The Dangote Refinery has issued a stark warning that petrol prices in Nigeria could skyrocket to as high as N1,400 per liter if the country fails to reduce its reliance on imported fuel.
In a statement, the $20 billion facility, owned by Africa’s richest man Aliko Dangote, argued that without robust local refining, Nigerian consumers will remain vulnerable to the whims of importers, volatile global markets, and foreign exchange pressures.
The company positioned itself as a critical stabilizing force, noting that its operations have helped prevent even steeper price hikes and have provided a buffer for the nation’s energy security.
This declaration comes as refinery officials vehemently deny what they call misleading rumors of a shutdown, which they claim are being spread by fuel importers to justify unwarranted price increases.
To counter these reports, the refinery stated that its operations are running without interruption, highlighting that on a single Saturday, it supplied 43.3 million liters of petrol to the market—a volume significantly higher than Nigeria’s estimated daily consumption.
Officials added that the plant currently holds enough stock to cover more than 20 days of national demand and continues to offer petrol to marketers at an ex-gantry price of N699 per liter to help pass savings on to consumers.
However, the refinery’s role in the market has not been without scrutiny. In November, Nigeria’s fuel regulator reported that actual petrol deliveries from the Dangote facility averaged about 23.5 million liters daily, falling short of the expected 35 million liters.
This shortfall occurred even as the nation’s overall daily petrol consumption declined, easing some of the pressure on supply.
The situation highlights the complex and often tense dynamics of Nigeria’s downstream petroleum sector as it navigates the transition away from subsidies and toward greater domestic production.
