In September 2024, the Dangote Oil Refinery started processing premium motor spirit, commonly known as petrol, soline with the initial goal of supplying 25 million liters daily.
The objective is to progressively boost output to 95 million liters per day, which Dangote believes will be enough to satisfy regional demand.
In the same month, the crude oil-for-naira exchange agreement was approved by the Federal Executive Council (FEC), enabling NNPC to sell its goods to Dangote Refinery and other local refineries in naira as well as purchase refined products from them similar way.
The mandate was aimed at using Naira rather than dollars for transactions and reducing the pressure on foreign exchange reserves, which would help to stabilize the dollar-Naira exchange rate and reduce inflation.
Below is a breakdown of marketers who now buy fuel directly from Dangote refinery:
1. NNPC
The Nigerian National Petroleum Commission (NNPC) Limited is a state-owned oil and gas company that explores, produces, refines, and markets petroleum products in Nigeria.
NNPC has sole responsibility for upstream and downstream developments.
NNPC signed a 10-year Gas Sale and Purchase Agreement with Dangote Refinery in September 2024.
The company has also signed an MOU with the refinery to receive a supply of petrol.
Initially, NNPC served as the primary offtaker of petroleum products from the $20 billion petrochemical plant. However, it later stepped back from the agreement, paving the way for other marketers to purchase directly from Dangote.
2. IPMAN
The Independent Petroleum Marketers Association of Nigeria (IPMAN) is an umbrella body for indigenous petroleum marketers in Nigeria.
IPMAN members are major customers of DAPPMAN Depots and account for more than 70% of the retail outlets in the country.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) secured an agreement with Dangote Refinery to lift products directly in November 2024.
According to the IPMAN, more than 30,000 members of the Independent Petroleum Marketers Association of Nigeria plan to purchase large quantities of Premium Motor Spirit, also known as gasoline, from the Dangote Petroleum Refinery.
After the agreement to start direct lifting from the Dangote refinery, reporters also learned that independent oil merchants could stop importing gasoline.
3. MRS Oil
MRS Oil Nigeria Plc is a fully integrated downstream player with leading positions in the Nigeria petroleum industry.
The organization is involved in the sales of premium fuels under the MRS brand across 416 retail service stations strategically spread all over Nigeria.
MRS’s partnership with the refinery occurred in December 2024.
Aliko Dangote, the CEO of the refinery, had earlier announced in that there would be a reduction in petrol prices from N970 to N899.5 in its refinery for marketers, describing it as a “bonanza” for the yuletide period.
This partnership, according to Dangote, is to ensure that this price reduction gets to the end consumer from its retail outlets nationwide at N935 per liter.
4. Ardova (AP)
Ardova Plc, which distributes petroleum products, is one of Nigeria’s leading indigenous and integrated energy corporations.
With a vast network of more than 700 retail locations throughout Nigeria and sizable storage facilities in Apapa, Lagos, and Onne, Rivers State, the corporation buys and distributes liquefied petroleum gas (LPG), kerosene (DPK), diesel (AGO), and gasoline (PMS).
Ardova Plc entered into a bulk purchase agreement with Dangote Refinery in December 2024 to guarantee supply security at affordable prices for its customers, which was announced in a statement by the Head of Brands and Corporate Communications, Ardova Plc, Grant Onome.
The firm’s relationship with the refinery is mainly to offtake a broad range of petroleum products from the refinery.
5. Hayden
Hayden Petroleum Limited is a Nigerian and UK-based oil trading company that is involved in the downstream sector of the petroleum industry.
Hayden Petroleum Limited acquired 40 new petrol stations in 2016, expanding its retail outlets across the nation.
Heyden entered an agreement with the refinery alongside Ardova (AP) to supply petroleum products at affordable prices, further stabilizing the nation’s fuel market and enhancing energy security for consumers.
The arrangement ensures that Heyden will have access to a full range of refined products, thereby securing their operations with a reliable supply chain.
Notice: This article reflects the information available at the time of publication. It will be updated as additional oil firms establish partnerships with the Dangote refinery.
