Dangote Refinery Partners with Heyden Petroleum and Ardova to Stabilize Fuel Supply in Nigeria
The Dangote Petroleum Refinery has announced that Heyden Petroleum and Ardova Plc have joined forces with the refinery to ensure a steady supply of affordable Premium Motor Spirit (PMS) in Nigeria. This partnership follows a bulk purchase agreement between the companies, propelled by the economic benefits of President Bola Tinubu’s crude-for-naira swap initiative.
In a statement issued on Thursday, the Dangote refinery emphasized that this strategic move aims to stabilize the country’s fuel market and boost energy security by offering petroleum products at competitive prices. The arrangement builds on the example set by MRS Oil Nigeria Plc, which had previously entered into a similar agreement with the refinery. MRS Oil’s initiative led to a reduction in fuel prices to N935 per litre across its stations nationwide, addressing longstanding price discrepancies between states.
Following the price reduction, MRS Oil’s stock saw a significant surge, reaching a new 52-week high, as investor optimism about the company’s future earnings prospects grew.
The partnership between Dangote Refinery, Ardova, and Heyden Petroleum will ensure a reliable and consistent supply of refined petroleum products, thanks to Dangote Refinery’s status as the world’s largest single-train refinery. The agreement allows these companies to secure a stable fuel supply chain, ensuring that they can offer affordable prices to Nigerian consumers.
Ardova Plc recently underscored the importance of this new framework, highlighting that it will formalize and strengthen the partnership with Dangote Refinery. Ardova has been a key off-taker from the refinery since its inception, but this new arrangement will solidify a long-term, mutually beneficial relationship. The companies believe that the collaboration will foster a more competitive environment in Nigeria’s downstream oil and gas sector.
“This framework will see Ardova Plc off-take a full range of petroleum products from the refinery,” the statement explained. “The partnership is expected to have a transformative impact on Nigeria’s oil and gas market by ensuring a stable and affordable supply of fuel at over 1,000 retail outlets.”
The Dangote Refinery, which began production in 2024, has already played a significant role in alleviating the challenges of fuel scarcity in Nigeria. Its large-scale operations have helped ease supply pressures that traditionally lead to price hikes and fuel shortages, especially during peak periods such as the festive season.
This year, Nigerians enjoyed a relatively smooth festive period with stable fuel availability and no significant price increases at the pump, a marked improvement compared to previous years when fuel shortages and arbitrary price hikes were common.
The Dangote Refinery’s contribution to stabilizing the market and maintaining price consistency has been hailed as a crucial step in securing Nigeria’s energy future.
