The Dangote Refinery has signed an offtake agreement with 12 major petroleum marketing companies to distribute between 60 million and 65 million litres of Premium Motor Spirit (PMS) daily, a move expected to stabilise supply and deepen Nigeria’s fuel self-sufficiency.
President of the Dangote Group, Aliko Dangote, disclosed the framework in Lagos, explaining that it will ensure nationwide petrol availability while enabling export of surplus volumes.
“We have agreed an offtake framework to supply up to 65 million litres daily for the domestic market. Any surplus, estimated at between 15 and 20 million litres, will be exported,” Dangote said.
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The arrangement represents a significant shift for Nigeria’s downstream petroleum sector, where daily consumption currently ranges between 50 million and 60 million litres. The refinery is now expected to deliver between 1.8 billion and over 2 billion litres monthly, depending on output and the number of operational days.
The latest offtake deal follows an earlier agreement in October 2025 aimed at stabilising fuel supply and curbing volatility in pump prices. At that time, marketers indicated that the refinery planned to release up to 600 million litres monthly to the domestic market.
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Endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the arrangement assigns nationwide distribution to selected marketers to prevent shortages and reduce speculative trading. These 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 model is designed to optimise logistics, reduce hoarding, and support price stability. Once domestic supply obligations are met, the refinery will export 15–20 million litres daily, conserving foreign exchange and improving Nigeria’s trade balance.
“This would conserve foreign exchange, improve the country’s trade balance and strengthen external reserves, as Nigeria will no longer rely heavily on imported fuel,” the statement added.
The Group CEO of NNPC Limited, Bayo Bashir Ojulari, hailed the refinery as a transformative national asset.
“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,” Ojulari said, noting the plant represents a new era of industrial capability and technological advancement.
Africa’s largest refinery is expected to end decades of petrol importation, stabilise prices, and position Nigeria as a net exporter of refined products across West and Central Africa. Observers say the success of this structured offtake model could usher in a more reliable fuel supply chain and reduce chronic shortages that have long affected the country.
