In what industry analysts have described as a major relief for Nigerian motorists and businesses, the Dangote Petroleum Refinery has slashed the pump price of petrol by ₦259 per litre, marking one of the most significant drops in recent years.
Africa’s richest man, Alhaji Aliko Dangote, disclosed this while addressing journalists on Monday, September 15, during the refinery’s first-year anniversary celebration in Lagos. He announced that the price of Premium Motor Spirit (PMS), which averaged around ₦1,100 per litre before the refinery began operations, has now fallen to ₦841 per litre across several states including Lagos, Abuja, Delta, Rivers, Edo, and Kwara.
“Despite opposition and several economic headwinds, our refinery has successfully reduced petrol prices nationwide,” Dangote said. “With the introduction of CNG-powered trucks, this reduction will soon reflect across every part of the country.”
The billionaire industrialist added that his refinery — which currently refines 650,000 barrels of crude oil per day — plans to scale up to 700,000 barrels daily by next year. According to him, this expansion will not only meet Nigeria’s domestic demand for petrol but also generate foreign exchange through exports to neighboring countries.
Direct Fuel Distribution and Job Creation
As part of its growing footprint, the refinery has deployed 1,000 Compressed Natural Gas (CNG) trucks to strengthen its direct fuel distribution network. The move, Dangote noted, will create over 24,000 new jobs in its first operational phase and drastically cut transportation and logistics costs in the energy supply chain.
Between June and early September alone, the refinery reportedly exported over 1.1 billion litres of refined petrol, solidifying Nigeria’s emergence as a potential net exporter of refined products.
Overcoming Opposition and Fuel Crisis
Dangote also addressed criticism from the National Union of Petroleum and Natural Gas Workers (NUPENG) and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), both of which have raised concerns over market control and labour unionization at the refinery.
“We’ve been battling fuel queues since 1975, but Nigerians are now witnessing a new era of energy stability,” he said. “This project was designed to make both our country and continent proud.”
He emphasized that the refinery aligns with the Federal Government’s vision of building a $1 trillion economy by 2031, urging more Nigerian investors to look inward and support local industrialization.
Experts Weigh In
Energy economist Obakhume Abidemi Kaseem described the price crash as a “welcome development,” though he noted that factors such as global crude oil prices and exchange rate volatility will continue to influence domestic fuel costs.
“The price of Brent crude currently stands at about $68 per barrel, while the naira trades at roughly ₦1,530 to a dollar,” Kaseem explained. “These two variables remain critical in determining how much Nigerians will ultimately pay for petrol.”
He also applauded Dangote’s adoption of CNG-powered vehicles, describing it as a strategic move that will cushion the impact of rising logistics expenses.
NUPENG–Dangote Agreement
Meanwhile, NUPENG has confirmed reaching an agreement with Dangote Refinery and Petrochemicals Limited, following a federal government–mediated dialogue chaired by Labour Minister Muhammad Maigari Dingyadi.
According to the terms, the process of unionization within the refinery’s workforce will begin immediately and conclude between September 9 and 22, 2025. Representatives from both NUPENG and the Nigeria Labour Congress (NLC) were in attendance, alongside senior officials from the Dangote Group.
A New Dawn for Nigeria’s Energy Sector
With this development, analysts say Nigeria may finally be turning a corner in its long and painful struggle with fuel importation, scarcity, and arbitrary pricing. The Dangote Refinery — the largest single-train refinery in the world — appears poised to redefine the petroleum landscape of not just Nigeria, but the entire African continent.
As Dangote put it:
“What we’ve done is more than just build a refinery — we’ve built confidence that Nigeria can solve its own problems.”
Reporter: Coolnews Nigeria Business Desk
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