Dangote Group seals agreement for distribution of 65 million litres of petrol

The Dangote Petroleum Refinery has signed an offtake agreement with 12 major petroleum marketing companies to distribute between 60 million and 65 million litres of Premium Motor Spirit (petrol) daily nationwide, a move aimed at stabilising supply and strengthening Nigeria’s fuel self-sufficiency.

Aliko Aliko Dangote, President of the Dangote Group, disclosed in Lagos that the structured arrangement will ensure nationwide petrol availability 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 15 to 20 million litres, will be exported,” Dangote said in a statement.

He noted that the initiative marks a major shift in the country’s downstream petroleum sector, as Nigeria’s daily petrol consumption currently ranges between 50 million and 60 million litres. This translates to a projected monthly supply of approximately 1.8 to over 2 billion litres, depending on daily output and the number of days in the month.

The latest agreement builds on an earlier October 2025 arrangement between the refinery and downstream operators aimed at stabilising fuel supply and curbing price volatility. At that time, independent marketers revealed the refinery had set a target to release up to 600 million litres of petrol monthly to the domestic market to address supply disruptions and rising costs.

Under the arrangement, endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, selected marketers will handle nationwide distribution to prevent supply disruptions and discourage speculative practices.

The marketers involved 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 statement highlighted that the structured offtake model is designed to improve logistics, reduce hoarding, and support price stability. Once domestic supply obligations are met, the refinery is expected to export 15 to 20 million litres daily, helping to conserve foreign exchange, boost the country’s trade balance, and strengthen external reserves by reducing reliance on imported fuel.

For decades, Africa’s largest oil producer depended heavily on imported refined products, leaving the economy exposed to exchange rate fluctuations, global supply disruptions, and recurring shortages.

The Group CEO of Nigerian National Petroleum Company Limited, Bayo Bashir Ojulari, described the refinery as a transformative national asset with the potential to redefine Nigeria’s energy security.

“This plant was designed for 650,000 barrels per day. None of us thought it would even reach 550,000, but today we saw 661,000 barrels per day in operation. These are live operational figures,” Ojulari said, highlighting the refinery’s industrial and technological advancement.

Following downstream market deregulation and the removal of fuel subsidies under President Bola Tinubu, the Dangote refinery is expected to play a central role in ending decades of petrol importation, stabilising prices, and positioning Nigeria as a net exporter of refined petroleum products across West and Central Africa.

The success of the structured offtake arrangement could usher in a more reliable fuel supply chain and significantly reduce the risk of shortages that have long affected the country.