In a major development for Nigeria’s downstream petroleum sector, the Dangote Petroleum Refinery & Petrochemicals has announced plans to supply between 60 and 65 million litres of Premium Motor Spirit, PMS daily to meet domestic demand, while exporting up to 20 million litres in surplus.
President of the Dangote Group, Aliko Dangote, disclosed the development in Lagos, confirming that a structured offtake agreement has been concluded with selected marketers to guarantee nationwide distribution and eliminate supply instability.
Dangote stated that the refinery has agreed on a framework to supply up to 65 million litres daily for the domestic market, adding that any excess output, estimated at between 15 and 20 million litres, will be exported.
Nigeria’s average daily petrol consumption is estimated at between 50 and 60 million litres. The refinery’s projected output therefore exceeds current national demand, marking a significant shift from decades of heavy reliance on imported refined petroleum products.
Under a revised distribution model endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, supply will be channelled through major marketing companies including MRS Oil Nigeria Plc, Nigerian National Petroleum Company Limited Retail, 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 and Masters Energy.
Industry analysts describe the development as a structural reform capable of reshaping Nigeria’s fuel supply chain. For decades, Africa’s largest crude oil producer relied heavily on fuel imports, exposing the economy to foreign exchange volatility, logistics disruptions and periodic scarcity.
With local refining capacity now exceeding domestic demand, analysts say Nigeria stands to conserve billions of dollars annually in foreign exchange previously spent on petrol imports. This, they note, could ease pressure on the naira, strengthen external reserves and improve trade balance stability.
During a recent visit to the facility, Group Chief Executive Officer of Nigerian National Petroleum Company Limited, Bayo Bashir Ojulari, described the refinery as a transformative national asset capable of redefining Nigeria’s energy security architecture.
Ojulari stated that although the plant was designed for 650,000 barrels per day, it was observed operating at 661,000 barrels per day during the inspection, a performance he said exceeded expectations and demonstrated the refinery’s operational strength.
The development signals what stakeholders consider a decisive move toward fuel self-sufficiency and long-term energy security for Nigeria
