Nigeria’s Dangote Petroleum Refinery has signed a major offtake agreement with 12 leading petroleum marketing companies to distribute between 60 million and 65 million litres of Premium Motor Spirit (PMS) daily across the country, a move aimed at stabilising fuel supply and boosting the nation’s self-sufficiency in refined petroleum products.
President of the Dangote Group, Aliko Dangote, disclosed the deal in Lagos on Tuesday, noting that the structured framework will guarantee nationwide availability of petrol and allow the export of any surplus. “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 said.
Nigeria currently consumes between 50 million and 60 million litres of petrol per day, meaning the refinery’s output is sufficient to cover domestic demand and generate additional export volumes. Based on the daily offtake, the refinery is expected to supply roughly 1.8 billion to over 2 billion litres of petrol per month, depending on daily production and the number of days in a given month.
The agreement follows an earlier arrangement in October 2025 between Dangote Petroleum and downstream operators, which targeted monthly supply of up to 600 million litres of PMS to curb volatility in pump prices and address supply disruptions. The new framework formalises nationwide distribution and aims to prevent hoarding, speculative pricing, and logistics inefficiencies.
Selected petroleum marketers participating in the distribution 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 arrangement is endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), ensuring regulatory compliance and operational oversight.
“This structured offtake model is designed to guarantee efficient logistics, reduce hoarding, and support price stability,” the statement said. Once domestic supply obligations are met, the refinery will export between 15 million and 20 million litres of petrol daily. The move is expected to conserve foreign exchange, improve Nigeria’s trade balance, and strengthen external reserves, as it reduces reliance on imported refined fuel.
For decades, Nigeria, Africa’s largest oil producer, has depended on imported refined petroleum, exposing the economy to exchange rate fluctuations, global supply disruptions, and recurring fuel shortages. The Dangote Refinery, with a design capacity of 650,000 barrels per day, is now operating above expectations, with live measurements indicating daily output of 661,000 barrels, according to the Group CEO of NNPC Limited, Bayo Bashir Ojulari.
Ojulari described the refinery as a transformative national asset that can redefine Nigeria’s energy security architecture. “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. He added that the facility represents a new era of industrial capability and technological advancement for the country.
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The Dangote Petroleum Refinery is now positioned to play a central role in ending Nigeria’s decades-long dependence on imported refined products. By ensuring consistent domestic supply, stabilising fuel prices, and exporting surplus volumes, the refinery could also generate significant foreign exchange earnings for the economy.
The success of the structured offtake agreement is expected to transform the downstream petroleum sector, encouraging further private sector participation, improving market efficiency, and supporting President Bola Tinubu’s deregulation and subsidy removal reforms. Analysts say the initiative could turn Nigeria into a net exporter of refined petroleum products within West and Central Africa, strengthening its regional influence and energy security profile.
