The Dangote Petroleum Refinery has sealed an offtake agreement with 12 major and independent oil marketers to distribute between 60 and 65 million litres of petrol daily across Nigeria, in a move expected to stabilise supply and deepen the country’s fuel self-sufficiency.
The landmark arrangement in the downstream oil sector was disclosed by the Chairman of Dangote Group, Aliko Dangote, in Lagos.
Dangote said the structured agreement guarantees adequate domestic supply while allowing surplus volumes to be exported. “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 daily petrol consumption currently ranges between 50 and 60 million litres, meaning the refinery’s output now exceeds local demand, a significant shift from decades of heavy reliance on imported refined products.
Under a revised distribution framework endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), supply will be channelled nationwide through major marketers.
The companies participating in 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.
Industry analysts describe the development as a transformative moment 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, analysts say Nigeria stands to:
- Conserve billions of dollars annually in foreign exchange
- Ease pressure on the naira
- Strengthen external reserves
- Improve trade balance stability
The new deal follows an earlier October 2025 agreement under which 20 depot owners were to lift about 600 million litres of petrol monthly from the refinery.
Engr. Bayo Bashir Ojulari, Group Chief Executive Officer of Nigerian National Petroleum Company Limited, recently described the refinery as a transformative national asset capable of redefining Nigeria’s energy security architecture.
Speaking during a facility tour, Ojulari commended its operational performance. “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.
