Nigeria’s downstream petroleum sector is set for a major transformation as the Dangote Petroleum Refinery & Petrochemicals prepares to supply between 60 and 65 million litres of Premium Motor Spirit (petrol) daily to meet national demand, with additional volumes earmarked for export.
President of the Dangote Group, Aliko Dangote, disclosed the development in Lagos, confirming that a structured offtake agreement has been finalised with selected marketers to ensure steady distribution across the country.
According to him, the arrangement will guarantee up to 65 million litres daily for the domestic market, while an estimated 15 to 20 million litres surplus will be exported.
Nigeria’s average petrol consumption is estimated at between 50 and 60 million litres per day, meaning the refinery’s output will exceed local demand and significantly reduce the country’s reliance on imported fuel.
Under a distribution framework approved by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, nationwide supply will be handled through major marketing firms, including MRS Oil Nigeria Plc, Nigerian National Petroleum Company Limited Retail, TotalEnergies Marketing Nigeria Plc, Ardova Plc, and several others.
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Industry analysts say the structured supply model is expected to eliminate distribution bottlenecks and reduce speculative practices that have historically contributed to fuel shortages.
For decades, Nigeria, Africa’s largest crude oil producer, depended heavily on imported refined petroleum products, exposing the economy to foreign exchange pressures and supply disruptions. Local refining at this scale is expected to conserve billions of dollars previously spent on imports, ease pressure on the naira, and strengthen external reserves.
Group Chief Executive Officer of Nigerian National Petroleum Company Limited, Bashir Bayo Ojulari, recently described the refinery as a transformative national asset capable of reshaping Nigeria’s energy security and industrial capacity.
He also praised the facility’s operational performance, noting that it has surpassed its 650,000 barrels-per-day design capacity, reaching about 661,000 barrels per day during a recent inspection.
Energy experts believe the refinery’s full operation could mark a decisive shift toward fuel self-sufficiency, stabilise supply, and position Nigeria as a net exporter of refined petroleum products in the region.
