Dangote refinery says it can meet Nigeria’s petrol demand

Aliko Dangote says Nigeria is on the verge of a fuel era that would have sounded like wishful thinking a few years ago: a local refinery supplying enough petrol to meet domestic demand, with extra volumes heading abroad.

Speaking in Lagos, the head of the Dangote Group said Dangote Petroleum Refinery and Petrochemicals will supply between 60 million and 65 million litres of Premium Motor Spirit, or petrol, every day for the local market. He said the plant expects to export an additional 15 million to 20 million litres daily when output exceeds what Nigeria consumes.

Nigeria’s average daily petrol demand is estimated at 50 million to 60 million litres. If the refinery delivers at the levels Dangote described, the country would have a cushion above current needs, a change that could ease the price and supply shocks that have shaped daily life and politics for decades.

Dangote said his company has reached an offtake framework with selected marketers to distribute petrol nationwide. The plan, endorsed under a revised distribution structure backed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, routes supply through major marketing firms and retail networks that already have storage, trucks and station footprints across the country.

The list of companies includes MRS Oil Nigeria, NNPC Retail, 11 Plc, TotalEnergies Marketing Nigeria, Rainoil, Northwest Petroleum and Gas, Ardova, Bovas, AA Rano, AYM Shafa, Conoil and Masters Energy.

The aim is to remove bottlenecks and cut down on speculative hoarding that has often worsened shortages. Under the model, the refinery’s volumes are expected to move through established channels instead of relying on ad hoc cargoes and last minute allocations.

Industry analysts have long argued that the biggest prize in local refining is not only fuel availability but foreign exchange savings. Nigeria, despite being Africa’s largest crude oil producer, has spent billions of dollars importing refined products, leaving the economy exposed to currency swings and supply disruptions. A steady domestic supply would reduce demand for dollars in the fuel trade and could ease pressure on the naira while supporting external reserves.

NNPC Ltd Group Chief Executive Officer Bayo Bashir Ojulari, who recently visited the facility, described the refinery as a national asset with the capacity to strengthen energy security and spur industrial growth. He said performance seen at the plant exceeded expectations, citing operating data that showed output above its nameplate capacity of 650,000 barrels per day.

The refinery’s promise now meets its hardest test, consistency. If it can keep producing, keep distributing and keep pricing competitively, Nigeria’s long dependence on imported petrol could finally start to look like history.