- The Dangote Petroleum Refinery has signed an offtake deal to distribute 60–65 million litres of petrol daily across Nigeria
- The President of the Dangote Group, Aliko Dangote, said a surplus of 15–20 million litres will be exported after meeting local demand
- The agreement covers 12 major marketers, including Nigerian National Petroleum Company Limited Retail and Total Energies Marketing Nigeria
- The move aims to boost Nigeria’s fuel self-sufficiency and foreign exchange conservation
Dangote Petroleum Refinery has sealed an offtake agreement with 12 leading petroleum marketing firms to distribute between 60 million and 65 million litres of Premium Motor Spirit (PMS), commonly known as petrol, across Nigeria daily, a development expected to boost supply stability and reinforce the country’s drive toward fuel self-sufficiency.
The President of the Dangote Group, Aliko Dangote, announced the development in Lagos, explaining that the structured arrangement would ensure nationwide availability of petrol while enabling the export of excess volumes.
According to a statement issued, Dangote said, “We have agreed an offtake framework to supply up to 65 million litres daily for the domestic market. Any surplus, estimated at between 15 and 20 million litres, will be exported.”
He described the initiative as a significant turning point for Nigeria’s downstream petroleum sector, noting that the country’s daily petrol consumption currently stands between 50 million and 60 million litres.
Based on the projected daily supply, the refinery is positioned to deliver between 1.8 billion and over 2 billion litres of petrol monthly, depending on output levels and the number of days in each month.
The fresh offtake and distribution framework builds on an earlier agreement reached in October 2025 between the refinery and downstream operators to stabilise fuel supply and reduce pump price volatility.
At the time, independent petroleum marketers revealed that the refinery aimed to release as much as 600 million litres of PMS monthly into the domestic market to tackle persistent supply gaps and rising costs nationwide.
Under the new arrangement, which has been endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, selected marketers will oversee nationwide distribution to curb supply disruptions and eliminate speculative activities.
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 explained that the structured offtake model is intended to streamline logistics, curb hoarding, and enhance price stability. It added that once domestic supply commitments are fulfilled, the refinery will export between 15 million and 20 million litres daily.
“This would conserve foreign exchange, improve the country’s trade balance and strengthen external reserves, as Nigeria will no longer rely heavily on imported fuel,” the statement explained.
For decades, Africa’s largest oil producer has depended heavily on imported refined petroleum products, leaving the economy vulnerable to foreign exchange fluctuations, global supply chain disruptions, and recurring fuel shortages.
The Group Chief Executive Officer of Nigerian National Petroleum Company Limited, Bayo Bashir Ojulari, recently described the refinery as a transformative national asset capable of reshaping Nigeria’s energy security framework.
He said, “This plant was designed for 650,000 barrels per day. None of us thought it would even touch 550,000. What we saw live today was 661,000. These are live parameters, not reports or photographs.”
Ojulari further stated that the refinery signals a new chapter in Nigeria’s industrial and technological advancement.
Nigeria has accelerated reforms in its oil and gas sector following the deregulation of the downstream market and the removal of fuel subsidy under President Bola Tinubu.
The Dangote refinery, the largest in Africa, is widely expected to play a decisive role in ending decades of petrol importation, stabilising domestic fuel prices, and positioning Nigeria as a net exporter of refined petroleum products to West and Central Africa.
Industry observers believe the success of the structured offtake framework could usher in a more dependable fuel distribution system and significantly reduce the supply shortages that have long plagued the country.