In what appears to be a strategic move aimed at stabilizing fuel distribution and easing supply challenges across Nigeria, the Dangote Petroleum Refinery has officially begun free delivery of Premium Motor Spirit (PMS), popularly known as petrol, to registered marketers in several key states. This development, confirmed by sources within the industry and marketers’ unions, is already having ripple effects on the petroleum supply chain.
The free distribution, which began earlier this week, is currently ongoing in Lagos, Ogun, Oyo, Ondo, Osun, Ekiti, Kwara, Delta, Rivers, Edo, and the Federal Capital Territory, Abuja. This proactive gesture by the $19 billion Lekki-based mega refinery—Africa’s largest single-train refinery—also covers the central North-Central state of Kwara. Industry stakeholders have praised the move, noting that it is expected to ease logistical burdens and potentially reduce pump prices as supply improves across the affected regions.
According to inside sources within the Dangote Group, the free petrol delivery initiative is a temporary support strategy aimed at facilitating easier access for independent and major marketers, particularly in light of rising transport and depot costs that have been affecting fuel availability nationwide. The refinery, which began commercial production of refined products earlier this year, has the capacity to process 650,000 barrels of crude oil per day and is projected to meet over 90% of Nigeria’s domestic fuel needs when running at full capacity.
In a brief statement issued by the refinery’s management on Monday, the company assured that other states not yet included in the current phase of the free delivery plan will be carried along in subsequent distribution waves. The statement further added that the initiative is in line with Dangote’s commitment to national economic growth, energy self-sufficiency, and reduction of Nigeria’s reliance on imported refined products.
Marketers in the benefiting states have started receiving allocations, with several confirming successful deliveries to their filling stations. Some operators in Lagos and Ogun noted that this gesture by Dangote Refinery is already cutting down wait times and easing fuel queues that had started to resurface in certain parts of the South-West.
Meanwhile, analysts have described the move as a bold and timely intervention in Nigeria’s fuel distribution crisis, especially as the country continues to grapple with forex challenges and volatility in global oil prices. With the federal government aiming to fully deregulate the downstream sector, the role of domestic refining capacity has become more critical than ever.
