In a significant announcement that promises relief for Nigerian consumers, Aliko Dangote has pledged that his mega-refinery will continue to drive down the price of Premium Motor Spirit (PMS), commonly known as petrol. The billionaire industrialist made this commitment after a meeting with President Bola Tinubu at the Presidential Villa in Abuja, signaling a new era for the nation's downstream petroleum sector.
Price Reduction and Competitive Strategy
The Dangote Refinery has already initiated a downward price adjustment, reducing its gantry price for petrol from N877 to N828 per litre on November 6, 2025. This represents a notable 5.6% decrease. Similarly, the coastal price was lowered from N854 to N806 per litre. Dangote explained that this strategy is essential to remain competitive against imported petroleum products.
He stated that the refinery's pricing policy will focus on maintaining stability despite fluctuations in the global crude oil market. Emphasizing the long-term nature of the $20 billion investment, Dangote assured Nigerians that both diesel and petrol would be sold at "very reasonable" prices, prioritizing national benefit over quick returns.
Combating Smuggling and Supply Hurdles
A major challenge highlighted by Dangote is the persistent smuggling of petrol across Nigeria's borders. He attributed this illegal activity to the substantial price disparity between Nigeria and neighbouring countries. With fuel selling for as high as N1,500 to N1,600 per litre in some neighbouring nations compared to around N800 locally, the profit incentive for smugglers remains powerful, undermining border control efforts.
On the supply side, Dangote acknowledged difficulties in sourcing crude oil from some International Oil Companies (IOCs), which prefer selling at a premium on the international market. However, he expressed optimism that these issues would be resolved, potentially through interventions in the forthcoming national budget. He also praised the federal government's naira-for-crude initiative, describing it as a mutually beneficial arrangement.
Massive Expansion and Export Ambitions
Looking to the future, Dangote unveiled ambitious expansion plans for the refinery complex. He announced that agreements are already signed to increase the facility's capacity to 1.4 million barrels per day by 2028. This expansion, with piling work set to begin in January, is designed to surpass the current world leader, India's Reliance refinery, which has a capacity of 1.25 million barrels per day.
Dangote declared an end to the chronic fuel queues that have plagued Nigeria since the 1970s, noting that the refinery has informed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of its capacity to deliver 50 million litres of petrol daily. He revealed that Nigeria has begun exporting refined products to Europe and the United States. By February, he projected the refinery would produce 15-20 million litres more than domestic consumption, making Nigeria a consistent net exporter of petrol.
