Photo caption: Dangote Refinery
*Refinery to supply 65m litres daily in Nigeria, exports surplus output
By Emeka Ugwuanyi
The decision by President of Dangote Group, Aliko Dangote, to allow Dangote Petroleum Refinery & Petrochemicals to begin distributing petrol (Premium Motor Spirit) through the major energy marketing companies and some independent petroleum marketing companies is a welcome development and a win-win for the refinery, marketers, industry and the economy.
With this decision, the lingering bickering between Dangote Refinery and the marketers has been laid to rest and Nigerians expect to witness a sustainable smooth running downstream that will make consumers nationwide enjoy the benefit of this gigantic refinery.
If the synergy remains undisturbed, fuel consumers across Nigeria are in for a good time, which will even get better when the planned expansion of the refinery comes into fruition and becomes operational.
I see this decision from the point of strength, patriotism, entrepreneurship and love for the enduring growth of the Nigerian downstream subsector. I laud the President of Dangote Group, Aliko Dangote and all the drivers of the Dangote Petroleum Refinery & Petrochemicals for the progressive step.
The Dangote Refinery had in a statement made available to the media said: “In a landmark shift for Nigeria’s downstream petroleum sector, Dangote Petroleum Refinery & Petrochemicals will supply between 60 and 65 million litres of Premium Motor Spirit (PMS) daily to meet national demand, effectively positioning the country for sustained fuel self-sufficiency while exporting up to 20 million litres in surplus.
“President of Dangote Group, Aliko Dangote, disclosed the development in Lagos, confirming that a structured offtake agreement has been concluded with selected marketers to ensure nationwide distribution and eliminate supply instability.
“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.”
Nigeria’s average daily petrol consumption stands at between 50 and 60 million litres. The refinery’s output therefore exceeds current domestic requirements, marking a decisive break from decades of fuel import dependence and recurrent scarcity.
Under a revised distribution framework endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the refinery will channel nationwide supply through major marketing companies, including MRS Oil Nigeria Plc, Nigerian National Petroleum Company Limited Retail (NNPC), 11 plc (Mobil Producing 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 and Masters Energy.
The structured model is designed to eliminate supply bottlenecks and curb speculative practices that have historically triggered disruptions.
The development signals what industry analysts describe as a significant structural reform in Nigeria’s fuel supply chain. For decades, Africa’s largest crude oil producer relied heavily on imported refined products, exposing the economy to foreign exchange volatility, logistics disruptions and periodic shortages.
With local refining now exceeding national demand, the country stands to conserve billions of dollars annually in foreign exchange previously spent on petrol imports. Analysts say this would ease pressure on the naira, strengthen external reserves, and improve trade balance stability.
The Group Chief Executive Officer of NNPC Limited, Engr. Bayo Bashir Ojulari, had during a recent visit to the facility described the refinery as a transformative national asset capable of redefining Nigeria’s energy security architecture and accelerating industrial growth.
He described the refinery as a source of national pride and an example of Nigeria’s ability to leapfrog legacy industrial constraints through the adoption of best-in-class global technology.
Commending its operational performance, Ojulari said the plant had exceeded expectations.
“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.
