Dangote Petroleum Refinery has formalised a strategic distribution agreement with 12 leading petroleum marketing companies to supply up to 65 million litres of Premium Motor Spirit (PMS) daily to the Nigerian market. The move aims to ensure consistent nationwide fuel availability while allowing surplus volumes to be exported.
Brandspur Banking News Desk reports that under the framework, the refinery will allocate between 60 million and 65 million litres of petrol per day to domestic consumers. With Nigeria’s daily petrol consumption estimated at 50 million to 60 million litres, the agreement positions Dangote as a dominant supplier capable of fully meeting local demand. On a monthly scale, the supply equates to approximately 1.8 billion to over 2 billion litres, depending on output and calendar days.
The distribution arrangement assigns selected downstream operators, including MRS Oil Nigeria Plc, Nigerian National Petroleum Company Limited Retail, 11 Plc, TotalEnergies Marketing Nigeria, Ardova Plc, and Conoil Plc, responsibility for nationwide logistics. The structure is designed to enhance supply chain efficiency, reduce hoarding risks, and improve price stability following fuel subsidy removal and deregulation reforms.
Aliko Dangote, President of the Dangote Group, disclosed that any production beyond domestic obligations, projected at 15 million to 20 million litres daily, will be exported. This is expected to generate foreign exchange earnings, strengthen external reserves, and improve Nigeria’s trade balance.
The refinery, with a designed capacity of 650,000 barrels per day, represents a transformative development in Nigeria’s refining sector. Recent operational updates indicate that production has exceeded initial targets, reinforcing the refinery’s role in stabilising domestic fuel supply and reducing dependence on imported petroleum products.
Analysts note that the structured offtake framework centralises supply through coordinated marketing channels, improving transparency, logistics planning, and nationwide coverage. If sustained, the initiative could position Nigeria as a net exporter of refined petroleum products within West and Central Africa, marking a historic shift in the country’s downstream petroleum ecosystem.
The development underscores Dangote Refinery’s growing influence in the domestic fuel market and reflects a broader restructuring of Nigeria’s energy supply chain.
