Dangote says petrol still too cheap in Nigeria, raising price hike fears

Africa’s richest man, Aliko Dangote, says petrol remains too cheap in Nigeria, even after prices have surged more than fourfold in three years.

Speaking on Sunday, the president of Dangote Industries Limited said that, despite recent hikes, Nigeria’s pump prices are still among the lowest globally and far below those of neighbouring countries.

“Nigerians today buy petrol at roughly half the price of what our neighbours pay, and it is even cheaper than in Saudi Arabia,” Dangote said, according to Channels TV. “Our product is of higher quality, meeting Euro VI standards, and it has significantly reduced the dumping of toxic fuel into our market.”

His comments come as retail prices hover between ₦800 and ₦900 per litre, down from over ₦1,000 earlier this year, but still far above the ₦189 level of early 2023. Industry analysts say Dangote’s remarks may foreshadow a gradual market-driven adjustment once the refinery fully dominates local supply.

Despite the underlying warning, Dangote assured Nigerians of steady fuel supply during the festive season, saying prices will not rise for now even amid an 8% spike in global oil prices over the past week.

“For the first time in many years, Nigerians can look forward to a Christmas and New Year free of fuel anxiety,” he said.

Refinery Expansion

Dangote also announced plans to expand the $20 billion Lagos refinery from 650,000 barrels per day to 1.4 million bpd, which would make it the world’s largest refining complex.

“This expansion is not just about capacity; it is about confidence — in our people, in our government, and in our continent,” he said.

The new phase, to be executed over three years, will be financed through internal cash flow, strategic investors, and a planned listing on the Nigerian Exchange (NGX) to broaden ownership.

The refinery will also boost production of polypropylene, base oils, and detergent ingredients, while adding 1,000 megawatts of power for operational self-sufficiency.

Dangote said the project will help stabilize the naira, save billions in import costs, and generate $55 billion in annual revenue, making it one of Africa’s most valuable industrial assets.

“When Africa builds its own capacity, it builds its own destiny,” Dangote said.

Analysts say the refinery’s dominance could eventually shape a more market-reflective fuel pricing system, meaning Dangote’s comment that petrol is still “too cheap” may not be just a statement of fact — but a signal of what’s to come.