Nigeria is exploring a potential policy change that would allow billionaire Aliko Dangote’s refinery to set its own gasoline prices, marking a significant shift in the country’s fuel pricing system. The move could refashion the government’s long-standing control over fuel prices.
As Africa’s largest oil producer, Nigeria has historically imported its gasoline, subsidizing the cost for consumers. However, with Dangote’s refinery set to start local production, the government plans to grant the company autonomy to set prices for petroleum marketers.
Officials revealed that this decision comes as Nigeria faces gasoline shortages due to debts incurred from past subsidies. By allowing Dangote to determine market-based prices, the country aims to alleviate fuel shortages and move toward economic sustainability.
The Dangote Refinery, once fully operational, is expected to produce 330,000 barrels of gasoline daily, exceeding domestic demand and positioning Nigeria as a key player in global oil markets.