The Dangote Petroleum Refinery has signed an offtake agreement with 12 major petroleum marketing companies to distribute between 60 million and 65 million liters of Premium Motor Spirit daily nationwide, a move expected to stabilize supply and boost Nigeria’s fuel self-sufficiency.
President of the Dangote Group, Aliko Dangote, disclosed this in Lagos, saying the framework would ensure nationwide availability of petrol while allowing exports of surplus volumes.
“We have agreed an offtake framework to supply up to 65 million liters daily for the domestic market. Any surplus, estimated at between 15 million and 20 million liters, will be exported,” Dangote said in a statement.
Nigeria’s daily petrol consumption is estimated at between 50 million and 60 million liters, indicating the refinery could meet domestic demand and generate excess supply for export.
Based on projected output, the refinery is expected to supply between 1.8 billion and more than 2 billion liters of petrol monthly, depending on production levels and the number of days in each month.
The agreement builds on an earlier deal reached in October 2025 between the refinery and downstream operators to stabilize fuel supply and curb price volatility. At the time, independent marketers said the refinery planned to release up to 600 million liters of petrol monthly to the domestic market.
The arrangement, endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, designates selected marketers to handle nationwide distribution to prevent supply disruptions and curb speculative practices.
Participating marketers 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.
The refinery said the structured offtake model is designed to improve logistics efficiency, reduce hoarding and support price stability. It added that surplus volumes of between 15 million and 20 million liters per day would be exported after meeting domestic supply needs.
The development is expected to conserve foreign exchange, improve Nigeria’s trade balance and strengthen external reserves by reducing reliance on imported fuel.
For decades, Africa’s largest oil producer has depended on imported refined products, exposing the economy to exchange rate volatility, global supply disruptions and recurring shortages.
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 reshaping the country’s energy security.
“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,” he said.
Ojulari said the refinery signals a new phase of industrial and technological advancement for Nigeria.
The development follows ongoing reforms in the oil and gas sector, including deregulation of the downstream market and removal of fuel subsidies under President Bola Tinubu.
The Dangote refinery, the largest in Africa, is expected to play a key role in ending decades of petrol importation, stabilizing prices and positioning Nigeria as a net exporter of refined petroleum products across West and Central Africa.
Analysts say the success of the structured offtake model could lead to a more stable fuel supply chain and reduce the risk of persistent shortages.
