Table of Contents
Key Points
- Dangote refinery cut petrol price by $0.0195 per liter, lowering Nigeria’s pump price to $0.534 amid global crude price drops.
- The $20 billion refinery processes 500,000 barrels daily, aiming for 700,000 barrels by late 2025, reducing Nigeria’s fuel import reliance.
- Aliko Dangote’s net worth rose to $29.3 billion as his refinery boosts Nigeria’s energy independence and Africa’s industrial growth.
Aliko Dangote, Africa’s richest man, has once again lowered petrol prices in Nigeria, providing some relief to millions of consumers. This comes amid favorable shifts in the global energy market and a notable drop in international crude oil prices.
On Aug. 12, Dangote Petroleum Refinery announced a 3.3 percent cut in the ex-depot price of Premium Motor Spirit (PMS), or petrol, reducing it by N30 ($0.0195) from N850 ($0.553) to N820 ($0.534) per liter. Since the start of 2025, petrol prices have dropped nearly 14 percent, from N950 ($0.618) to N820 ($0.534).
Dangote cuts Nigeria’s fuel imports
Dangote Group, one of Africa’s largest manufacturing companies, Aliko Dangote is helping Nigeria reduce its long-standing dependence on imported fuel. This shift is reshaping Africa’s fuel market, South Africa recently overtook Nigeria as the continent’s largest fuel importer.
The $20 billion Dangote Petroleum Refinery, which began operations last year, has quickly become a key part of Nigeria’s energy sector. By cutting the need for imported fuel, it has pushed European refiners to find new markets and positioned Nigeria as a net exporter of refined products like jet fuel, naphtha, and fuel oil. Since launching, production has steadily increased.
By mid-2024, the refinery processed 350,000 barrels per day, rising to 500,000 barrels per day in January 2025. It is set to reach its full capacity of 650,000 barrels per day next month, making it one of the world’s largest refineries. An upgrade is also planned to add another 50,000 barrels per day by late 2025.
Refinery capacity to increase
Though the refinery won’t operate at full capacity this year due to ongoing upgrades, there is strong confidence in its continued growth. Plans are in place to eventually increase capacity to 700,000 barrels per day, which would further enhance its global standing.
This latest price cut is expected to increase competition among fuel marketers, many of whom still rely heavily on imports. The company has assured Nigerians that petroleum supplies will remain steady, with enough reserves to meet both domestic and export demands, strengthening the country’s place in the global oil market.
Dangote’s net worth hits $29.3 billion
With a net worth of $29.3 billion according to Bloomberg, Aliko Dangote is close to becoming the first African to reach $30 billion. Beyond his wealth, the refinery marks a major step forward for African industrial growth—turning local crude into refined products, supporting energy independence, and boosting regional trade.
