The number of oil marketers sourcing petroleum products directly from the Dangote Refinery continues to grow, following the successful commencement of operations at the facility.
Two key players in Nigeria’s downstream oil and gas sector, Ardova Plc and Heyden Petroleum, have now entered into bulk purchase agreements with Dangote Petroleum Refinery, a move expected to enhance fuel distribution nationwide and stop supply shortages.
A recent video circulating online has sparked debate regarding the quality of petrol refined at Dangote’s facility compared to that from the Nigerian National Petroleum Company Limited (NNPC). The video, posted by a TikTok user, showed a side-by-side test using two small generators commonly known as ‘I better pass my neighbor’ in Nigeria.
It claimed that fuel sold by MRS Oil, sourced from Dangote Refinery, lasted longer than petrol obtained from NNPC stations and was more cost-effective. According to the test, the NNPC fuel lasted 17 minutes, while the Dangote-refined petrol ran for 33 minutes in identical generators.
This claim quickly gained attention, with many Nigerians sharing their own experiences regarding fuel quality from various suppliers.
In response, NNPC dismissed allegations that its petrol is inferior, clarifying that many of its Lagos-based retail stations actually source their PMS (petrol) from the Dangote Refinery.
Olufemi Soneye, NNPC’s Chief Corporate Communications Officer, stated; “A significant percentage of Premium Motor Spirit (PMS) sold at NNPC retail stations in Lagos—where this misleading video originated—is sourced from the Dangote Refinery, which is a key partner in advancing local production and energy security.”
According to industry reports, MRS, Ardova Plc, and Heyden Petroleum are among the major marketers with bulk purchase agreements in place with Dangote Refinery. This strategic agreement allows Ardova and Heyden to secure a consistent supply of petroleum products from the world’s largest single-train refinery, ensuring stable fuel distribution at competitive prices while benefiting consumers across Nigeria.
A statement from Ardova Plc, as referenced by Dangote Group, highlights how this collaboration will promote a more competitive landscape in the country’s oil and gas sector. “This framework will enable Ardova Plc to offtake a full range of petroleum products from the refinery. While Ardova has been a key off-taker since the refinery’s inception, this new structure formalizes and strengthens our partnership, fostering long-term benefits for both parties,” the statement read.
The agreement is also expected to ease Nigeria’s fuel supply challenges, ensuring steady availability across over 1,000 retail outlets operated by the two companies.
Since commencing operations in 2024, Dangote Refinery has played a critical role in stabilizing Nigeria’s downstream oil and gas market. By reducing supply constraints that often lead to fuel shortages and price hikes, the refinery has contributed to a smoother, more predictable fuel distribution system.
During the last festive season, the improved fuel supply resulted in minimal price fluctuations and steady availability, offering relief to consumers accustomed to periodic scarcity.
With more oil marketers now securing direct agreements with Dangote Refinery, industry experts anticipate further improvements in fuel distribution, price stability, and overall efficiency in Nigeria’s petroleum sector.
