Dangote Refinery Now Supplies 92% of Nigeria’s Petrol as Government Pauses Imports

By Chisom Adeaze

Nigeria’s fuel supply chain is undergoing a significant transformation as the Dangote Petroleum Refinery now accounts for about 92 percent of the country’s daily petrol supply, following the Federal Government’s decision to halt fuel imports.

According to figures released in the February 2026 fact sheet by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), local refineries supplied 36.5 million liters of petrol per day in February, while imports contributed just three million liters daily.

This placed Nigeria’s total daily petrol supply at 39.5 million liters, with domestic refining accounting for roughly 92 percent of the volume — a sharp departure from the country’s long-standing reliance on imported fuel.

Sources within the NMDPRA confirmed that no petrol import licenses have been issued in 2026, as local refining capacity currently meets national demand.

“It’s correct that we’ve not issued import licenses this year. Local production has met national requirements, so there’s no need for importation,” a senior official at the regulator said.

Dangote Refinery Takes the Lead

At present, the Dangote refinery remains the only facility producing petrol in Nigeria, while most modular refineries primarily process crude into diesel.

The refinery has reportedly reached its full production capacity of 650,000 barrels per day, supplying over 50 million liters of petrol daily to the domestic market.

Analysts say the development marks a historic restructuring of Nigeria’s downstream petroleum sector, with local refining beginning to dominate the market after decades of heavy import dependence.

However, some industry operators warn that relying heavily on a single refinery could raise concerns about monopoly and price control in the sector.

Imports Plunge Dramatically

The February data represents a massive drop in petrol imports compared to the previous month.

In January 2026, imports averaged 24.8 million liters per day, while domestic refineries supplied 40.1 million liters, pushing total daily supply to 64.9 million liters.

By February, imports had fallen sharply to three million liters per day, representing an 87.9 percent decline.

The NMDPRA noted that the drastic fall in imports significantly reduced overall petrol supply.

“PMS supply in February 2026 reduced by 25.4 million liters per day due to a significant drop in imports,” the regulator stated.

Pump Prices Remain High

Despite a N100 reduction in the refinery’s gantry price, petrol prices at filling stations across the country remain above N1,200 per liter.

On Tuesday evening, several stations in Lagos, Abeokuta, and the Federal Capital Territory continued selling petrol between N1,200 and N1,330 per liter.

A survey along Airport Road in Abuja showed that some retail outlets were dispensing petrol at prices as high as N1,330 per liter, despite the refinery’s price adjustment.

The Dangote refinery had earlier reduced its gantry price from N1,175 to N1,075 per liter, while the coastal price dropped from N1,150 to N1,028 per liter.

Global Oil Prices Influence Local Market

The price adjustment followed a decline in global crude oil prices after recent spikes linked to geopolitical tensions involving Iran, Israel, and the United States.

Reports by Reuters indicate that Brent crude prices dropped significantly after Donald Trump suggested the conflict with Iran could soon end, easing fears of prolonged supply disruptions.

Meanwhile, the International Energy Agency warned that instability in the Middle East could still affect oil markets, particularly shipments passing through the Strait of Hormuz, one of the world’s most critical oil transit routes.

A New Era for Nigeria’s Energy Market

The surge in domestic refining capacity signals a major turning point for Nigeria’s energy sector.

If sustained, the shift could reduce dependence on fuel imports, ease pressure on foreign exchange, and strengthen the country’s energy security.

However, industry stakeholders say regulators must ensure competitive market conditions and price transparency to prevent market dominance and protect consumers from prolonged high fuel prices.