DANGOTE SECURES PARTNERSHIP FOR 65 MILLION LITRES PETROL DISTRIBUTION
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By: Fasasi Hammad
The Dangote Petroleum Refinery has signed an offtake agreement with 12 leading petroleum marketing companies to supply between 60 million and 65 million litres of Premium Motor Spirit (petrol) daily across Nigeria. The deal aims to stabilise domestic fuel supply and enhance the country’s energy self-sufficiency.
Aliko Dangote, President of the Dangote Group, announced the arrangement in Lagos, highlighting that the structured framework will ensure nationwide availability of petrol while allowing surplus volumes for export.
“We have agreed on an offtake framework to supply up to 65 million litres daily for the domestic market. Any surplus, estimated at 15 to 20 million litres, will be exported,” Dangote said in a statement.
The agreement marks a significant development in Nigeria’s downstream petroleum sector, where daily petrol consumption currently ranges between 50 million and 60 million litres. Based on output and calendar days, the refinery is expected to supply roughly 1.8 billion to over 2 billion litres of petrol per month.
This new offtake deal follows an earlier October 2025 agreement between the Dangote refinery and downstream operators to stabilise fuel availability and curb pump price volatility. At that time, independent marketers reported that the refinery targeted up to 600 million litres monthly for domestic distribution to address supply disruptions and rising costs.
Endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the agreement assigns selected marketers to manage nationwide distribution, reducing supply gaps and limiting speculative practices. The participating companies include MRS Oil Nigeria Plc, NNPC Retail, 11 Plc, TotalEnergies Marketing Nigeria, Rainoil Limited, Northwest Petroleum & Gas Company Limited, Ardova Plc, Bovas & Company Limited, AA Rano Nigeria Limited, AYM Shafa Limited, Conoil Plc, and Masters Energy.
The structured offtake framework is designed to improve logistics efficiency, prevent hoarding, and maintain price stability. Domestic supply will be prioritised, with 15 to 20 million litres exported daily once local demand is met.
“This initiative will conserve foreign exchange, improve Nigeria’s trade balance, and bolster external reserves by reducing reliance on imported fuel,” the statement explained. For decades, the country depended heavily on imported refined products, leaving it vulnerable to global supply shocks, exchange rate fluctuations, and recurring shortages.
Bayo Bashir Ojulari, Group CEO of NNPC, described the Dangote refinery as a transformative national asset capable of redefining Nigeria’s energy security. He noted, “This plant was designed for 650,000 barrels per day. Today, we observed a live output of 661,000 barrels — exceeding expectations.”
Ojulari emphasised that the refinery represents a new era of industrial capability and technological advancement for Nigeria. Following the deregulation of the downstream sector and removal of fuel subsidies under President Bola Tinubu, the Dangote refinery is positioned to end decades of petrol importation, stabilise prices, and make Nigeria a net exporter of refined petroleum products in West and Central Africa.
The successful implementation of the structured offtake model is expected to create a more reliable fuel supply chain and reduce the risk of shortages that have long challenged the nation.
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