President of Dangote Group, Alhaji Aliko Dangote, has defended the surge in petrol prices to N945 per litre, describing it as a necessary adjustment driven by Nigeria’s foreign exchange challenges and dollar-dependent operations. Speaking at the Annual General Meeting (AGM) of Dangote Cement Plc in Lagos today, Dangote also disclosed that the group will soon begin free distribution of petroleum products to end users as a short-term relief measure.
The announcement comes on the heels of the Nigerian National Petroleum Company (NNPC) Limited’s revised petrol pump prices upward across its stations nationwide. The price hike has triggered mixed reactions, but Dangote insists it reflects the economic reality facing local refiners and marketers.
“Everything we buy, from equipment to raw materials, is in U.S. dollars, yet we sell our products in naira,” he said. “Even if we sell a litre of petrol at one dollar, it’s still better than the current situation where the price is below a dollar. It’s simply unsustainable.”
In a move aimed at softening the impact on consumers, Dangote revealed that his group is preparing to distribute refined petroleum products free of charge to end users in the near future. According to him, this initiative could be more effective than a price cut, especially in a market already strained by inflation and currency instability.
“We have agreed as a group to begin free distribution of our petroleum products to end users very soon. This will provide direct relief to Nigerians rather than relying solely on price reductions,” he stated.
Dangote also expressed gratitude to President Bola Ahmed Tinubu for approving the sale of crude oil to local refineries in naira instead of dollars, a policy shift he described as “an act of sympathy” that has helped avert deeper economic distress.
“If not for that decision, the situation would have been treble by now. Despite recent signs of forex stability, we are still grappling with inflation and other cost pressures,” he said.
The Dangote Refinery, which recently commenced operations with domestic crude supply, is expected to play a significant role in reducing Nigeria’s reliance on imported refined products. However, its operations remain exposed to global financial realities due to its dollar-based infrastructure and sourcing.
As independent marketers prepare to align with the new pricing structure, industry stakeholders are closely watching how Dangote’s proposed free distribution scheme will be implemented and whether it can provide meaningful short-term relief in a challenging economic environment.
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