Aliko Dangote, Chairman of the Dangote Group, has revealed that Nigeria’s pump price for petrol remains significantly lower than the West African regional average—by as much as 55 percent—despite market reforms and ongoing currency pressures.
Speaking during a press briefing at the Dangote Refinery in Lagos on Monday, the billionaire industrialist noted that while neighbouring countries are paying between $1.30 and $1.60 per litre, Nigerians currently purchase petrol for roughly $0.74 per litre (about ₦700 at current exchange rates).
“Our data shows that Nigeria’s petrol pricing is 55 percent below the West African average,” Dangote said. “This disparity raises questions about long-term sustainability, especially when most of our neighbouring countries have fully deregulated their petroleum markets.”
The Dangote Refinery, which began limited production earlier this year, is expected to play a key role in stabilizing local fuel supply and reducing import dependence. However, Dangote emphasized that appropriate pricing structures must be implemented to ensure the refinery’s viability and long-term impact on the economy.
He urged the Nigerian government to take bold steps toward full deregulation, allowing market forces to determine prices while cushioning the impact on low-income consumers through targeted subsidies or palliatives.
Industry experts have echoed Dangote’s concerns, warning that maintaining artificially low petrol prices could undermine investment in the downstream sector and discourage private-sector participation.
Despite the affordability for Nigerians, the current pricing model has led to a surge in cross-border smuggling, as unscrupulous actors exploit the price gap between Nigeria and its neighbours.
Government officials have yet to respond to Dangote’s remarks, but policy analysts say the comments could reignite national debate over subsidy reforms and fuel pricing transparency
