Aliko Dangote, President of the Dangote Group, has announced that the Dangote Petroleum Refinery has finalized an offtake agreement with 12 major petroleum marketing companies to distribute between 60 million and 65 million litres of Premium Motor Spirit (PMS) daily across Nigeria. The move is expected to stabilise supply and boost the country’s fuel self-sufficiency.
Speaking in Lagos, Dangote explained that the arrangement ensures nationwide availability of petrol, while any surplus—estimated at 15 to 20 million litres daily—will be exported. “We have agreed an offtake framework to supply up to 65 million litres daily for the domestic market. Any surplus will be exported,” he said.
With Nigeria’s current daily petrol consumption ranging between 50 million and 60 million litres, the refinery is expected to supply roughly 1.8 to over 2 billion litres per month, depending on production output and the number of days in the month.
The structured offtake model, endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, designates selected marketers to manage nationwide distribution, preventing supply disruptions and curbing speculative practices. Companies 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 initiative follows a similar agreement in October 2025, when the refinery committed to supplying up to 600 million litres of PMS monthly to stabilise domestic prices. The current framework emphasizes efficient logistics, reduces hoarding, and supports price stability, while allowing for exports of 15–20 million litres daily once domestic needs are met.
Bayo Bashir Ojulari, Group CEO of the Nigerian National Petroleum Company Limited, described the refinery as a transformative asset for the nation’s energy security. He highlighted that the plant, designed for 650,000 barrels per day, recently achieved a production rate of 661,000 barrels—surpassing expectations and signaling a new era of industrial and technological capability for Nigeria.
The Dangote refinery, Africa’s largest, is expected to play a pivotal role in ending decades of petrol importation, stabilising pump prices, and positioning Nigeria as a net exporter of refined petroleum products across West and Central Africa. The success of the structured offtake agreement could usher in a more reliable fuel supply chain and reduce the chronic shortages that have historically affected the country.
