The Dangote Petroleum Refinery has signed an offtake agreement with 12 major and independent oil marketers to distribute 60–65 million litres of petrol daily across Nigeria.
However, this landmark deal in the downstream oil sector is expected to stabilize fuel supply and enhance Nigeria’s self-sufficiency in petrol production.
Key Details
Aliko Dangote, Chairman of Dangote Group, disclosed the agreement in Lagos. He explained that the structured offtake model ensures nationwide petrol availability while allowing surplus volumes to be exported.
“We have agreed to supply up to 65 million litres daily for the domestic market. Any surplus, estimated at 15–20 million litres, will be exported,” Dangote stated.
Note that, Nigeria’s daily petrol consumption currently ranges between 50–60 million litres. With the refinery’s output exceeding domestic demand, this marks a significant shift from decades of reliance on imported refined products.
Distribution Framework
Under a revised framework approved by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the refinery will distribute petrol nationwide through major marketers, including:
- MRS Oil Nigeria Plc
- Nigerian National Petroleum Company Limited (Retail arm)
- 11 Plc
- 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
- Masters Energy Oil and Gas Limited
Also, this structured model aims to eliminate supply bottlenecks and curb speculative practices that have historically caused fuel shortages.
Industry Impact
Analysts describe this development as a major shift in Nigeria’s downstream petroleum sector. Although, For decades, Africa’s largest crude oil producer relied heavily on imported refined products, exposing the economy to foreign exchange volatility, logistics challenges, and recurring fuel scarcity.
With local refining now exceeding national demand, Nigeria stands to benefit significantly:
- Save billions of dollars annually in foreign exchange previously spent on petrol imports.
- Ease pressure on the naira.
- Strengthen external reserves.
- Improve trade balance stability.
Previous Agreement
This new deal builds on an earlier October 2025 agreement, where 20 depot owners collectively lifted 600 million litres of petrol monthly from the refinery.
National Asset
Engr. Bayo Bashir Ojulari, Group CEO of Nigerian National Petroleum Company Limited, praised the Dangote Petroleum Refinery as a transformative asset for Nigeria. He highlighted its role in redefining the country’s energy security and driving industrial growth.
During a recent visit, Ojulari commended the refinery’s performance, noting it exceeded 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 barrels per day. These are live parameters, not reports or photographs,” he said.
