Aliko Dangote has reassured Nigerians that the Dangote Refinery will continue to supply petrol at a “reasonable” and competitive price, despite volatility in global oil markets and persistent cross-border smuggling pressures. His comments followed a closed-door meeting with President Bola Tinubu at the State House on Friday, where economic stability and energy security topped discussions.
Fuel Prices Will Remain Competitive
Speaking with reporters after the meeting, the billionaire industrialist explained that downward pressure on pump prices is expected to persist as the refinery competes directly with imported petroleum products. He noted that the current local pump price around ₦800 per litre remains significantly lower than the ₦1,500–₦1,600 per litre average in neighbouring countries.
According to him, “Prices are going down, and they have to go down because we’re competing with imports. Smuggling has reduced, but not entirely. As long as the price difference remains, people will still smuggle. But diesel, gasoline, and PMS will continue to be sold at very reasonable market prices.”
Industry analysts say this competitive pricing environment will help stabilise domestic fuel supply, reduce arbitrage losses, and strengthen downstream market efficiency.
Massive Investment, Long-Term Vision
Despite the estimated $20 billion invested in the 650,000-barrel-per-day facility the world’s largest single-train refinery Dangote stressed that he is not in a rush to recoup his capital. The refinery began producing diesel and aviation fuel in January 2024 and commenced petrol supply in September 2024, a development analysts view as a major shift for Nigeria’s petroleum ecosystem.
“We’re not here to make our $20 billion back quickly,” he said. “This is a long-term investment. The legacy I want to leave is to ensure that whatever Nigeria needs, we will help deliver it.”
His remarks underscore the refinery’s strategic importance in cutting Nigeria’s reliance on fuel imports, boosting forex savings, and enhancing national energy security.
Tinubu Meeting Focused on Economy, Energy Stability
Dangote confirmed that his meeting with President Tinubu centred on Nigeria’s economic terrain, environmental concerns, and the broader impact of the refinery’s operations. He described the engagement as “very fruitful,” emphasising the need for strong collaboration between government and private sector players.
Since the 2023 removal of fuel subsidies, pump prices have soared from about ₦160 per litre to nearly ₦1,000. With the Dangote Refinery now stabilising supply, prices have gradually eased toward the mid-₦800 range.
As the facility scales up output and strengthens distribution, expectations remain high that Nigeria will experience more stable pricing, reduced smuggling incentives, and improved downstream performance.
By championing competitive pricing and long-term value creation, the Dangote Refinery is positioning itself as a central force in redefining Nigeria’s fuel supply landscape.
