Nigeria’s petrol market is witnessing a historic shift as the Dangote Petroleum Refinery now supplies about 92% of the country’s daily petrol needs, following a pause in fuel imports by the Federal Government. In February 2026, domestic refineries pumped 36.5 million litres per day of petrol, while imports contributed only three million litres per day, highlighting a sharp reduction in foreign fuel reliance. Filling stations, however, maintained pump prices above N1,200 per litre despite a N100 cut in the gantry price by the refinery.
Officials from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) confirmed that no new licences for petrol imports were issued this year. “Local production has met national requirements. There’s no need for importation,” an NMDPRA source stated, indicating confidence in domestic refining capacity to meet national demand. This marks a dramatic shift from previous years when Nigeria heavily relied on imported petrol, often topping 40 million litres daily.
The Dangote Refinery currently operates at full capacity, processing 650,000 barrels per day and supplying over 50 million litres of petrol daily. Analysts say this surge in domestic production could reshape the downstream sector, reduce foreign exchange outflows for fuel imports, and strengthen national energy security. Yet, some operators caution that Dangote’s growing market dominance could lead to monopolistic tendencies and potentially higher prices for consumers.
Despite the refinery’s price reduction, retail petrol prices remain high, with filling stations in Lagos, Ogun, and Abuja selling between N1,200 and N1,330 per litre. The refinery attributed previous price hikes to global crude volatility, particularly amid tensions in the Middle East, and emphasized that its pricing mechanism aligns with market dynamics. Industry stakeholders, including IPMAN, expect prices to normalize once global oil supply stabilizes.
The shift toward local refining comes after years of heavy import dependence, which peaked in late 2025 when imports averaged over 50 million litres per day. The Dangote Refinery’s rise signals a new era for Nigeria’s energy sector, where domestic production increasingly meets demand, reducing vulnerability to global supply shocks and foreign exchange pressures. While the move strengthens national energy resilience, experts highlight the importance of regulatory oversight to ensure fair competition and long-term consumer benefits.
source: punch