Dangote Refinery Hits 50m Litres Daily Offtake

As fuel prices, foreign exchange and economic stability dominate conversations among Nigerians at home and abroad, Dangote Petroleum Refinery Plc says it has achieved daily offtake of 50 million litres of Premium Motor Spirit (PMS), marking a major milestone for Nigeria’s downstream petroleum sector.

As fuel prices, foreign exchange, and economic stability dominate conversations among Nigerians at home and abroad, Dangote Petroleum Refinery Plc this week said it crossed a symbolic and practical threshold.

The refinery says it is now delivering 50 million litres of petrol daily, positioning Nigeria closer to energy self-sufficiency and global fuel standards.

The newly appointed Managing Director, David Bird, cited seamless fuel supply during the Christmas and New Year holidays as evidence of growing operational stability.

“So we have been easily able to achieve over a thousand trucks of offtake. So, it’s not just the production, it’s also the offtake that has achieved 50 million litres a day,” Bird disclosed at a press briefing in Lagos on Wednesday.

He explained that while demand fluctuates—particularly on weekends—the refinery remains confident it can sustain volumes and export surplus when necessary.

“We have been able to achieve 1,000 trucks daily and 50 million litres a day,” Bird noted, adding that stable and lower fuel prices are contributing to economic stability and supporting the naira.

Bird described the milestone as a significant operational achievement for the refinery.

‘World-Class Fuel’

Beyond volume, Bird said Nigeria is now consuming Euro 5 standard fuels, the same quality exported to Europe and markets such as Dubai.

He criticised the historic dumping of substandard fuel products in West Africa, noting that Dangote Refinery’s output represents a major public health improvement due to lower sulphur content and cleaner emissions.

“Nigeria is now enjoying world-class fuel. We have the capacity, and we must make sure our production matches European quality,” he said.

Bird said the company’s long-term strategy focuses on capacity expansion and industrial ecosystem development, including a major push into petrochemicals.

The refinery currently operates an 800,000-tonne polypropylene plant, with plans to scale output to 2.4 million tonnes through additional PDH units.

Future diversification may include detergents, base oils, lubricants, and Liquefied Petroleum Gas (LPG), driven by import substitution and population-led demand.

“Dangote’s vision for the expansion is all about enforcing lower costs that can expand to areas that are population-led,” Bird said.

Steel structures for the next expansion phase are expected to begin rising before the end of 2026. The refinery is currently in a stabilisation phase, despite ramping up some units in the second half of 2025.

“Despite ramping up some units… it consistently supplied over 50 million litres of finished fuel daily, sometimes exceeding 52 million litres,” Bird said.

He attributed this to the refinery’s design.

“Dangote Refinery is not a conventional single-crude refinery, but a highly flexible merchant refining, blending, and trading platform.”

On logistics, Bird said about 4,000 trucks are currently on site. The final step before full rollout is the implementation of a computerised security and volume-tracking system to ensure accuracy in fuel deliveries.

“Off-take fluctuates depending on demand, but the refinery can export excess volumes if necessary,” he said.

Naira-for-Crude Expansion

Meanwhile, the refinery said the Federal Government’s Naira-for-Crude policy has played a key role in stabilising the naira and should be expanded.

“I think it’s a great testimony to the level of government support that we get,” Bird said.

According to him, 30–40 per cent of the refinery’s crude supply currently comes through the programme, with the balance sourced from Nigerian spot purchases and international grades.

“Let’s say between 30 and 40 per cent of our current crude diet is on the crude-for-naira programme… we continue to work with government support to ensure we get the right allocations,” he explained.

Bird said even at current levels, the policy has delivered outsized benefits.

“Even at that level… it has contributed to the stabilisation of the naira enormously.”

He added that the refinery could absorb additional volumes if allocations increase, stressing that domestic refining helps insulate Nigeria from global geopolitical shocks.

The Naira-for-Crude policy, which began in October 2024, allows local refineries to purchase crude oil from NNPC in naira instead of US dollars.

Refinery Rejects Anti-Competition Claims

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Dangote Refinery also dismissed claims that its pricing favours MRS Oil Nigeria Plc or undermines competition in the downstream market.

Responding to concerns over a reported ₦739 per litre pump price, Bird said the refinery does not control retail pricing and offers no preferential treatment to any marketer.

“Every truck that leaves this site has purchased a product at ₦699 ex-gate from a refinery perspective. There is no differentiation among customers,” he said.

He noted that Nigeria’s downstream market is fully deregulated.

“What a marketer chooses to do and post as their retail price is entirely up to them… the consumer has the choice to decide where to buy fuel.”

Bird also dismissed speculation about supply disruptions.

“We have continued to deliver 50 million litres a day. Whenever offtake has required it, marketers have been able to lift those volumes,” he said.

What It Means For Local, International Markets

Reaching 50 million litres of daily offtake moves Dangote Refinery from promise to infrastructure reality. For Nigeria, this signals a transition away from decades of dependence on imported refined fuel—one of the biggest drains on foreign exchange.

Domestic refining reduces dollar demand, supports naira stability, and weakens the link between global supply shocks and local pump prices. Nigeria has long been exposed to global disruptions—from wars to sanctions to shipping bottlenecks.

With large-scale domestic refining, Nigeria gains insulation from these shocks. The refinery’s ability to export excess volumes also means Nigeria is no longer just protecting itself—it is becoming a regional energy anchor.

There is optimism that Nigeria can move from being a dumping ground for low-grade fuel to a producer of global-standard products. West and Central Africa import most of their refined fuel. With consistent volumes and export capability, Nigeria can supply regional markets, reduce Africa’s dependence on Europe and the Middle East, and strengthen intra-African trade—aligning with the goals of the African Continental Free Trade Area (AfCFTA).

This positions Nigeria not just as Africa’s largest oil producer, but as one of its most influential downstream players.