The Dangote Petroleum Refinery has agreed an offtake agreement with 12 major and independent oil marketers to distribute between 60 and 65 million litres of petrol daily across the country.
The move, which is a landmark agreement in the downstream sector of the oil industry, is expected to stabilise supply and deepen Nigeria’s fuel self-sufficiency.
This arrangement was disclosed in a statement by the Chairman of Dangote Group, Aliko Dangote, in Lagos, noting that this structured offtake agreement would guarantee nationwide availability of petrol as well as exporting surplus volumes.
What he is saying
Dangote said the structured agreement guarantees adequate domestic supply while allowing for exports of 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.”
Nigeria’s current daily petrol consumption ranges between 50 and 60 million litres, meaning the refinery’s output now exceeds domestic demand — a major shift from decades of reliance on imported refined products.
Under a revised distribution framework endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the refinery will channel supply nationwide through major marketers.
The companies listed under the arrangement include:
- 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
According to the refinery, the structured model is designed to eliminate supply bottlenecks and curb speculative practices that have historically triggered fuel shortages.
More insight
Industry analysts describe the development as a structural shift in Nigeria’s downstream petroleum value chain.
For decades, Africa’s largest crude oil producer depended heavily on imported refined products, exposing the economy to foreign exchange volatility, logistics disruptions, and recurring fuel scarcity.
With local refining now exceeding national demand:
- Nigeria could conserve billions of dollars annually in FX previously spent on petrol imports
- Pressure on the naira may ease
- External reserves could improve
- Trade balance stability may strengthen
“With local refining now exceeding national demand, the country stands to conserve billions of dollars annually in foreign exchange previously spent on petrol imports.
“Analysts say this would ease pressure on the naira, strengthen external reserves, and improve trade balance stability.”
The new deal follows an earlier agreement in October 2025 under which 20 depot owners were to collectively lift about 600 million litres of petrol monthly from the refinery.
The Group Chief Executive Officer of Nigerian National Petroleum Company Limited, Engr. Bayo Bashir Ojulari, has described the Dangote Petroleum Refinery as a transformative national asset capable of redefining Nigeria’s energy security architecture and accelerating industrial growth.
Speaking during a recent visit to the facility, Ojulari said the refinery represents a source of national pride and demonstrates Nigeria’s capacity to overcome longstanding industrial challenges through the adoption of world-class technology.
He commended the refinery’s operational performance, noting that it has exceeded initial 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. These are live parameters, not reports or photographs,” he stated.
What you should know
In December 2025, the Dangote Refinery confirmed readiness to take full responsibility for Nigeria’s domestic petrol supply, pledging to deliver 1.5 billion litres monthly (50 million litres daily).
The refinery later indicated that supply would rise to 1.7 billion litres per month (57 million litres daily) from February 2026.
The company also called for smooth crude feedstock clearance and seamless product lifting logistics to ensure uninterrupted nationwide distribution.
If sustained, the initiative could mark the most significant transformation in Nigeria’s fuel supply system in decades
