KEY POINTS
- The refinery plans to supply 65 million litres of petrol daily within Nigeria and export up to 20 million litres surplus.
- A regulator-backed distribution system involving major marketers is intended to ensure stable nationwide availability.
- Analysts say expanded local refining could save billions in imports, boost reserves, and strengthen the naira.
Africa’s foremost industrialist, Aliko Dangote, has unveiled plans for Dangote Refinery to supply up to 65 million litres of petrol daily within Nigeria while exporting an additional 15 to 20 million litres to international markets, a move designed to meet domestic demand and position the country as a net exporter of refined fuel.
He explained that a structured offtake arrangement has already been concluded with selected petroleum marketers to guarantee seamless nationwide distribution and prevent supply disruptions that have historically affected availability.
The refinery stated that the supply plan is being implemented under a revised distribution structure endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, through which products will be channelled nationwide using major marketing firms such as MRS Oil Nigeria Plc, NNPC Limited Retail, TotalEnergies Marketing Nigeria Plc, Ardova Plc, Rainoil Limited, Conoil, Northwest Petroleum & Gas Company Limited, Bovas & Company Limited, AA Rano Nigeria Limited, AYM Shafa Limited, and Masters Energy, with the objective of removing logistical bottlenecks and discouraging hoarding or speculative practices that often trigger artificial shortages and price volatility.
Output projected to exceed national consumption levels
According to refinery estimates, Nigeria’s daily petrol consumption averages between 50 million and 60 million litres, meaning projected output from the facility will exceed domestic needs and create a consistent export surplus, marking a decisive shift from decades of dependence on imported refined petroleum products that exposed the country to foreign exchange pressures, shipping delays, and periodic supply crises.
Energy analysts believe that sustained local refining at this scale could save Nigeria billions of dollars annually in import costs while easing demand for foreign exchange, strengthening external reserves, stabilising the trade balance, and reducing downward pressure on the naira, outcomes widely viewed as critical for long-term macroeconomic stability.
