Business
Dangote Refinery Dominates 62% of Nigeria’s Petrol Market
Dangote Refinery supplies 62% of Nigeria’s petrol in January 2026, surpassing imports and marking a historic shift in local production
Dangote Petroleum Refinery supplied 62 per cent of Nigeria’s Premium Motor Spirit in January 2026, marking a historic shift as domestic production overtook imported fuel for the first time.
Also read: Ogun Residents Demand End to Border Fuel Ban
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shows that average daily PMS supply reached 64.9 million litres in January, with domestic refineries producing 40.1 million litres per day, while imports accounted for 24.8 million litres.
The increase represents a 25 per cent surge from December 2025, when Dangote Refinery supplied 32 million litres daily.
Managing Director David Bird confirmed that the refinery can produce over 50 million litres per day, signalling potential for further growth.
Commissioned in September 2024 as the world’s largest single-train refinery with a 650,000 barrels-per-day capacity, Dangote Refinery has gradually increased output, challenging Nigeria’s long-standing dependence on fuel imports.
The surge in local production reduces reliance on imports, which fell to 38 per cent of total supply in January.
Analysts say this could save foreign exchange, stabilise fuel availability, and protect the economy from global price volatility.
Aliko Dangote, President of the Dangote Group, previously criticised import licences for undermining local refining efforts.
With domestic refineries now meeting the majority of national demand, Nigeria is taking a decisive step towards fuel self-sufficiency.
Also read: Ogun Residents Demand End to Border Fuel Ban
Despite higher gantry prices for locally refined petrol compared to imports, the development signals a restructuring of the downstream petroleum sector and a more sustainable path for the country’s energy security.
President Bola Tinubu has reaffirmed the Federal Government’s commitment to rehabilitating and repositioning Nigeria’s dormant national refineries, declaring that the facilities will not be allowed to become stranded assets.
Tinubu was represented by the Permanent Secretary of the Ministry of Petroleum Resources, Mrs Patience Oyekunle, at the 20th OTL Africa Downstream Energy Week in Lagos on Monday.
The President said the government is adopting a more rigorous and commercially sustainable approach to the rehabilitation of the Port Harcourt, Warri and Kaduna refineries.
“At the same time, the government remains committed to ensuring that existing national refining assets are not allowed to become stranded investments,” the statement said.
“We are pursuing a more rigorous, commercially sustainable approach to the rehabilitation and repositioning of our refineries, supported by technical assessment, stronger partnerships, and improved operational discipline.”
The objective, according to the administration, is for Nigeria to refine more of its crude oil, create greater domestic value and become a reliable supplier of energy to Africa.
The national refineries, managed by the Nigerian National Petroleum Company Limited (NNPC), have remained largely inactive for years despite significant spending on turnaround maintenance. The NNPC has signed a memorandum of understanding with Chinese firms as part of ongoing efforts to revive the facilities.
Tinubu also noted the contribution of private refining capacity, particularly the Dangote Refinery, which has reached its 650,000 barrels-per-day nameplate capacity, in strengthening Nigeria’s prospects of becoming a net exporter of refined petroleum products.
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