Dangote Refinery to supply 65m litres of petrol daily
Dangote Refinery to Supply Daily Petrol Needs, Export Surplus
By Udeme Akpan
Dangote Petroleum Refinery & Petrochemicals has announced plans to supply between 60 and 65 million liters of Premium Motor Spirit (PMS) each day, positioning Nigeria toward fuel self-sufficiency. Additionally, the refinery intends to export up to 20 million liters of surplus petrol.
Aliko Dangote, President of Dangote Group, made the announcement in Lagos, revealing that a structured offtake agreement has been established with selected marketers to facilitate nationwide distribution and ensure steady supply.
“We have agreed on an offtake framework to supply up to 65 million liters daily for the domestic market,” Dangote said. “Any surplus, estimated at between 15 and 20 million liters, will be exported.”
Nigeria’s average daily petrol consumption ranges from 50 to 60 million liters. The refinery’s output thus exceeds current domestic demand, marking a significant departure from decades of dependence on fuel imports and frequent shortages.
Under a revised distribution framework approved by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the refinery will supply major marketing companies across the country, including MRS Oil Nigeria Plc, Nigerian National Petroleum Company Limited Retail (NNPC), 11 plc (Mobil Producing Nigeria), TotalEnergies Marketing Nigeria Plc, and several others.
This new model aims to eliminate supply bottlenecks and reduce speculative practices that have historically led to disruptions.
Analysts view this development as a crucial reform in Nigeria’s fuel supply chain. Previously reliant on imported refined products, Nigeria’s shift towards local refining promises considerable savings in foreign exchange, potentially alleviating pressure on the naira and enhancing trade balance and reserve stability.
During a recent visit to the facility, Engr. Bayo Bashir Ojulari, Group Chief Executive Officer of NNPC Limited, referred to the refinery as a transformative national asset, capable of redefining Nigeria’s energy security and advancing industrial growth.
Ojulari praised the refinery’s performance, noting that it has exceeded 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.
This initiative positions Nigeria to capitalize on its local refining capacity, potentially reshaping the country’s economic landscape.
