Dangote Refinery Finalizes Deal with 12 Major Marketers to Distribute 65 Million Litres of Petrol Daily
The Dangote Petroleum Refinery has entered into a landmark offtake agreement with 12 major petroleum marketing companies to distribute between 60 million and 65 million litres of Premium Motor Spirit (petrol) daily across Nigeria. The move is expected to stabilize the domestic fuel supply and significantly enhance the nation’s energy self-sufficiency.
Aliko Dangote, President of the Dangote Group, announced the structured framework in Lagos, explaining that the refinery is now positioned to meet the entirety of Nigeria’s daily petrol consumption, which currently averages between 50 million and 60 million litres. Under this agreement, the refinery will supply the domestic market first, with an estimated surplus of 15 million to 20 million litres daily earmarked for export to West and Central African markets.
The distribution network includes prominent industry players such as NNPC Retail, TotalEnergies, MRS Oil, 11 Plc, Ardova Plc, and Conoil, among others. By utilizing these established marketers, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) aims to ensure efficient logistics, eliminate speculative hoarding, and curb the price volatility that has historically plagued the downstream sector.
This transition marks a departure from decades of heavy reliance on imported refined products. Group Chief Executive Officer of the NNPC, Bayo Bashir Ojulari, recently described the facility as a transformative asset, noting that the refinery has already exceeded its designed capacity of 650,000 barrels per day, reaching live parameters of 661,000 barrels.
The implementation of this offtake model is projected to conserve foreign exchange and strengthen Nigeria's external reserves. As the country continues its shift toward a deregulated market following the removal of fuel subsidies, the Dangote Refinery is expected to serve as the cornerstone of Nigeria’s new energy security architecture, positioning the nation as a net exporter of petroleum products.
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