Petrol will sell for as low as ₦740 per litre in parts of Nigeria from Wednesday after Aliko Dangote’s refinery cut its ex-depot price, intensifying pressure on fuel importers and the state-owned Nigerian National Petroleum Company to follow suit.
Aliko Dangote, Africa’s richest man and president of Dangote Industries Limited, called for an investigation into Nigeria’s downstream petroleum regulator, accusing it of actions he said undermine domestic refining and keep fuel prices artificially high.
Speaking at a press conference on Sunday at the Dangote Petroleum Refinery outside Lagos, Dangote alleged that the leadership of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) was colluding with international traders and fuel importers by continuing to issue petrol import licences despite growing local refining capacity.
“I am not calling for Farouk Ahmed’s removal, but for a proper investigation. He should be required to account for his actions and demonstrate that he has not compromised his position to the detriment of Nigerians. What is happening amounts to economic sabotage,” Dangote said.
Farouk Ahmed is the chief executive of the NMDPRA.
Volatile Market
Nigeria’s fuel market has been volatile since President Bola Tinubu removed petrol subsidies in May 2023, triggering sharp price increases across the country. Pump prices climbed from below ₦200 per litre to over ₦1,000 in many cities as the naira weakened and imports became more expensive. The government has since relied on market forces, with refiners and marketers adjusting prices in line with costs.
The $20 billion Dangote Refinery, one of the largest in the world, has gradually reduced petrol prices since it began supplying the domestic market. Dangote said the refinery has now cut its gantry price to ₦699 per litre, a move that will lower retail prices further.
From Wednesday, petrol will sell at no more than ₦740 per litre at MRS filling stations in Lagos, he said. MRS is the refinery’s key retail partner.
In Abuja, where pump prices currently hover around ₦945 per litre and above, the reduction is expected to cascade through the market. State-owned Nigerian National Petroleum Company (NNPC) Ltd. would have little choice but to adjust prices to remain competitive, industry analysts say.
“So if you come to the refinery today, you will get PMS at ₦699 per litre,” Dangote said.
Farouk Ahmed, chief executive of NMPDRA
$5 Million School Fees
Dangote said Nigeria’s continued dependence on imported fuel was discouraging investment in local refining and hurting the broader economy. He disclosed that import licences covering about 7.5 billion litres of petrol had been issued for the first quarter of 2026, despite what he described as sufficient domestic capacity.
According to him, the policy environment is pushing modular refineries to the brink.
“Forty-seven licences have been issued, yet no new refineries are being built because the environment is not conducive,” he said.
Dangote also raised personal allegations against the regulator’s leadership, calling for scrutiny by anti-corruption agencies.
“The Code of Conduct Bureau, or any other body deemed appropriate by the government, can investigate the matter. If he denies it, I will not only publish the tuition he paid at those secondary schools, but I will also take legal steps to compel the schools to disclose the payments made by Farouk. I sent my own children to secondary schools here in Nigeria. How many Nigerians can afford to pay five million dollars for secondary school tuition, not university education? In his home state of Sokoto, many parents are struggling to pay as little as ₦10,000 in school fees,” Dangote said.
The head of the regulatory agency, Ahmed, could not be immediately reached.
Entrenched interests
He described the downstream oil sector as dominated by entrenched interests that profit from imports, warning that regulatory capture would erode confidence in Nigeria’s energy transition.
“There are powerful interests in the oil sector. It is troubling that African countries continue to import refined products despite long-standing calls for value addition and domestic refining. The volume of imports being allowed into the country is unethical and does a disservice to Nigeria,” he said.
Asked about concerns that marketers will suffer losses with his refinery’s new price, Dangote said the refinery was built for the benefit of Nigerians, and has the capacity to meet local demands. He said those still preferring to import fuel should be ready to bear the consequences.
“Anyone who chooses to continue importing despite the availability of locally refined products should be prepared to face the consequences,” he said.
He added that the refinery was reducing barriers for smaller marketers by cutting its minimum purchase requirement to 500,000 litres from two million litres, allowing independent marketers to buy directly. The company also plans to deploy compressed natural gas-powered trucks nationwide to support distribution.
Dangote defended the refinery’s fuel quality, saying locally supplied petrol was superior to imports.
“Nigerians have a choice to buy better quality fuel at a more affordable price or to buy blended PMS at a higher rate. Importers can continue to lose, so long as Nigerians benefit,” he said.
He said the refinery was driven by long-term national interest rather than short-term profit, noting that the $20 billion investment could have been deployed elsewhere. Dangote disclosed plans to list the refinery on the Nigerian Exchange to broaden local ownership.
“We want every living Nigerian to have the opportunity to benefit, no matter how small their holding. If the market takes 55 per cent and I retain 45 per cent, I am satisfied,” he said.
Dangote also accused the regulator of misrepresenting the refinery’s output by publishing offtake figures instead of actual production levels.
“We have the capacity to meet local demand, and we have sufficient refined products in stock. But to keep prices high, imports are deliberately encouraged,” he said, adding that efforts were being made to push the refinery into exporting fuel only for it to be re-imported at higher prices.
“This refinery is for Nigerians first, and I am not giving up,” he said.
Dangote disclosed that the refinery imports about 100 million barrels of crude oil annually from the United States – a figure expected to rise to 200 million barrels after expansion – due to limited domestic supply. The refinery also sources crude from Ghana and exports jet fuel and gasoline to the U.S.
He further alleged that domestic refiners are forced to buy Nigerian crude at premiums of up to $4 per barrel from trading arms of international oil companies, eroding their competitiveness, and called for reforms to crude pricing and tax assessment to prevent revenue losses.
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