Dangote refinery petrol supply now dominates Nigeria’s market as imports pause, accounting for about 92% of daily petrol supply in February
The Dangote Petroleum Refinery supplied about 92 per cent of Nigeria’s daily petrol supply in February 2026, as the Federal Government halted the issuance of import licences for Premium Motor Spirit.
Also read: Kunle Afolayan laments ₦11m monthly diesel cost
Figures released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority showed that domestic refineries supplied 36.5 million litres of petrol per day in February, while imports contributed only three million litres daily.
The data placed total national daily petrol supply at 39.5 million litres, marking a dramatic shift in Nigeria’s fuel market as local refining begins to dominate.
Officials at the regulator confirmed that no fuel import licences had been issued this year because local production now meets national demand.
“It’s correct that we’ve not issued import licences this year. It is obvious that local production has met national requirements,” a senior official at the authority said.
Currently, the refinery owned by Aliko Dangote remains the only facility producing petrol in the country, while other modular refineries focus mainly on diesel production.
In January 2026, imports averaged 24.8 million litres per day, while domestic refineries supplied 40.1 million litres, pushing total daily supply to 64.9 million litres.
The regulator noted that the sharp fall in imports caused the total petrol supply in February to drop significantly.
“PMS supply in February 2026 reduced by 25.4 million litres per day due to a significant drop in imports,” the authority stated.
The shift reflects a **dramatic** restructuring of Nigeria’s downstream petroleum sector, which historically relied heavily on imported fuel.
For example, in December 2025, petrol imports averaged 42.2 million litres daily, compared with 32 million litres from domestic refineries.
However, rising local refining capacity in late 2025 and early 2026 has gradually reversed that pattern.
Industry stakeholders say the surge in domestic production could reduce Nigeria’s demand for foreign exchange previously used for fuel imports.
Despite the gains in local supply, concerns are emerging over the possibility of a monopoly in the downstream sector.
An industry operator who asked not to be named warned that allowing a single refinery to dominate the market could create long-term pricing challenges.
“Dangote is gradually enjoying a monopoly in the downstream sector, and this is not healthy for any market,” the source said.
The development comes as the refinery recently reduced its petrol gantry price from N1,175 to N1,075 per litre.
However, a survey across filling stations in Lagos, Ogun and the Federal Capital Territory showed that pump prices remained above N1,200 per litre.
The price disparity persists even after global oil prices declined following tensions in the Middle East and fluctuations in the international crude market.
The refinery said its pricing reflects global crude benchmarks and prevailing foreign exchange rates under the naira for crude arrangement.
Also read: UNILAG faults ASUU strike, says examinations will proceed
Industry observers believe the growing role of the Dangote refinery could significantly reshape Nigeria’s fuel supply chain in the coming years.
