Nigeria’s fuel supply chain is set for a major shift as the Dangote Petroleum Refinery signed a large-scale offtake and distribution agreement with leading petroleum marketers to deliver up to 65 million litres of petrol daily across the country.
The agreement covers between 60 million and 65 million litres of Premium Motor Spirit for domestic use each day, a volume expected to meet national demand and significantly reduce the risk of fuel scarcity. Any production above local requirements estimated at 15 to 20 million litres daily will be exported.
Speaking in Lagos, Aliko Dangote, President of the Dangote Group, said the structured framework was designed to ensure steady nationwide availability of petrol while allowing Nigeria to earn foreign exchange from surplus exports. He noted that daily petrol consumption in the country currently ranges between 50 million and 60 million litres.
At full delivery levels, the refinery is projected to supply between 1.8 billion and over 2 billion litres of petrol monthly, depending on output and the number of operating days. Industry observers say this scale of supply could bring greater stability to the downstream petroleum market and help moderate price fluctuations.
The latest deal builds on an earlier understanding reached with downstream operators in October 2025, which focused on improving supply consistency and reducing volatility in pump prices.
At the time, independent marketers disclosed plans for up to 600 million litres of petrol to be supplied monthly to the domestic market.
The distribution arrangement has the backing of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, with selected marketers responsible for nationwide logistics. The model is aimed at improving efficiency, discouraging hoarding, and eliminating speculative practices in fuel distribution.
Marketers involved in the agreement include MRS Oil Nigeria, NNPC Retail, 11 Plc, TotalEnergies Marketing Nigeria, Ardova Plc, Rainoil, Conoil, AA Rano, Bovas & Company, Northwest Petroleum, AYM Shafa and Masters Energy.
Beyond strengthening local supply, the export component of the deal is expected to conserve foreign exchange and improve Nigeria’s trade balance by cutting dependence on imported fuel. For decades, Africa’s largest crude oil producer relied heavily on imported refined products, exposing the economy to exchange-rate volatility and global supply disruptions.
The Group Chief Executive Officer of Nigerian National Petroleum Company Limited, Bayo Bashir Ojulari, recently described the refinery as a transformative national asset, noting that its operational performance has exceeded initial expectations.
With fuel subsidies removed and the downstream sector deregulated, the Dangote refinery is expected to play a central role in ending petrol importation, stabilising supply, and positioning Nigeria as a net exporter of refined petroleum products across West and Central Africa.
