By: ThinkBusiness Africa
Aliko Dangote, President of the Dangote Group, has confirmed a massive offtake agreement with 12 major petroleum marketers. The deal secures the daily distribution of up to 65 million litres of Premium Motor Spirit (PMS) across the country, effectively meeting the entirety of Nigeria’s domestic demand.
The agreement marks the end of decades of reliance on imported fuel and positions Nigeria as a burgeoning energy hub in Africa.
The framework, endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), establishes a structured supply chain to eliminate the “middleman” bottlenecks that have historically plagued Nigerian fuel markets.
Domestic Supply of 60–65 million litres per day exceeds Nigeria’s daily consumption estimated at 50–60 million litres; leaving 10–15 million litres to be exported to international markets.
The 12 marketers include industry giants such as NNPC Retail, MRS Oil, TotalEnergies, 11 Plc (formerly Mobil), Ardova Plc, and Rainoil, among others.
During the announcement in Lagos, Aliko Dangote revealed that the refinery’s operational capacity has surpassed its nameplate design. While the plant was built to handle 650,000 barrels per day (bpd), recent live data showed the facility reaching an output of 661,000 bpd.
“We have agreed on an offtake framework to supply up to 65 million litres daily for the domestic market. This is a decisive break from the era of fuel scarcity and foreign exchange volatility,” Dangote stated.
Analysts suggest this move will have a profound effect on the Nigerian economy. By ending petrol imports, Nigeria will save billions of dollars annually in foreign exchange, easing pressure on the Naira.
On Tuesday, the governor of the central bank of Nigeria, Olayemi Cardoso said the country’s foreign exchange reserves has surged to over $50 billion, as foreign exchange are not frequently earmarked for fuel importations.
With an export surplus of up to 20 million litres, Nigeria is poised to become the primary supplier of refined products to West and Central Africa.
Under the new distribution model, the refinery will utilize its massive gantry system and a fleet of over 4,000 CNG-powered trucks to ensure products reach every corner of the country.
