Kehinde Fajobi
Aliko Dangote, President of Dangote Industries Limited, has attributed the recent petrol price reduction at the Dangote Refinery to market dynamics, emphasising the need to protect the multibillion-dollar investment.
“The price reduction is a response to the market, let me just put it that way,” Dangote said in an interview on an Arise TV documentary, adding, “It is a refinery where we invested over $20bn, and I think we have to try and protect our interests and also our investments.”
On December 19, the refinery reduced its ex-depot petrol price from ₦970 to ₦899.50 per litre, spurring competition in the downstream sector.
This led the Nigerian National Petroleum Company Limited (NNPCL) to lower its own ex-depot price to ₦899 per litre.
Additionally, Dangote Refinery partnered with MRS Petrol to sell petrol at ₦935 per litre nationwide.
Dangote stressed the transformative potential of the 650,000 barrels-per-day refinery for Nigeria’s oil sector and broader economy, particularly in reducing reliance on foreign exchange for petroleum imports.
“Forty per cent of our demand on foreign exchange is through people dealing in petroleum products,” he explained, warning that continued imports would drain the country’s reserves.
The billionaire entrepreneur acknowledged criticisms of the project but stood firm.
“Criticism will not stop us from continuing with what we are doing. I did this project because of my love for my country and to make sure that I have a legacy project,” he said, describing the venture as driven by patriotism rather than profit.
Reflecting on the refinery’s financing, Dangote dismissed claims that NNPC’s $1bn investment was a bailout.
“In a $20bn refinery, $1bn is a drop in the ocean,” he clarified, calling allegations of liquidity crises “nasty” and “a bunch of lies.”
Vice President of Dangote Industries, Devakumar Edwin, revealed the refinery is currently refining 350,000 barrels of crude daily, with plans to reach its full capacity of 650,000 barrels soon.
Edwin assured Nigerians that the country’s crude production far exceeds the refinery’s needs.