Nigeria’s campaign for gasoline self-sufficiency has acquired new steam when the Dangote Petroleum Refinery signed an offtake arrangement with 12 major marketers to distribute up to 65 million gallons of petrol per day across the country.
The agreement, announced in Lagos by billionaire businessman Aliko Dangote, is intended to ensure statewide supply of Premium Motor Spirit while allowing the refinery to export excess production.
“We have agreed on an offtake arrangement to supply up to 65 million litres per day for the domestic market. Dangote stated that any surplus, expected to be between 15 and 20 million liters, will be exported.
Nigeria’s daily petrol consumption is now expected to be between 50 million and 60 million liters, implying that the new structure may adequately fulfill local demand while allowing for export growth. The refinery is expected to emit between 1.8 and 2 billion litres each month, depending on output levels.
The structured distribution approach builds on a previous agreement reached between the refinery and downstream operators in October 2025 to reduce supply disruptions and moderate pump price volatility. Independent marketers earlier stated that the facility intended to release up to 600 million litres per month into the domestic market.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has approved the framework as part of broader measures to combat hoarding and speculative trading.
A consortium of marketers will handle nationwide logistics under the agreement, which includes MRS Oil Nigeria Plc, Nigerian National Petroleum Company Limited 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.
According to the refinery, the strategy aims to increase logistics efficiency, prevent product hoarding, and maintain pricing stability in Nigeria’s fragmented downstream market.
According to industry stakeholders, the invention has the potential to alleviate long-standing supply constraints in Africa’s largest oil producer, which has relied heavily on imported refined products for decades. This reliance made the economy vulnerable to currency volatility, global supply shocks, and periodic fuel scarcity.
Bayo Bashir Ojulari, Group CEO of the Nigerian National Petroleum Company Limited, recently characterized the refinery as a transformative national asset. He stated that the plant, which was originally intended for 650,000 barrels per day, had shown greater live operating parameters during recent technical inspections.
Energy analysts saw the latest accord as closely aligned with President Bola Tinubu’s wider downstream reforms, which abolished petrol subsidies and liberalized the market.
If fully implemented, the Dangote offtake framework has the potential to transform Nigeria’s fuel supply chain, stabilising local availability while establishing the country as a net exporter of refined petroleum products in West and Central Africa.