By Seyi Odewale
Nigeria’s fuel import burden is set to collapse as Dangote Petroleum Refinery & Petrochemicals moves to supply between 60 and 65 million litres of Premium Motor Spirit (PMS) daily to the domestic market, a development projected to save billions of dollars in foreign exchange and strengthen the country’s external balance.
The refinery will also export between 15 million and 20 million litres of petrol daily, positioning Nigeria as a net exporter of refined petroleum products for the first time in decades.
President of Dangote Group, Aliko Dangote, disclosed in Lagos that the company had concluded a structured off take agreement with major marketers to guarantee nationwide distribution and stabilise supply.
“We have agreed an off take framework to supply up to 65 million litres daily for the domestic market,” Dangote said. “Any surplus, estimated at between 15 and 20 million litres, will be exported.”
Nigeria’s petrol consumption currently averages between 50 million and 60 million litres daily. The refinery’s output exceeding domestic demand marks a structural shift from the country’s long-standing dependence on imported fuel, which has historically drained foreign reserves and exposed the economy to exchange rate volatility.
Under the new regulatory-approved distribution model, supply will be handled by key marketers, including NNPC Retail, MRS Oil, TotalEnergies, Ardova, Rainoil, Northwest Petroleum, Conoil, AA Rano and others, in a move designed to eliminate logistics inefficiencies and speculative disruptions.
Economic analysts say the transition to local refining dominance could ease pressure on the naira by reducing demand for dollars previously used for fuel imports. The shift is also expected to improve Nigeria’s trade balance, conserve scarce foreign exchange and enhance macroeconomic stability.
For Africa’s largest oil producer, the development represents a historic reversal of value loss from exporting crude and importing refined products at higher costs.
Group Chief Executive Officer of NNPC Limited, Engr. Bayo Bashir Ojulari described the refinery as a strategic national asset capable of reshaping Nigeria’s energy economics and accelerating industrial growth.
“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 said.
With domestic refining capacity now exceeding consumption, Nigeria’s downstream petroleum sector is entering a new phase defined by import substitution, export earnings and stronger currency fundamentals.
