The Nigerian National Petroleum Company Limited (NNPCL) and the Dangote Refinery are at odds over the true cost of petrol, sparking widespread public outrage as Nigerians expected cheaper fuel prices from the newly commissioned refinery.
According to the NNPCL, the state oil company purchased petrol from the Dangote Refinery at a rate of N898 per litre, a figure that immediately raised concerns. However, the Dangote Group contradicted this claim, stating that the refinery sold fuel at an “international price”—without disclosing the actual amount.
In an interview with Bloomberg, Aliko Dangote, the President and CEO of Dangote Group, emphasized that the refinery’s prices were lower than the NNPCL’s importation costs. He noted that the state oil company’s own imports of gasoline were 15 to 20% more expensive than what they bought from the refinery on September 15.
Despite Dangote’s reassurances, the NNPCL placed the pump price between N950 in Lagos, N992 in Abuja and a staggering N1,019 in Maiduguri, which is the farthest distance from the Lagos supply point. This revelation has fueled widespread frustration among Nigerians, who had hoped for more affordable prices following the long-awaited Dangote Refinery’s operations.
Social media platforms were abuzz with reactions, as many Nigerians questioned why fuel prices had not dropped despite the local production. The refinery, celebrated as a game-changer for Nigeria’s oil sector, was expected to ease the country’s reliance on fuel imports and stabilize prices. However, the NNPCL’s announcement has left many disappointed.
In a twist, NNPCL spokesman Olufemi Soneye disclosed that the state oil company paid $120 million for 25 million litres of fuel from Dangote Refinery. However, just before the supply, the refinery informed NNPCL that it could only deliver 16.8 million litres, and it still fell short of that amount.
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This shortfall has led to further scrutiny of the refinery’s operations, as Nigerians await clarification on what caused the supply gap.
In the midst of the fuel price controversy, Aliko Dangote also reflected on his unfulfilled dream of purchasing Arsenal Football Club, one of England’s most prestigious football teams. Dangote admitted to Bloomberg that he regrets not buying the club when it was valued at $2 billion in 2020. However, he explained that his focus was on completing the Dangote Refinery project, which took precedence over his desire to own the football club.
“I regret not buying Arsenal, but my money was more needed for completing the refinery,” Dangote said. “It was either I finished my project or go and buy Arsenal.”
Addressing the January 2024 raid on his company’s Lagos headquarters by the Economic and Financial Crimes Commission (EFCC), Dangote revealed that the visit was intended to cause embarrassment. “They didn’t talk to anybody or arrest anyone. It was just to cause embarrassment,” he said, adding that Dangote Group remains “100% clean” in all its dealings.
With fuel prices soaring across Nigeria, the public is demanding answers. The NNPCL, as the sole off-taker for petrol from the Dangote Refinery, is tasked with implementing President Bola Ahmed Tinubu’s directive to purchase crude oil in naira starting October 1. Yet, as of now, confusion over pricing continues, leaving Nigerians in anticipation of more transparency.
