The Dangote Petroleum Refinery has signed an offtake agreement with 12 leading petroleum marketing companies to supply 60–65 million litres of Premium Motor Spirit, also known as petrol daily across Nigeria.
The initiative is expected to stabilise fuel supply and strengthen the country’s drive toward self-sufficiency.
Aliko Dangote, President of the Dangote Group, stated in Lagos that the agreement’s structured framework will ensure petrol availability nationwide while enabling the export of surplus 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.”
Dangote noted that the initiative represents a significant shift in Nigeria’s downstream petroleum sector, given that the country’s daily petrol consumption currently ranges between 50 and 60 million litres.
This implies that the refinery is projected to deliver roughly 1.8 to over 2 billion litres of petrol each month, depending on daily output and the number of days in the month.
The new offtake and distribution arrangement builds on an earlier agreement made in October 2025 between the Dangote Petroleum Refinery and downstream operators, designed to stabilise fuel supply and reduce pump price volatility.
Independent petroleum marketers had stated that the refinery planned to release up to 600 million litres of Premium Motor Spirit monthly into the domestic market to help address supply shortages and rising fuel prices across the country.
Under the framework approved by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, selected marketers will manage nationwide distribution to prevent supply disruptions and curb speculative practices.
The participating marketers are 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 highlighted that the structured offtake model is designed to promote efficient logistics, discourage hoarding, and maintain price stability. It also noted that the refinery plans to export 15–20 million litres daily once domestic supply requirements are fulfilled.
“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 expounded.
Recall, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Bayo Ojulari, recently described the refinery as a transformative national asset with the potential to reshape 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.”
Nigeria has accelerated reforms in the oil and gas sector following the downstream market deregulation and the removal of the fuel subsidy under President Bola Tinubu.
The Dangote facility is expected to curb Nigeria’s dependence on petrol imports, as well as stabilising prices.
