Nigeria: Dangote refinery cuts petrol prices by 13

Aliko Dangote, African tycoon and architect of the continent's largest oil refinery, has announced a further reduction in petrol prices, the second in a month, consolidating his grip on the Nigerian energy market. Effective from 27 February 2025, this 7.3% cut will reduce the price of petrol leaving depots from 890 naira ($0.59) to 825 naira ($0.55) per litre, bringing the total reduction since January to 13.16%. It's a move that will bring relief to consumers, while confirming Nigeria's rise as a key player in the refining industry.

Inaugurated after a colossal investment of more than $23 billion, the Dangote refinery is poised to transform Nigeria into a net exporter of refined fuels. Growing from 350,000 barrels per day (bpd) in mid-2024 to 500,000 bpd in January 2025, it will soon reach its full capacity of 650,000 bpd, making it the seventh largest refinery in the world. This ramp-up has reduced dependence on imports to its lowest level in eight years, according to Vortexa, while opening up regional outlets for diesel, petrol and aviation fuel.

The impact is already palpable: Nigeria now exports to Cameroon, Ghana, Angola, South Africa and even Saudi Aramco, marking a break with decades of massive imports despite its vast oil reserves. This emerging self-sufficiency is also forcing European refiners to rethink their strategies in the face of the loss of a historic market.

The new pricing increases the pressure on import-dependent distributors. In Lagos, petrol will be sold at 860 naira ($0.57) per litre at MRS Holdings, while prices will fluctuate between 865 and 895 naira in other regions via AP and Heyden, depending on logistics costs. Dangote has assured that its reserves guarantee a stable supply, meeting local demand while supporting exports.

This drop, which reflects the fall in world crude oil prices, is of direct benefit to Nigerian consumers, easing the burden on households and businesses in a tense economic climate. It also illustrates the increasing efficiency of the refinery, whose production costs are being optimised as its capacity increases.

Building this mega-refinery has not been without its challenges: technical delays, logistical obstacles and budget overruns have pushed the initial investment from $20 billion to more than $23 billion. However, Aliko Dangote's aim of making Nigeria self-sufficient in fuel is becoming a reality. The addition of eight new tanks, bringing crude storage capacity to 3.4 billion litres (+41.67%), further strengthens this ambition.

By overturning a model in which Nigeria imported 100% of its fuel despite its status as an oil giant, the Dangote refinery is redefining the national economy. Exports are boosting foreign exchange earnings, while lower domestic prices are stimulating the transport and industrial sectors. It remains to be seen whether competitors will fall in line, or whether this dynamic will signal a complete overhaul of the local market.

With this new step, Aliko Dangote is not content to simply reduce prices: he is laying the foundations for an energy sovereign Nigeria, ready to extend its influence beyond its borders.