Fuel Importers in Pain as Dangote Refinery Captures 62% of Domestic PMS Market, Crashes Price
- Dangote Refinery supplied 62% of Nigeria’s petrol in January 2026, marking a historic shift in local production
- The refinery now produces 40.1 million litres daily, reducing reliance on imported fuel significantly
- Dangote's local production pushes Nigeria towards self-sufficiency and is expected to enhance the economy and stabilise fuel availability
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s downstream petroleum market has entered a new phase after Dangote Refinery supplied 62 per cent of the country’s Premium Motor Spirit in January 2026, overtaking fuel importers for the first time.
Fresh data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority shows that total average daily PMS supply stood at 64.9 million litres in January.
Source: UGC
Of that volume, domestic refineries accounted for 40.1 million litres per day, while imports by Oil Marketing Companies and the Nigerian National Petroleum Company Limited contributed 24.8 million litres daily.
According to a Punch report, the shift marks a historic turning point. For over a year, imports consistently dominated supply.
January 2026 is the first time domestic production has surpassed foreign inflows in the 13-month reporting window from January 2025 to January 2026.
A 25 per cent surge in one month
Regulatory data links the surge directly to improved output from the Dangote facility.
The refinery increased PMS supply from 32 million litres per day in December 2025 to 40.1 million litres in January 2026, representing a 25 per cent month-on-month jump.
The refinery’s Managing Director and Chief Executive Officer, David Bird, has stated that the plant can supply more than 50 million litres of petrol daily, suggesting further room for growth.
Commissioned as the world’s largest single-train refinery with a nameplate capacity of 650,000 barrels per day, the Dangote facility began petrol production in September 2024.
Since then, it has gradually ramped up operations in pursuit of full stability.
From import dependence to domestic dominance
The latest milestone comes at a crucial time for Nigeria, which historically imported virtually all its petrol before the Dangote refinery commenced PMS production.
Throughout much of 2025, domestic supply remained modest. Between January and May 2025, total daily supply ranged from 43.7 million to 57.1 million litres, with local refineries contributing between 18 and 25 million litres per day. Imports filled the gap, peaking at 38.6 million litres daily in May.
September 2025 recorded the lowest total supply at 39.7 million litres per day, prompting the regulator to grant additional import licences.
By November 2025, imports surged to 52.1 million litres daily, the highest level in the dataset, while domestic output lagged at 19.5 million litres.
The President of the Dangote Group, Aliko Dangote, had openly criticised the issuance of import licences at the time, accusing former NMDPRA chief Farouk Ahmed of undermining local refining efforts.
December breakthrough, January consolidation
Momentum shifted in December 2025 when domestic supply doubled to 32 million litres per day, pushing total supply to 74.2 million litres daily. Imports eased slightly to 42.2 million litres.
January’s figures cemented that progress. With domestic production now covering 62% of demand, import reliance has dropped to 38 percent of the market.
What this means for Nigeria
The growing dominance of local refining could translate into significant foreign exchange savings, reduced exposure to global price volatility, and improved product availability.
The Crude Oil Refiners Association of Nigeria has maintained that its members, including Dangote, can meet national demand if provided adequate crude feedstock.
Source: Getty Images
At peak consumption of roughly 54 million litres per day, industry players argue the supply gap is narrowing rapidly.
For fuel importers, however, the numbers point to a shrinking share of a market they once controlled.
For Nigeria, the data signals a decisive step toward fuel self-sufficiency and a restructuring of the downstream petroleum landscape.
Marketers unveil new petrol price
Legit.ng earlier reported that imported premium motor spirit (PMS) emerged cheaper than petrol produced by the Dangote Refinery, according to the latest pricing data released by the Major Energies Marketers Association of Nigeria (MEMAN).
Figures published by MEMAN on Friday, February 7, 2026, showed that the average landing cost of imported petrol stood at N721.80 per litre, significantly lower than the N799 per litre gantry price offered by the Dangote Refinery.
This represented a price difference of about N77.2 per litre, with imports holding the advantage.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
