Dangote Refinery petrol offtake deal will supply up to 65m litres daily across Nigeria, boosting fuel stability and self-sufficiency

The Dangote Petroleum Refinery has concluded a landmark petrol offtake agreement with 12 major petroleum marketing companies to distribute between 60 million and 65 million litres of Premium Motor Spirit daily across Nigeria, a move expected to stabilise supply and strengthen national fuel self-sufficiency.

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President of the Dangote Group, Aliko Dangote, disclosed the development in Lagos, describing the structured framework as a decisive shift in the country’s downstream petroleum sector.

“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 stated.

Nigeria’s daily petrol consumption currently ranges between 50 million and 60 million litres, meaning the refinery is positioned to fully meet domestic demand and export excess volumes.

On a monthly basis, the facility is expected to supply between 1.8 billion and over 2 billion litres, depending on output levels.

The Dangote Refinery petrol offtake arrangement follows an earlier agreement reached in October 2025 with downstream operators aimed at reducing supply disruptions and curbing pump price volatility.

Independent marketers had previously disclosed plans for the release of up to 600 million litres monthly to stabilise the market.

Under the new structure, endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, selected marketers will oversee nationwide distribution to prevent hoarding and speculative practices.

The participating firms 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 will export between 15 million and 20 million litres daily after meeting local supply obligations, a development expected to conserve foreign exchange, improve the trade balance and strengthen Nigeria’s external reserves.

For decades, Africa’s largest oil producer relied heavily on imported refined products, exposing the economy to currency volatility and recurring shortages.

The refinery, designed for 650,000 barrels per day, has already demonstrated output exceeding 660,000 barrels per day, according to the Group Chief Executive Officer of Nigerian National Petroleum Company Limited, Bayo Bashir Ojulari.

Ojulari described the facility as a transformative national asset capable of redefining Nigeria’s energy security architecture, marking what industry observers consider a powerful turning point for the country’s refining capacity.

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With ongoing downstream deregulation and subsidy removal reforms under President Bola Ahmed Tinubu, the structured Dangote Refinery petrol offtake model is widely seen as a strategic mechanism to ensure a more reliable and resilient fuel supply chain nationwide.