Dangote Refinery dominates as petrol market share hits 62%

Nigeria’s fuel market is entering a new phase as local refining begins to play a larger role in meeting demand, easing pressure on imports and reshaping supply patterns across the country.

Fresh data shows a steady rise in domestic petrol output, with the balance tilting toward local production after years of reliance on foreign shipments. 

At the center of this shift is the Dangote Petroleum Refinery, which has expanded output and strengthened its presence in the downstream sector.

The change is already visible in distribution figures, with locally refined fuel accounting for a larger share of supply nationwide. 

The latest fact sheet from the Nigerian Midstream and Downstream Petroleum Regulatory Authority shows that domestic refining supplied about 62 percent of the country’s Premium Motor Spirit in January 2026.

For the first time in more than a year, locally produced petrol led the market, marking a clear break from past patterns. 

For decades, Nigeria depended heavily on imports despite being Africa’s largest oil producer.

The growing role of local refineries now points to a gradual but important change in how the country meets its fuel needs.

Local Supply Takes the Lead 

According to the regulator’s latest fact sheet, the refinery supplied about 62 percent of Nigeria’s Premium Motor Spirit, or PMS, in January.

Total daily PMS supply averaged 64.9 million liters during the month. 

Domestic refineries delivered 40.1 million liters per day, while imports by oil marketing companies and the Nigerian National Petroleum Company Limited accounted for 24.8 million liters. 

The figures mark a sharp drop in reliance on imported fuel compared with much of 2025.

The regulator linked the increase to stronger output from the Dangote facility, which raised production from 32 million liters per day in December to 40.1 million liters in January, a 25 percent rise month on month.

From Import Dependence to Expansion 

Supply trends last year were uneven. Imports peaked at 52.1 million liters per day in November, when domestic supply stood at 19.5 million liters.

During that period, billionaire industrialist Aliko Dangote criticized former regulator head Farouk Ahmed over the continued issuance of import licenses despite rising local capacity. 

By December, domestic supply had doubled to 32 million liters per day, setting the stage for January’s milestone. 

The 650,000-barrel-per-day single-train refinery began petrol production in September 2024 and has steadily expanded operations.

Managing Director David Bird said the plant can now deliver more than 50 million liters of petrol daily, reinforcing its role in Nigeria’s push toward greater fuel self-sufficiency.