Nigeria: Why Petrol Remains Expensive Despite Local Refining - Dangote

What the report says

Dangote Group president Aliko Dangote said Nigerians should not expect domestic refining to automatically bring petrol prices down sharply, arguing that local production still tracks global crude costs and is affected by market disruptions. In remarks reported by Vanguard and shared by AllAfrica, he said the refinery buys crude at prevailing market rates and sometimes pays premiums, which limits how low product prices can go.

Speaking on Arise TV, Dangote also pointed to fuel smuggling into neighboring countries, saying prices outside Nigeria are reportedly much higher. He maintained that the refinery would keep supplying the market and said shortages should not be expected from its operations. The comments come amid continuing public debate over fuel affordability in Nigeria after the start of large-scale local refining.

Beyond fuel pricing, Dangote used the interview to warn that high borrowing costs, unstable policies and weak power supply remain major barriers to industrial growth in Nigeria and across Africa. He argued that governments should protect productive domestic industries rather than rely heavily on imports. As background, his refinery is one of the country’s most closely watched industrial projects, and its pricing has become a reference point in wider discussions about energy, investment and manufacturing policy.