In a major shift for Nigeria’s downstream petroleum sector, the Dangote Petroleum Refinery & Petrochemicals will supply between 60 and 65 million litres of Premium Motor Spirit (PMS) daily to the domestic market, positioning the country for sustained fuel self-sufficiency while exporting up to 20 million litres in surplus.
President of the Dangote Group, Aliko Dangote, disclosed this in Lagos, confirming that a structured offtake agreement has been concluded with selected marketers to guarantee nationwide distribution and eliminate supply instability.
“We have agreed an offtake framework to supply up to 65 million litres daily for the domestic market,” Dangote said. “Any surplus, estimated at between 15 and 20 million litres, will be exported.”
Nigeria’s average daily petrol consumption ranges between 50 and 60 million litres. The refinery’s projected output therefore exceeds current domestic demand, marking a decisive break from decades of dependence on imported fuel and recurrent supply shortages.
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Under a revised distribution framework endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, nationwide supply will be channelled through major marketing companies, including MRS Oil Nigeria Plc, Nigerian National Petroleum Company Limited Retail, 11 Plc (Mobil), TotalEnergies Marketing Nigeria Plc, 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 structured model is designed to eliminate supply bottlenecks and curb speculative practices that have historically triggered market disruptions.
Industry analysts describe the development as a significant structural reform of Nigeria’s fuel supply chain. For decades, Africa’s largest crude oil producer relied heavily on imported refined products, exposing the economy to foreign exchange volatility, logistics disruptions and periodic scarcity.
With local refining capacity now exceeding national demand, Nigeria stands to conserve billions of dollars annually in foreign exchange previously spent on petrol imports. Analysts say the shift could ease pressure on the naira, strengthen external reserves and improve trade balance stability.
The Group Chief Executive Officer of Nigerian National Petroleum Company Limited, Engr. Bayo Bashir Ojulari, during a recent visit to the facility, described the refinery as a transformative national asset capable of redefining Nigeria’s energy security architecture and accelerating industrial growth.
He said the plant has surpassed performance expectations.
“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 stated.
