In a significant development for Nigeria’s downstream oil sector, the Dangote Petroleum Refinery has credited the Federal Government’s naira-for-crude oil exchange policy for its ability to reduce and stabilise the price of petrol in the domestic market. The announcement comes as Nigerians continue to grapple with inflation and energy cost volatility.
In a statement released on Monday by the Group Chief Branding and Communications Officer, Anthony Chiejina, the company reaffirmed its commitment to keeping petrol prices affordable, even amidst fluctuating global crude oil benchmarks. The refinery noted that the naira-for-crude arrangement initiated under President Bola Tinubu’s administration has made it financially sustainable to cut petrol prices without compromising product quality or operational efficiency.
“We are immensely grateful to President Bola Tinubu for making this possible through the commendable naira-for-crude initiative, which has enabled us to consistently reduce the price of petroleum products for the benefit of all Nigerians,” the statement read.
The naira-for-crude exchange model allows local refiners like Dangote to pay for crude oil in the local currency rather than in U.S. dollars, thereby reducing the strain on foreign reserves and ensuring cost savings that can be passed on to consumers. The deal aligns with the Federal Government’s ‘Nigeria First Policy’, which encourages the consumption of locally refined petroleum products to promote economic self-reliance and reduce dependence on imports.
The company further stressed that despite global oil market volatility, it remains focused on delivering price stability, a development many consumers and stakeholders see as a welcome relief. Since commencing operations, the $19 billion Dangote Refinery—touted as the world’s largest single-train refinery—has emerged as a potential game changer in Nigeria’s petroleum supply chain, with a refining capacity of 650,000 barrels per day.
“By refining petroleum products domestically at the world’s largest single-train refinery, we are proud to make a substantial contribution to Nigeria’s energy security, foreign exchange savings, and overall economic resilience—aligning with President Bola Tinubu’s Renewed Hope Agenda,” Chiejina said.
Industry experts have noted that the refinery’s pricing strategy could have wider implications for inflation management, logistics costs, and general economic activity. Already, the move is being interpreted as a strong signal to international investors about the viability of Nigeria’s energy market under private-led reforms.
The Dangote Group has also pledged continued collaboration with the Federal Government to ensure that the country’s refining capabilities serve the broader public interest. The company highlighted its ongoing investment in modern infrastructure, safety standards, and compliance with global environmental benchmarks.
“Dangote Petroleum Refinery remains committed to ensuring that the benefits of our local refining capacity are fully realised and enjoyed by the Nigerian populace. We will continue to prioritise affordability, quality, and national interest in every facet of our work,” the statement added.
The announcement has sparked a wave of optimism across sectors, with consumer advocacy groups calling for similar transparency from other players in the energy value chain. Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reiterated its support for policies that favour local refining and consumer-friendly pricing.
The naira-for-crude framework is also expected to reduce Nigeria’s reliance on costly fuel imports, especially as the state-owned refineries in Port Harcourt, Warri, and Kaduna continue to face delays in their turnaround maintenance efforts. Recently, stakeholders such as the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) expressed concern that government refineries were yet to meet domestic supply expectations—underscoring the importance of private refiners like Dangote in stabilising the market.
As Nigerians anticipate broader access to cheaper, locally refined fuel, Dangote’s assurance offers a rare glimmer of hope in an economy weighed down by currency devaluation and high transportation costs. The company’s ongoing pricing strategy, if sustained, could redefine fuel economics in Nigeria and the West African sub-region.