At 81% Local Supply, Dangote Sells 5.84bn Litres of PMS to Nigerians Amid Import Dispute

Nigeria's domestic fuel market is increasingly dominated by the Dangote Petroleum Refinery, which supplied nearly 5.84 billion liters of petrol between January and May 2026. This volume represents about 81.4% of the total petrol available in the country, according to an analysis of Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) data. The refinery's output dwarfs the roughly 1.33 billion liters imported by oil marketers in the same period, establishing a supply ratio of about 4.4 liters from Dangote for every liter imported.

The refinery's market share has shown significant growth. In January, it supplied an average of 40.1 million liters daily, accounting for 61.8% of the market, with imports making up the remaining 38.2%. By February, Dangote's daily supply rose to 36.6 million liters, capturing 92.4% of the market as imports plummeted to just 3 million liters per day. During this period, the refinery also increased its capacity utilization from 61.27% in January to 78.24% in February.

These supply figures emerge amid a legal challenge initiated by the Dangote Refinery. The company is seeking to prevent the issuance of import licenses for refined petroleum products that can be produced domestically. Dangote argues that continued importation undermines its substantial investments, discourages local refining, and hinders Nigeria's goal of achieving energy independence. Supporters of this position believe banning imports would conserve foreign exchange, create jobs, and foster industrialization, sending a positive signal to investors.

Conversely, some oil marketers and stakeholders oppose a complete halt to imports. They contend that maintaining access to foreign supplies is crucial for ensuring market competition, preventing excessive market concentration, and guaranteeing price discovery. Allowing multiple suppliers, they argue, protects consumers from potential price gouging and ensures a stable supply chain, even as domestic refining capacity grows.