Nigeria’s Dangote Group has expanded its gas supply agreements with subsidiaries of the Nigerian National Petroleum Company (NNPC) as it moves to secure long-term energy supply for major industrial expansion projects, according to a Reuters report.
Three Dangote Group companies – Dangote Petroleum Refinery, Dangote Fertiliser Plant and Dangote Cement Plc – confirmed on Monday that they have strengthened gas supply contracts with Nigerian Gas Marketing Limited (NGML) and other NNPC units. The agreements are aimed at ensuring reliable gas feedstock to power operations and support capacity expansion across the group’s flagship assets.
The deals come as Nigeria accelerates efforts to reposition natural gas as a transition fuel to drive industrialisation, reduce reliance on imported fuels and lower emissions. Gas is central to the Dangote Group’s integrated industrial model, powering refining, fertiliser production and cement manufacturing.
The Dangote Petroleum Refinery, Africa’s largest single-train refinery with a capacity of 650,000 barrels per day, relies heavily on gas for power and processing. Securing stable gas supply is considered critical as the refinery ramps up operations and moves toward full capacity, a milestone expected to significantly reduce Nigeria’s dependence on imported petroleum products.
Similarly, the Dangote Fertiliser Plant, one of the world’s largest urea facilities, depends on natural gas as both a feedstock and an energy source. Nigeria holds Africa’s largest proven gas reserves, and fertiliser production has become a strategic priority for boosting agricultural productivity and foreign exchange earnings.
Dangote Cement, the continent’s largest cement producer, has also been shifting toward gas and alternative fuels to reduce energy costs and limit exposure to volatile diesel prices. Expanding gas access supports its cost-efficiency drive and aligns with environmental targets.
Industry analysts say the expanded agreements highlight the growing role of NNPC as a commercial gas supplier following its transition into a limited liability company. They also underscore the private sector’s increasing reliance on domestic gas as Nigeria seeks to monetise its vast reserves and build gas-based industries.
The Nigerian government has repeatedly identified gas as a pillar of economic growth under its “Decade of Gas” strategy, which aims to attract investment into gas infrastructure, processing and domestic utilisation.
By locking in gas supply for its expansion programmes, Dangote Group is positioning itself to scale production while supporting Nigeria’s broader goals of cleaner energy use, industrial self-sufficiency and export growth.
