Business

Dangote Refinery Signs Off‑Take Deal to Deliver 65m Litres of Petrol Across Nigeria

Dangote Refinery Signs Off‑Take Deal to Deliver 65m Litres of Petrol Across Nigeria

Dangote Petroleum Refinery & Petrochemicals has confirmed that it will supply between 60 million and 65 million litres of Premium Motor Spirit (PMS) — commonly known as petrol — daily to meet Nigeria’s national fuel demand, effectively positioning the country for sustained fuel self‑sufficiency and ending decades of reliance on imported petrol. The facility will also export up to 20 million litres of surplus petrol daily under a structured off‑take arrangement with major marketers.

The announcement was made by Aliko Dangote, President of the Dangote Group, during a press engagement in Lagos, where he said the refinery had concluded a structured distribution agreement with key local oil marketing firms to ensure stable nationwide supply and curtail fuel scarcity and speculation.

“We have agreed a framework to supply up to 65 million litres daily for the domestic market. Any surplus, estimated at between 15 million and 20 million litres, will be exported,” Mr. Dangote said, affirming confidence in the refinery’s production capacity and downstream rollout strategy.

Output Exceeds Domestic Consumption

Nigeria’s average daily petrol consumption currently ranges between 50 million and 60 million litres, meaning the Dangote Refinery now produces more petrol than the country needs for local use. Industry watchers say this marks a decisive break from decades of fuel import dependence, which historically exposed the nation to foreign exchange pressures, supply disruptions, and periodic scarcity.

READ ALSO:

Structured Off‑Take and Nationwide Distribution

Under a distribution framework approved by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), petrol from the Dangote Refinery will be channelled through a network of major marketers to ensure broad and consistent coverage across the country. Participating companies include:

  • MRS Oil Nigeria Plc
  • Nigerian National Petroleum Company Limited Retail (NNPC Retail)
  • 11 Plc (formerly Mobil Oil Nigeria)
  • **TotalEnergies Marketing Nigeria Plc
  • Rainoil Limited
  • Ardova Plc
  • Northwest Petroleum & Gas Company Limited
  • Bovas & Company Limited
  • AA Rano Nigeria Limited
  • AYM Shafa Limited
  • Conoil Plc
  • Masters Energy

The structured model is designed to eliminate supply bottlenecks, curb speculative hoarding, and stabilise retail prices nationwide.

Economic Impact and Fuel Security

Energy analysts describe the development as a structural reform in Nigeria’s fuel supply chain. For decades, Africa’s largest crude oil producer depended heavily on imported refined products, draining valuable foreign exchange reserves and exposing the economy to global price shocks and logistical bottlenecks.

With local refining now exceeding national demand, Nigeria is poised to conserve billions of dollars annually previously spent on petrol imports. Analysts say this would ease pressure on the naira, strengthen external reserves, and improve the country’s trade balance stability. There is also optimism that Nigeria could become a regional supplier of refined products, potentially exporting petrol to neighbouring countries, boosting revenue and supporting economic growth.

Refinery Performance and Government Support

During a recent facility visit, Bayo Ojulari, Group Chief Executive Officer of NNPC Limited, described the Dangote Refinery as a transformative national asset capable of reshaping Nigeria’s energy security architecture and accelerating industrial growth. He noted that the refinery had surpassed expectations, performing above its design capacity of 650,000 barrels per day, with live production reaching 661,000 barrels per day on recent measurement — a performance indicator that underscores the plant’s operational efficiency and reliability.

Ojulari said, “This plant was designed for 650,000 barrels per day. None of us thought it would even touch 550,000. What we saw live today was 661,000. These are live parameters, not reports or photographs.”

Broader Industrial and Economic Benefits

Experts say the refinery’s success will have ripple effects across Nigeria’s industrial landscape. With reliable access to refined products, manufacturing and transportation sectors are expected to benefit from improved logistics and reduced production costs. Additionally, the refinery’s integrated petrochemical complex — one of the largest in the world — is projected to stimulate growth in downstream industries, create jobs, and attract foreign and local investment.

The government has repeatedly lauded the operationalisation of the Dangote Refinery as a key milestone in Nigeria’s economic diversification strategy. It aligns with national objectives to boost energy independence, reduce import bills, strengthen local capacity, and stimulate private-sector‑led growth.

Dangote Refinery Signs Off‑Take Deal to Deliver 65m Litres of Petrol Across Nigeria

Trends Admin

Recent Posts

MURIC Demands Suspension of Olubi School Principal, VPs Over Alleged Religious Discrimination

MURIC Demands Suspension of Olubi School Principal, VPs Over Alleged Religious Discrimination The Muslim Rights…

3 hours ago

Police Clarify ₦100m Mistakenly Paid into IGP’s Son’s Account

Police Clarify ₦100m Mistakenly Paid into IGP’s Son’s Account The Nigeria Police Force (NPF) has…

3 hours ago

Pregnant Woman, 5 Final-Year Nursing Students Die in Ilorin‑Ogbomoso Road Crash

Pregnant Woman, 5 Final-Year Nursing Students Die in Ilorin‑Ogbomoso Road Crash At least six people,…

3 hours ago

Sheikh Gumi Warns Against Airstrikes on Bandits, Backs Forest Security Service

Sheikh Gumi Warns Against Airstrikes on Bandits, Backs Forest Security Service Islamic cleric Ahmad Abubakar…

3 hours ago

FG Denies ₦10 Billion Ransom Payment, Affirms Pupils Freed Through Security Operations

FG Denies ₦10 Billion Ransom Payment, Affirms Pupils Freed Through Security Operations The Federal Government…

3 hours ago

Lookman Assist Powers Atletico to 7–4 Aggregate Win Over Brugge

Lookman Assist Powers Atletico to 7–4 Aggregate Win Over Brugge Super Eagles forward Ademola Lookman…

3 hours ago