Dangote Refinery Signs 65 Million Litres Daily Petrol Distribution Deal with 12 Marketers
Nigeria’s fuel supply landscape is set for a major shift as the Dangote Petroleum Refinery has signed a landmark offtake agreement to distribute between 60 million and 65 million litres of Premium Motor Spirit (PMS) daily across the country. The deal, reached with 12 major petroleum marketing companies, is expected to stabilise supply, curb speculative pricing, and move Nigeria closer to fuel self-sufficiency after decades of reliance on imports.
President of the Dangote Group, Aliko Dangote, disclosed the development in Lagos, describing it as a structured framework that guarantees nationwide petrol availability. According to him, the refinery will supply up to 65 million litres daily for domestic consumption, while any surplus—estimated at between 15 and 20 million litres per day—will be exported to international markets.
With Nigeria’s daily petrol consumption currently ranging between 50 million and 60 million litres, the refinery’s output is projected to exceed local demand. On a monthly basis, this translates to between 1.8 billion and over 2 billion litres, depending on daily production levels. The new arrangement builds on an earlier October 2025 agreement aimed at releasing up to 600 million litres monthly to ease supply disruptions and rising fuel costs.
The distribution model, endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, assigns nationwide logistics responsibilities to key marketers, including MRS Oil Nigeria Plc, Nigerian National Petroleum Company Limited Retail, 11 Plc, TotalEnergies Marketing Nigeria, Ardova Plc, and others. The structured offtake model is designed to eliminate hoarding, improve logistics efficiency, and support price stability while conserving foreign exchange by reducing import dependence.
For many Nigerians who have endured years of fuel scarcity and pump price volatility, the development signals cautious optimism. The Group Chief Executive Officer of Nigerian National Petroleum Company Limited, Bayo Bashir Ojulari, described the refinery as a transformative national asset, noting it recently achieved 661,000 barrels per day in live production—above its 650,000 barrels per day design capacity. As reforms continue under Bola Tinubu following downstream deregulation, the Dangote refinery is positioned to end decades of petrol importation and potentially make Nigeria a net exporter of refined petroleum products across West and Central Africa.
source: punch