In a significant move aimed at addressing Nigeria’s persistent fuel supply challenges, Dangote Petroleum Refinery has announced a partnership with Heyden Petroleum and Ardova Plc to ensure the availability of affordable Premium Motor Spirit (PMS) across the country. This agreement, which was made public on Thursday, builds on the economic relief provided by President Bola Tinubu’s crude-for-naira swap initiative, and is expected to have a transformative impact on the nation’s downstream oil and gas sector.
The bulk purchase agreement between the refinery and the two companies aims to stabilize the fuel market and strengthen energy security by providing a reliable and affordable supply of petroleum products. According to a statement from Dangote Refinery, this move follows the successful model set by MRS Oil Nigeria Plc, which had previously entered into a similar agreement. As a result of that collaboration, MRS Oil recently reduced its fuel prices to N935 per litre nationwide, addressing regional price disparities that had long been a concern for consumers.
The statement highlighted that the new partnership between Dangote Refinery, Heyden Petroleum, and Ardova would secure a steady supply of petroleum products from the world’s largest single-train refinery, ensuring competitive prices across the nation. The agreement guarantees that both Ardova and Heyden will have access to a wide range of refined products, providing them with a dependable and consistent supply chain.
Ardova Plc has underscored the importance of this agreement in fostering a more competitive environment in Nigeria’s oil and gas industry. The company has been a major off-taker from Dangote Refinery since its inception, but this formalized framework is expected to further strengthen the relationship and create long-term benefits for both parties. Ardova’s statement emphasized that the collaboration will help enhance the competitive landscape in the sector, providing consumers with stable and affordable fuel prices.
The partnership is expected to address Nigeria’s ongoing fuel scarcity issues, with the two companies set to distribute petroleum products through over 1,000 retail outlets across the country. The Dangote Refinery’s large-scale operations, which began production in 2024, have already played a crucial role in alleviating supply pressures, which often lead to price hikes and shortages.
The festive season in Nigeria saw relatively smooth fuel availability and no significant price increases at the pump, in stark contrast to previous years, when the country faced fuel shortages and arbitrary price hikes. Dangote Refinery’s role in stabilizing the market has been praised for ensuring price consistency and supporting a more predictable fuel supply.
As the refinery continues its operations, the partnership with Heyden Petroleum and Ardova is expected to contribute to the long-term stability of Nigeria’s fuel market, benefiting both consumers and the industry as a whole.