The President of Dangote Industries Limited, Aliko Dangote, has provided detailed insights into the factors influencing the recent reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly referred to as petrol. This adjustment, which lowered the price to ₦899.50 per litre at the Dangote Refinery’s loading gantry, was attributed to prevailing market dynamics and competitive pressures in the downstream petroleum sector.
In an interview featured in an Arise TV documentary, Dangote highlighted his unwavering commitment to balancing the protection of the multibillion-dollar refinery’s interests with the broader economic interests of Nigeria.
He explained, “The price reduction is a response to the market, let me put it that way. This is a refinery where we’ve invested over $20 billion, and we must protect our interests and investments. By doing so, we also aim to contribute to stabilizing the market and addressing consumer concerns about fuel affordability.”
On December 19, 2024, the Dangote Refinery implemented this reduction, lowering the ex-depot price from ₦970 to ₦899.50 per litre. This move initiated a wave of competitive pricing in the downstream sector, compelling the Nigerian National Petroleum Company Limited (NNPCL) to adjust its own ex-depot price to ₦899 per litre.
In a collaborative effort to make petrol more accessible nationwide, the refinery also partnered with MRS petrol stations to retail petrol at ₦935 per litre. This strategic partnership has received widespread praise from Nigerians, who view the initiative as a step towards affordability and market stabilization.
Aliko Dangote emphasized the transformative impact of the 650,000-barrels-per-day refinery on Nigeria’s oil and gas sector, as well as its potential to significantly reduce the country’s reliance on petroleum imports. He elaborated, “Approximately 40% of Nigeria’s foreign exchange demand is tied to petroleum product imports. By increasing local refining capacity, we alleviate the strain on foreign exchange reserves, which are often depleted due to payments to international suppliers.”
Despite facing criticism, Dangote maintained a resolute stance. He stated, “Criticism is inevitable, but it won’t deter us. No one in Nigeria’s history has invested $20 billion in a single project over the last century. This initiative stems from my patriotism and my desire to leave a meaningful legacy for Nigeria.”
He further remarked, “Had I invested this amount in global tech giants like Google or Apple, the returns would have been substantially higher. However, my love for Nigeria inspired me to take on this challenge, knowing the immense benefits it could bring to the nation.”
Addressing allegations regarding financial support from the NNPC, Dangote dismissed the claims as baseless and inaccurate. He clarified, “The assertion that NNPC provided $1 billion to resolve liquidity issues at the refinery is cheeky and untrue. While NNPC initially planned to invest $1 billion in the project, this amount is minimal compared to the $20 billion investment already made.”
The Vice President of Dangote Industries Ltd., Devakumar Edwin, provided additional updates on the refinery’s operations. He disclosed that the facility is currently refining 350,000 barrels of crude oil per day, with plans underway to achieve its full operational capacity of 650,000 barrels per day. This ensures the refinery will remain a key player in Nigeria’s energy sector for years to come.
Edwin also assured stakeholders that Nigeria’s crude oil production significantly exceeds the refinery’s requirements, guaranteeing a steady and adequate supply for its operations, further solidifying its role in the nation’s economic
transformation.
