The Dangote Petroleum Refinery has signed an offtake agreement with 12 leading petroleum marketing firms to distribute between 60 million and 65 million litres of Premium Motor Spirit (petrol) daily across Nigeria, a development aimed at strengthening fuel supply and boosting the country’s drive toward self-sufficiency.
President of the Dangote Group, Aliko Dangote, disclosed the development in Lagos, stating that the arrangement would guarantee steady nationwide availability of petrol, while excess volumes would be exported.
According to a statement, Dangote said the refinery had agreed on a structured offtake framework to supply up to 65 million litres daily for domestic consumption. He added that any surplus—estimated at between 15 million and 20 million litres per day would be exported.
Nigeria’s daily petrol consumption is currently estimated at between 50 million and 60 million litres, indicating that the refinery’s output could comfortably meet local demand. At full domestic allocation, the facility is projected to supply between 1.8 billion and over 2 billion litres monthly, depending on production levels and the number of days in a month.
The new deal builds on an earlier agreement reached in October 2025 between the refinery and downstream operators to stabilise supply and reduce volatility in pump prices. At the time, independent marketers revealed plans to lift up to 600 million litres monthly for the local market to tackle supply disruptions and rising costs.
The arrangement, endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, assigns selected marketers to oversee nationwide distribution, a move designed to prevent shortages and curb speculative practices.
The participating companies include MRS Oil Nigeria Plc, Nigerian National Petroleum Company Limited Retail, 11 Plc, TotalEnergies Marketing Nigeria, Rainoil Limited, Northwest Petroleum & Gas Company Limited, Ardova Plc, Bovas & Company Limited, AA Rano Nigeria Limited, AYM Shafa Limited, Conoil Plc, and Masters Energy.
The statement noted that the structured model would enhance logistics efficiency, discourage hoarding, and promote price stability. It added that exporting surplus volumes would help conserve foreign exchange, improve Nigeria’s trade balance, and strengthen external reserves by reducing reliance on fuel imports.
For decades, Africa’s largest oil producer depended heavily on imported refined petroleum products, exposing the economy to exchange rate pressures, global supply shocks, and recurring shortages.
Recently, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Bayo Bashir Ojulari, described the refinery as a transformative national asset capable of reshaping Nigeria’s energy security framework. He revealed that although the plant was designed for 650,000 barrels per day, it had recorded live production figures of 661,000 barrels per day, surpassing expectations.
Nigeria has accelerated reforms in the oil and gas sector following the deregulation of the downstream market and the removal of fuel subsidy under President Bola Tinubu.
The Dangote refinery, regarded as Africa’s largest, is expected to play a pivotal role in ending decades of petrol importation, stabilising prices, and positioning Nigeria as a net exporter of refined petroleum products across West and Central Africa.
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