By DAYO ADESULU
Nigeria Poised for Fuel Self-Sufficiency
In a historic development for Nigeria’s downstream petroleum sector, Dangote Petroleum Refinery & Petrochemicals is set to supply between 60 and 65 million litres of Premium Motor Spirit (PMS) daily. This move not only meets domestic demand but also positions Nigeria to export up to 20 million litres of surplus fuel, signaling a new era of energy self-sufficiency.
Aliko Dangote, President of the Dangote Group, revealed the plan in Lagos, noting that a structured offtake agreement has been reached with selected marketers to guarantee nationwide distribution and mitigate recurring supply disruptions.
“We have agreed on an offtake 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.”
Exceeding National Demand
Nigeria’s average daily petrol consumption ranges between 50 and 60 million litres. With the Dangote Refinery’s output surpassing this threshold, the nation is breaking free from decades of dependency on imported fuel. Analysts suggest that this shift could drastically reduce recurring fuel shortages that have historically impacted both consumers and industries.
The refinery’s distribution will operate under a revised framework approved by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Supply will be channeled through major marketing companies, including:
MRS Oil Nigeria Plc
NNPC Retail
11 Plc (Mobil Producing Nigeria)
TotalEnergies Marketing Nigeria Plc
Rainoil Limited
Northwest Petroleum & Gas Company Limited
Ardova Plc
Bovas & Company Limited
AA Rano Nigeria Limited
AYM Shafa Limited
Conoil
Masters Energy
This structured approach is aimed at eliminating bottlenecks and curbing speculative practices that have historically caused fuel shortages.
Economic and Industrial Impacts
The Dangote Refinery’s consistent output is expected to save Nigeria billions of dollars annually previously spent on importing refined petrol. Economists argue that reducing import dependency will ease pressure on the naira, strengthen foreign reserves, and improve trade balance stability.
Engr. Bayo Bashir Ojulari, Group CEO of NNPC Limited, described the refinery as a transformative national asset capable of redefining Nigeria’s energy security and boosting 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,” Ojulari confirmed.
He hailed the refinery’s operational performance as exceeding expectations and emphasized its role as a source of national pride and a benchmark for adopting cutting-edge global technology in Nigeria.
A Structural Reform for Nigeria’s Fuel Sector
Industry analysts view the Dangote Refinery’s output as a structural reform in the country’s fuel supply chain. For decades, Nigeria, Africa’s largest crude oil producer, relied heavily on imported refined products, leaving the economy vulnerable to foreign exchange fluctuations, logistics challenges, and periodic shortages.
With local refining now surpassing domestic needs, the nation is poised for economic benefits and energy independence. Observers say this development could mark the beginning of a new era where Nigeria not only meets its fuel requirements but also becomes a regional exporter, strengthening its position in Africa’s energy landscape.
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