The Dangote Petroleum Refinery has inked a groundbreaking offtake agreement with 12 prominent oil marketers, committing to supply between 60 and 65 million liters of petrol daily to meet domestic needs while earmarking surplus for international markets.
This move marks a pivotal shift from decades of import dependency, promising to stabilize fuel supplies, conserve foreign exchange, and bolster the nation’s economy.
Aliko Dangote, Chairman of the Dangote Group, unveiled the agreement in a statement from Lagos, emphasizing its role in ensuring nationwide availability of Premium Motor Spirit (PMS), commonly known as petrol. “We have agreed on an offtake framework to supply up to 65 million liters daily for the domestic market. Any surplus, estimated at between 15 and 20 million liters, will be exported,” Dangote stated.
With Nigeria’s average daily petrol consumption hovering between 50 and 60 million liters, the refinery’s output now surpasses local demand, flipping the script on a long-standing reliance on imported refined products that has plagued Africa’s largest crude oil producer.
The agreement, endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), establishes a revised distribution framework to channel supplies through established major marketers.
This structured model aims to eradicate supply bottlenecks and deter speculative practices that have historically fueled artificial shortages and price hikes. Industry experts hail it as a “structural shift” in the downstream petroleum value chain, potentially saving billions in foreign exchange annually by curbing imports.
The offtake deal involves a consortium of major and independent marketers, ensuring broad coverage across Nigeria’s regions. Here’s a breakdown of the participating companies:
MRS Oil Nigeria Plc
Nigerian National Petroleum Company Limited
11 Plc, formerly Mobil Oil Nigeria
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
This lineup, as detailed in the refinery’s announcement, is designed to leverage the marketers’ existing infrastructure for seamless nationwide rollout.
For years, Nigeria has grappled with the irony of being a top crude exporter yet a net importer of refined fuels, exposing the economy to volatile foreign exchange rates, logistical snarls, and recurrent scarcity.
The Dangote Refinery, Africa’s largest with a capacity of 650,000 barrels per day, is now positioned to reverse this trend. Analysts project that exceeding domestic demand could conserve billions in FX outflows, alleviate pressure on the naira, enhance external reserves, and stabilize the trade balance.
“This is more than just a supply deal; it’s a cornerstone for energy independence,” noted energy economist Dr. Fatima Akintola in a recent briefing. With local refining now outpacing consumption, Nigeria stands to redirect resources toward infrastructure and diversification, potentially easing inflationary pressures tied to fuel costs.
The agreement builds on a prior pact from October 2025, where 20 depot owners committed to lifting about 600 million litres monthly from the refinery. That earlier arrangement laid the groundwork for scaled-up production, and today’s deal refines the focus on major marketers to optimize efficiency.
News of the deal has sparked optimism across social media and industry circles. On X (formerly Twitter), announcements from outlets like TheCable and ARISE News have garnered thousands of views, with users expressing hope for lower pump prices and an end to fuel queues. One post highlighted the refinery’s ramp-up in output, signaling a “new era” for Nigeria’s energy landscape.
However, some skeptics question whether the surplus exports will truly translate to domestic price stability amid global oil fluctuations.
As the refinery continues to ramp up, this agreement could redefine Nigeria’s role in global energy markets, turning a chronic importer into a potential exporter. Stakeholders will be watching closely to see if it delivers on its promise of uninterrupted supply and economic resilience.
WHAT YOU SHOULD KNOW
Nigeria has taken a decisive step toward fuel self-sufficiency. The Dangote Petroleum Refinery has signed a major offtake agreement with 12 leading marketers to supply 60–65 million liters of petrol daily—enough to fully meet (and slightly exceed) the country’s current consumption of 50–60 million litres per day.
