- Dangote has signed an offtake deal with 12 marketers to supply up to 65 million litres of petrol daily to the domestic market, exporting surplus volumes.
- The move aims to stabilise fuel supply, reduce imports and strengthen Nigeria’s energy security.
The Dangote Petroleum Refinery signed an offtake agreement with 12 major petroleum marketing companies. The partners will distribute between 60 million and 65 million litres of Premium Motor Spirit (petrol) daily across Nigeria. The deal aims to stabilise supply and strengthen fuel self-sufficiency.
Aliko Dangote, President of the Dangote Group, announced the agreement in Lagos. He said the framework will ensure nationwide availability of petrol. He also confirmed that the refinery will export surplus volumes after meeting local demand.
Furthermore, the refinery will supply up to 65 million litres daily to the domestic market. Surplus volumes will range between 15 million and 20 million litres per day. Exporters will ship this excess once they satisfy local demand.
Nigeria consumes between 50 million and 60 million litres of petrol daily. The refinery’s projected output exceeds this demand. Each month, the plant could supply between 1.8 billion and over 2 billion litres, depending on production levels.
The parties built this agreement on an earlier deal signed in October 2025. That arrangement aimed to stabilise supply and reduce pump price volatility. At the time, independent marketers said the refinery planned to release up to 600 million litres monthly to the local market.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority approved the new structure. Selected marketers will manage nationwide distribution. They will work to prevent supply gaps and curb speculation.
The 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 structured model strengthens logistics and reduces hoarding. It also supports price stability. In addition, exporters will conserve foreign exchange by reducing fuel imports. This approach will improve Nigeria’s trade balance and support external reserves.
For decades, Nigeria relied heavily on imported refined products. This dependence exposed the economy to exchange rate swings, global disruptions, and recurring shortages.
In addition, Bayo Bashir Ojulari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, described the refinery as a transformative asset. He noted that the plant was designed for 650,000 barrels per day. During a recent visit, it reached 661,000 barrels per day based on live operational data.
Ojulari also said the refinery marks a new phase of industrial capacity and technical capability for Nigeria.
Meanwhile, the Federal Government accelerated oil and gas reforms after it deregulated the downstream market and removed fuel subsidies under President Bola Tinubu. In this environment, the Dangote refinery will play a central role in ending petrol imports. It will also help stabilise prices and position Nigeria as a net exporter of refined products in West and Central Africa.
If stakeholders implement the model effectively, Nigeria will achieve a more stable fuel supply chain and reduce the risk of shortages.