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Africa’s richest man, Aliko Dangote, through his $20 billion refinery, will start direct petrol deliveries to 11 Nigerian states from Sept. 15 at an ex-gantry price of N820 ($0.546) a liter, with free distribution to registered stations.
In a move to reshape Nigeria’s downstream oil market with the first direct retail supply from the Lagos mega-refinery, the company has set recommended pump prices at N841 ($0.56) per liter for Lagos, Ogun, Oyo, Ondo, Osun, and Ekiti, and N851 ($0.567) per liter for Abuja, Delta, Rivers, Edo, and Kwara.
Rollout details amid policy backdrop
The launch follows months of preparatory delays and a shift from the initial August timeline. To support retailers, Dangote Petroleum Refinery said it will provide free delivery of petrol to registered stations across the 11 states, expanding nationwide as its 4,000 compressed natural gas trucks are deployed.
The investment is designed to move up to 65 million liters daily, create 15,000 jobs, and reduce annual fuel costs by more than N1.7 trillion ($1.13 billion), according to company estimates. The announcement comes after weeks of labor unrest. The Petroleum Products Retail Outlet Owners Association of Nigeria had threatened to halt sales, warning the rollout would distort competition.
The Nigerian Union of Petroleum and Natural Gas Workers staged a two-day strike before suspending action under a Department of State Services-brokered agreement. The deal, signed by Dangote executives, union leaders, and regulators, requires unionization of willing refinery employees by Sept. 22 and bars victimization of striking workers.
Broader strategy
For Dangote, whose wealth Bloomberg tracks at $28.9 billion, control over distribution is central to his refinery’s long-term viability. The Ibeju-Lekki facility, Africa’s largest single-train plant, is capable of processing 650,000 barrels per day and has already begun sourcing crude under Nigeria’s naira-for-crude policy.
The refinery wants to stabilize supply, bring back stations that have been closed, and challenge the state oil company's (NNPC) dominance in retail pricing by getting directly involved in petrol sales. For Nigeria making sure that there is a steady supply of domestically refined goods is important for lowering its multibillion-dollar import bill.
There are still risks, though. Labor disputes, complaints from competitors, and government intervention could all slow the rollout and see if Dangote's refinery can deliver on its promise of cheaper, more reliable fuel for Africa's biggest economy.
