In a landmark shift for Nigeria's downstream petroleum sector, the Dangote Petroleum Refinery has agreed to supply between 60 and 65 million litres of petrol daily across the country. This move is expected to stabilize supply and deepen Nigeria’s fuel self-sufficiency, while also allowing for the export of surplus volumes.

Aliko Dangote, Chairman of Dangote Group, disclosed in Lagos that a structured offtake agreement has been concluded with 12 major and independent oil marketers to ensure nationwide distribution and eliminate supply instability. The structured agreement guarantees adequate domestic supply while allowing for exports of surplus volumes, estimated at between 15 and 20 million litres.

Nigeria’s current daily petrol consumption ranges between 50 and 60 million litres, meaning the refinery’s output now exceeds domestic demand. This marks a major shift from decades of reliance on imported refined products.

Under a revised distribution framework endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the refinery will channel supply nationwide 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 fuel shortages.

Industry analysts describe the development as a significant structural reform in Nigeria’s downstream petroleum value chain. For decades, Africa’s largest crude oil producer depended heavily on imported refined products, exposing the economy to foreign exchange volatility, logistics disruptions, and recurring fuel scarcity.

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 new deal follows an earlier agreement in October 2025 under which 20 depot owners were to collectively lift about 600 million litres of petrol monthly from the refinery.

The Group Chief Executive Officer of Nigerian National Petroleum Company Limited, Engr. Bayo Bashir Ojulari, described the Dangote Petroleum Refinery as a transformative national asset capable of redefining Nigeria’s energy security architecture and accelerating industrial growth. During a recent visit to the facility, Ojulari noted the refinery's operational performance has exceeded initial expectations. He stated that the plant exceeded its designed capacity of 650,000 barrels per day, reaching 661,000 barrels per day.

In December 2025, the Dangote Refinery confirmed readiness to take full responsibility for Nigeria’s domestic petrol supply, pledging to deliver 1.5 billion litres monthly (50 million litres daily). The refinery later indicated that supply would rise to 1.7 billion litres per month (57 million litres daily) from February 2026. The company also called for smooth crude feedstock clearance and seamless product lifting logistics to ensure uninterrupted nationwide distribution.

If sustained, the initiative could mark the most significant transformation in Nigeria’s fuel supply system in decades.