The move is to reshape Nigeria’s downstream oil market
Starting Monday, September 15, 2025, the Dangote Refinery will commence direct petrol supply to 11 Nigerian states.
Petrol will be sold at an ex-gantry price of ₦820 ($0.546) per litre, with free delivery to registered fuel stations. This service is expected to expand nationwide as the company deploys its fleet of 4,000 compressed natural gas trucks.
According to billionaires.africa, the initiative aims to reshape Nigeria’s downstream petroleum sector.
The first direct retail supply will come from the Lagos mega-refinery, with recommended pump prices set at ₦841 ($0.56) per litre for Lagos, Ogun, Oyo, Ondo, Osun, and Ekiti, and ₦851 ($0.567) per litre for Abuja, Delta, Rivers, Edo, and Kwara.
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The investment is projected to move up to 65 million litres of petrol daily and create approximately 15,000 jobs. Fuel costs are expected to drop by more than ₦1.7 trillion ($1.13 billion).
The announcement follows tensions with the Nigeria Petroleum Products Retail Outlet Owners Association, which had threatened to halt sales, warning that the rollout could distort market competition. Other unions, including the Nigerian Union of Petroleum and Natural Gas Workers, staged a two-day strike before suspending action under an agreement brokered by the Department of State Services.
The deal, signed by Dangote executives, union leaders, and regulators, requires the unionisation of willing refinery employees by September 22 and prohibits retaliation against striking workers.
Located in Ibeju-Lekki, the facility is Africa’s largest single-train refinery, capable of processing 650,000 barrels of crude oil per day. It has already begun sourcing crude under Nigeria’s naira-for-crude policy.
The refinery aims to stabilise fuel supply, revive shuttered stations, and challenge the dominance of the Nigerian National Petroleum Company (NNPC) in retail pricing by entering the petrol sales market directly.
SA/MA
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