In a significant development on Tuesday, Nigerian billionaire Aliko Dangote disclosed that the Federal Executive Council (FEC) is working on a new pricing arrangement for petrol produced by the Dangote Refinery. The 650,000-barrel-per-day facility, which marked the launch of its refined petrol this week, is set to have its products available at filling stations within the next 48 hours, contingent on the country’s distribution network.
Discussing the retail pricing strategy, Dangote explained, “It is an arrangement which is designed and approved by the Federal Executive Council led by His Excellency, President Bola Ahmed Tinubu. As soon as it is finalised—which President Tinubu is pushing for—once we conclude discussions with the Nigerian National Petroleum Corporation (NNPC), we are ready to roll into the market. This could happen today or tomorrow.”
Dangote further emphasized that this new development is poised to reduce the country’s demand for foreign exchange by 40%. He expressed gratitude to the people of Nigeria and the Tinubu administration for fostering an environment that enabled such economic strides. “I want to thank President Bola Tinubu for the innovative approach of trading in Naira for crude and Naira for refined products. This strategy will greatly stabilise the Naira and reduce the need for dollars by 40%. Moreover, it will curb the practice of round-tripping,” Dangote added.
The new pricing model is expected to bring about significant changes in Nigeria’s energy market, contributing to both economic growth and currency stability.
