Dangote Refinery Affirms Capacity to Supply 65 Million Litres of Petrol Daily
By Naija Enquirer Staff
In a landmark development for Nigeria’s downstream petroleum sector, Dangote Petroleum Refinery & Petrochemicals has affirmed its capacity to supply between 60 and 65 million litres of Premium Motor Spirit (PMS) daily to meet national demand, positioning the country for sustained fuel self-sufficiency while exporting surplus output.
President of the Dangote Group, Aliko Dangote, disclosed the development in Lagos, confirming that a structured offtake agreement has been concluded with selected marketers to ensure nationwide distribution and eliminate supply instability.
“We have agreed an offtake framework to supply up to 65 million litres daily for the domestic market,” Dangote stated. “Any surplus, estimated at between 15 and 20 million litres, will be exported.”
Exceeding Domestic Demand
Nigeria’s average daily petrol consumption currently ranges between 50 and 60 million litres. The refinery’s output therefore exceeds domestic requirements, marking a decisive shift from decades of heavy reliance on imported refined petroleum products.
Industry observers say the development could significantly reduce recurring fuel scarcity and foreign exchange exposure linked to petrol imports.
Structured Distribution Framework
Under a revised distribution framework endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), nationwide supply will be channelled through major marketing companies including MRS Oil Nigeria Plc, Nigerian National Petroleum Company Limited (NNPC) Retail, 11 Plc, 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 disrupted fuel availability.
Economic Implications
Analysts describe the refinery’s output as a structural turning point for Nigeria’s energy landscape. For decades, Africa’s largest crude oil producer relied on imported refined products, exposing the economy to foreign exchange volatility, logistics challenges and periodic shortages.
With local refining capacity now exceeding national demand, Nigeria stands to conserve billions of dollars annually in foreign exchange previously allocated to petrol imports. Experts suggest this could ease pressure on the naira, strengthen external reserves and improve trade balance stability.
NNPC Commends Operational Performance
The Group Chief Executive Officer of NNPC Limited, Engr. Bayo Bashir Ojulari, during a recent visit to the facility, described the refinery as a transformative national asset capable of redefining Nigeria’s energy security framework.
Ojulari noted that the plant had surpassed operational expectations.
“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,” he stated.
He described the refinery as a source of national pride and a demonstration of Nigeria’s capacity to adopt best-in-class global technology to overcome longstanding industrial constraints.
