The Dangote Petroleum Refinery & Petrochemicals has moved decisively to crash petrol prices further by ramping up daily supply to between 60 and 65 million litres of Premium Motor Spirit (PMS), a volume that now exceeds Nigeria’s average consumption. For many Nigerians who have endured years of fuel scarcity and volatile pump prices, this signals a structural shift in the downstream petroleum sector.
With national daily petrol demand estimated at 50 to 60 million litres, the refinery’s output not only guarantees local sufficiency but also creates room for exports. Consequently, Nigeria may finally reduce its dependence on imports and conserve scarce foreign exchange.
Dangote Confirms 65m Litres Daily Offtake
President of the Dangote Group, Aliko Dangote, confirmed that a structured offtake agreement has been sealed with selected marketers to ensure seamless nationwide distribution.
“We have agreed an offtake framework to supply up to 65 million litres daily for the domestic market,” Dangote said. “Any surplus, estimated at between 15 and 20 million litres, will be exported.”
Under the revised distribution framework endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, supply will flow through major marketers including MRS Oil Nigeria Plc, NNPC Retail, 11 Plc, TotalEnergies Marketing Nigeria Plc, Ardova Plc and others. This structured model, therefore, aims to eliminate bottlenecks, curb speculation and stabilise prices nationwide.
NNPC Hails Refinery’s Output
The Group Chief Executive Officer of Nigerian National Petroleum Company Limited, Engr. Bayo Bashir Ojulari, described the refinery as a transformative national asset capable of redefining Nigeria’s energy security.
“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,” he stated.
For decades, Africa’s largest crude oil producer relied heavily on imported refined products, exposing the economy to foreign exchange volatility and recurring supply shocks. Now, as local refining capacity exceeds domestic demand, analysts say Nigeria stands to save billions of dollars annually, ease pressure on the naira and strengthen external reserves.