPCL leading the distribution efforts and Lagos State authorities implementing robust traffic management strategies, the refinery’s operation is expected to significantly boost the nation’s fuel supply while maintaining orderly road movement in the region.
