The Dangote Petroleum Refinery has concluded an offtake agreement with 12 major petroleum marketing companies to distribute between 60 million and 65 million litres of Premium Motor Spirit (petrol) daily across Nigeria.
Aliko Dangote, president of the Dangote Group, disclosed this in Lagos, describing the arrangement as a structured framework designed to guarantee nationwide availability of petrol while exporting surplus volumes.
“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 said in a statement.
He explained that the move marks a significant shift in Nigeria’s downstream petroleum sector, noting that the country’s daily petrol consumption currently ranges between 50 million and 60 million litres.
At full implementation, the refinery is expected to supply between 1.8 billion and over 2 billion litres of petrol monthly, depending on daily output and the number of days in a given month.
The latest agreement builds on an earlier deal reached in October 2025 between the refinery and downstream operators aimed at stabilising fuel supply and reducing pump price volatility.
At the time, independent marketers revealed that the refinery planned to release up to 600 million litres of PMS monthly to the domestic market.
The arrangement, endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, assigns selected marketers responsibility for nationwide distribution to prevent supply disruptions and curb speculative practices.
The marketers involved 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.
According to the statement, the structured offtake model is intended to improve logistics efficiency, reduce hoarding, and promote price stability. It added that exporting between 15 million and 20 million litres daily after meeting domestic demand would help conserve foreign exchange, improve Nigeria’s trade balance, and strengthen external reserves.
For decades, Africa’s largest oil producer relied heavily on imported refined products, exposing the economy to exchange rate volatility, global supply shocks, and recurring shortages.
The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Bayo Bashir Ojulari, recently described the refinery as a transformative national asset capable of redefining Nigeria’s energy security architecture.
“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 said.
Nigeria has intensified reforms in the oil and gas sector following deregulation of the downstream market and the removal of fuel subsidy under President Bola Tinubu.
The Dangote refinery, regarded as Africa’s largest, is expected to play a central role in ending decades of petrol importation, stabilising prices, and positioning Nigeria as a net exporter of refined petroleum products across West and Central Africa.
