Nigeria is reportedly considering allowing Aliko Dangote’s refinery to set its own prices for gasoline sales, according to sources familiar with the matter, as reported by Bloomberg.
This move would mark a shift from Nigeria’s historical reliance on imported gasoline, which has been heavily subsidized by the government. With Dangote’s massive refinery near Lagos set to begin local gasoline production next month, the government is expected to permit the refinery to determine prices for petroleum marketers. Officials speaking on the matter requested anonymity due to the sensitivity of the information.
There has been increased public interest in the pricing strategy of the Dangote refinery, especially as Nigerians continue to face rising fuel costs and shortages.
The Dangote Group recently denied rumors suggesting it had set the pump price at ₦600 per litre for marketers. Additionally, when questioned about fuel pricing, Dangote stated that the Federal Executive Council, under President Bola Tinubu’s administration, would make the ultimate decision.
“Being a business designed for profit, Dangote Refinery will certainly not sell its products below market value,” noted government spokesperson Temitope Ajayi. Ajayi added, “I don’t see how NNPC or the federal government can control the price of a private business.”
The petroleum industry regulator’s role will focus on ensuring product quality and fair pricing to prevent the business from exploiting citizens, according to Ajayi.
