The Dangote Petroleum Refinery has signed an agreement with 12 leading petroleum marketing firms to distribute up to 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 arrangement in Lagos, explaining that the structured offtake framework would ensure consistent nationwide distribution of petrol, while excess volumes would be exported.
According to him, the refinery will supply between 60 million and 65 million litres daily to the domestic market. Any surplus, estimated at 15 to 20 million litres per day, will be sold to international buyers once local demand is satisfied.
Nigeria’s daily petrol consumption currently stands at between 50 million and 60 million litres. Based on projected output, the refinery is expected to produce between 1.8 billion and over 2 billion litres monthly, depending on daily supply levels.
The latest deal builds on an earlier agreement reached in October 2025 between the refinery and downstream operators to stabilise fuel availability and reduce volatility in pump prices. At that time, independent marketers revealed that the refinery planned to release up to 600 million litres of petrol monthly to address supply gaps and rising costs.
The distribution framework, endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, assigns selected marketers responsibility for nationwide logistics to curb hoarding and speculative pricing.
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 efficiency in distribution, conserve foreign exchange, improve Nigeria’s trade balance, and strengthen external reserves by reducing reliance on imported fuel.
For decades, Africa’s largest crude oil producer depended heavily on imported refined products, leaving the economy vulnerable to exchange rate fluctuations and global supply shocks.
Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Bayo Bashir Ojulari, recently described the refinery as a strategic national asset capable of transforming Nigeria’s energy security landscape. He said the 650,000-barrels-per-day facility recently operated at 661,000 barrels per day during live performance tests, surpassing expectations.
Nigeria has intensified oil and gas reforms following the deregulation of the downstream sector and the removal of fuel subsidy under President Bola Tinubu.
The Dangote refinery, regarded as Africa’s largest, is expected to play a critical role in ending decades of petrol importation, stabilising domestic prices, and positioning Nigeria as a net exporter of refined petroleum products in West and Central Africa.
