Dangote Petroleum Refinery Plc says it has reached a major milestone for Nigeria’s downstream petroleum sector by selling 50 million liters of Premium Motor Spirit (PMS) every day. This is a big deal for Nigeria’s downstream petroleum sector.
Channels TV reported that Dangote Petroleum Refinery Plc claimed this week that it crossed a symbolic and practical boundary. This comes as Nigerians at home and abroad talk about fuel costs, foreign currencies, and economic stability.
The refinery says it is now supplying 50 million liters of gasoline per day. This moves Nigeria closer to being able to produce its own energy and meet global fuel requirements.
David Bird, the new Managing Director, said that the smooth supply of fuel during the Christmas and New Year holidays was a sign of increasing operational stability.
“So we’ve been able to easily get more than a thousand trucks of offtake.” Bird said at a press conference in Lagos on Wednesday that it’s not just the production that has reached 50 million liters a day; it’s also the offtake.
He said that demand changes, especially on weekends, but the refinery is still sure it can keep up with production and export more when needed.
Bird said, “We have been able to reach 1,000 trucks a day and 50 million liters a day.” He also said that steady and decreasing gasoline costs are helping the economy and the naira.
Bird said that the milestone was a big operational success for the facility.
“Fuel of the Highest Quality”
Bird added that Nigeria is now using Euro 5 standard fuels, which are the same quality that is sent to Europe and places like Dubai.
He talked about how bad it was that West Africa used to have bad petroleum products, and he said that Dangote Refinery’s output is a big improvement for public health because it has less sulfur and better pollutants.
“Nigeria now has fuel that is as good as any in the world. “We have the ability, and we need to make sure our production meets European standards,” he said.
Bird noted that the company’s long-term plan is to grow its capacity and the industrial environment, with a big push into petrochemicals.
The refinery now has an 800,000-tonne polypropylene facility, but it aims to build more PDH units to increase production to 2.4 million tonnes.
Import substitution and population-led demand may lead to the addition of detergents, base oils, lubricants, and liquefied petroleum gas (LPG) in the future.
Bird added, “Dangote’s vision for the expansion is all about enforcing lower costs that can grow in areas that are led by people.”
Before the end of 2026, steel structures for the next phase of development should start to go up. The refinery is now in a stabilization phase, even though it will start up certain units in the second half of 2025.
Bird added, “Even though some units were turned up, it always provided more than 50 million liters of finished fuel every day, sometimes more than 52 million liters.”
He said this was because of how the refinery was built.
“Dangote Refinery is not a normal single-crude refinery; it is a very flexible merchant refining, blending, and trading platform.”
Bird noted that there are around 4,000 trucks on site right now for logistics. The last phase before the complete rollout is to set up a computerized system for tracking security and volume to make sure that gasoline deliveries are correct.
“Off-take changes based on demand, but the refinery can send out extra volumes if needed,” he said.
Naira-for-Crude Growth
The refinery also noted that the federal government’s Naira-for-Crude strategy has helped keep the naira stable and should be expanded.
Bird remarked, “I think it’s a great sign of how much support we get from the government.”
He said that 30 to 40 percent of the refinery’s crude supply comes from the program right now. The rest comes from Nigerian spot purchases and international grades.
“Let’s say that between 30 and 40 percent of our current crude diet is on the crude-for-naira program. We are still working with the government to make sure we get the right allocations,” he said.
Bird added that even at the current levels, the policy has had huge benefits.
“Even at that level, it has helped the naira stabilize a lot.”
He also said that the refinery could handle more volume if allocations go up. He stressed that refining oil in Nigeria helps protect the country from geopolitical shocks throughout the world.
Starting in October 2024, the Naira-for-Crude policy lets local refineries buy crude oil from NNPC in naira instead of US dollars.
Refinery Denies Claims of Anti-Competition
Also, Dangote Refinery said that its prices do not favor MRS Oil Nigeria Plc or hurt competition in the downstream sector.
Bird added that the refinery does not set retail prices and does not provide any marketer special treatment in response to worries about a rumored ₦739 per liter pump price.
“From the refinery’s point of view, every vehicle that leaves this site has bought something for ₦699 ex-gate. He said, “There is no difference between customers.”
He said that Nigeria’s downstream business is completely free of rules.
“The retailer can set their own price and do whatever they want. The customer can choose where to buy gas.”
Bird also said that rumors about supply problems were not true.
“We keep delivering 50 million liters every day.” “Whenever offtake has needed it, marketers have been able to raise those amounts,” he said.
What It Means for Markets at Home and Abroad
When Dangote Refinery reaches 50 million liters of daily offtake, it goes from being a promise to being a real piece of infrastructure. For Nigeria, this means moving away from decades of relying on imported refined fuel, which is one of the largest drains on foreign exchange.
Refining oil in Nigeria lowers the demand for dollars, helps keep the naira stable, and makes it less likely that global supply shocks would affect local pump prices. Nigeria has been affected by problems around the world for a long time, including wars, sanctions, and shipping delays.
Nigeria is protected from these shocks by processing a lot of oil at home. Nigeria is no longer only safeguarding itself; the refinery’s potential to export extra volumes implies it is becoming a regional energy hub.
People are hopeful that Nigeria can go from being a place where low-quality fuel is dumped to a place that makes items that meet global standards. Most of the refined fuel that West and Central Africa gets comes from other countries. Nigeria can provide regional markets, lower Africa’s reliance on Europe and the Middle East, and boost commerce between African countries—all of which are goals of the African Continental Free commerce Area (AfCFTA).
This makes Nigeria not just the biggest oil producer in Africa, but also one of the most important participants in the downstream market.
About the Author
