Key petroleum products marketers in Nigeria have reportedly struck a deal with notable global gasoline suppliers to bring in products that are “far more cheaper” than what is presently available at retail outlets.

Report has it that the deal will lead to selling “Premium Motor Spirit (PMS)” also called petrol at about “N700 per litre.”

An “impeccable source” close to the deal confirmed to our correspondent that the “landing cost” would be at about “N650 per liter.” Petrol retailer associations are “jolted with the deal” and are positioning their businesses to thrive with “alternative sourcing of products.”

Billy Gillis-Harry, National president of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), speaking on “alternative products sourcing,” said marketers are “keen to make procurement of products from the international market.” He said this has become a “surviving situation” for them as “Dangote refinery price fluctuations have crumbled their business.”

“We want predictive market information that allows marketers to plan and project investment. We are currently indebted to banks because we buy products and before it gets to our retail outlets the price has changed and we incur losses.

“So we want refineries to work and give us supply, then we import when their products are high and then depot owners will keep their depot open and marketers will have open market operations,” he said.

He warned that if the situation is “not well managed,” queues will return. This, he said, is because most marketers “cannot buy products after incurring losses.”

“I have an allocation as of today but I cannot buy it because I don’t have the money. The ones procured from Dangote refinery is becoming bad business because we buy at a particular rate and suddenly before we exhaust the products the refinery would crash the price.

“We are gradually being forced out of the market, so we are engaging our foreign partners to bring products that are more affordable,” he said.

Gillis-Harry expressed fears of “possible scarcity of diesel” on the information that “Aradel refinery is not producing at the moment.” Aradel Holdings Plc operates an “11,000 barrels per day (bpd) refinery” at its “Ogbele asset.”

This refinery produces a variety of refined products including “Automotive Gas Oil (AGO), Marine Diesel Oil (MDO), and Naphtha.” Aradel also plans to “expand into Liquefied Petroleum Gas (LPG) and Premium Motor Spirit production.”

The refinery’s capacity has been a “key factor in Aradel’s growth,” with “increased refined volumes” and a “rise in revenue.” In “2022,” the refinery business accounted for “77 per cent of Aradel’s revenues,” with a “significant increase in refined volumes sold.”

However, a “source in Aradel denied the information” saying the refinery is “producing within its nameplate of about 11,000 barrels a day.”

Meanwhile, Aliko Dangote, President of Dangote Group, has reiterated his “longstanding position” that Africa’s “continued dependence on imported goods is unsustainable” and “hinders economic sovereignty.”

“As long as we continue importing what we can produce, we will remain underdeveloped,” Dangote said. “This refinery is proof that we can build for ourselves at scale, to global standards.”

Dangote said this during a “high-level visit to the state-of-the-art 650,000 barrels-per-day facility,” by the “President of the ECOWAS Commission, H.E. Dr Omar Alieu Touray.” He said the Refinery is “fully equipped to meet the petroleum needs of Nigeria and the entire West African region,” countering claims that the facility “would not produce enough for local and regional demand.”

“There have been many claims suggesting that we don’t even produce enough to meet Nigeria’s needs, so how could we possibly supply other West African countries? But now, they are here to see the reality for themselves and, more importantly, to encourage other nations to embark on similarly large-scale industrial projects,” he said.

Noting that Africa will “benefit greatly by encouraging trade among its countries,” especially through “value addition to the continent’s abundant resources,” Dangote stressed how the refinery has “helped Nigeria to bring down the cost of refined products” and “production costs across many sectors of the economy.”

“Last year, when we began diesel production, we were able to reduce the price from N1,700 to N1,100 at a go, and as of today, the price has crashed further. This reduction has made a significant impact across various sectors. It has supported industries, benefited those of us in mining, and provided vital relief to the agricultural sector. The effect has been far-reaching,” he said.

He also noted that “Nigerians are benefiting from local refining” as the “price of petrol has dropped significantly” compared to “neighbouring countries.”

“In neighbouring countries, the average price of petrol is around $1 per litre, which is N1,600. But here at our refinery, we’re selling at between N815 and N820. Many Nigerians don’t realise that they are currently paying just 55 per cent of what others in the region are paying for petrol. We also have a much larger initiative in the pipeline, something we’ve not yet announced but Nigerians should know that this refinery is built for them, and they will enjoy the maximum benefit from it,” he said.

He emphasized that this “price reduction is a direct result of local refining,” which “continues to improve fuel affordability” while “enhancing energy security” and “reducing dependence on imports.”

Touray declared the refinery a “beacon of hope for Africa’s future” and a “clear demonstration of what the private sector can achieve” in the “drive for regional industrialization.”

Aliko Dangote, the President of the Dangote Group and founder of the Dangote Petroleum Refinery, says there will be an announcement of what he calls a “major ‘shakedown’ in the entire country soon.”

Dangote said this was “not about price reduction,” but the “complete overhaul of the downstream sector.” He stated this in an interview with newsmen following the “recent visit of President Bola Tinubu to the $20bn refinery in Lekki, Lagos.”

Asked to mention the ‘big thing’ he had in store for Nigerians with the refinery, Dangote replied, “Now that the President has visited and he has given us additional energy, we will inform you, you will hear from us soon, and that will be one of the major shakedowns in the entire country. It is not the reduction of price, it will be the total overhaul of the downstream.”

Dangote, who refused to let the cat out of the bag, noted that the company would go on a “massive trajectory” with the refinery.

“I told the President that he had not seen anything yet, we are going on a massive trajectory, much more than what you have seen here. If you come back in the next five years, the refinery will be on the back burner,” he stated

The businessman also restated that the refinery would be “listed on the stock exchange market,” starting with the “fertiliser company this year.”

He acknowledged the “impact of President Tinubu’s economic policies,” saying “recent reforms had fostered a more conducive environment for industrial growth and long-term investment.”

Dangote also expressed appreciation for President Tinubu’s ‘Nigeria First Policy’, which aimed to “reduce dependence on foreign goods and services” by “prioritizing local content in investment decisions, business operations, and consumer behavior.”

He remarked that this policy “aligned with the Dangote Group’s corporate vision” of “producing what the nation consumes” and “fostering self-sufficiency” to “meet the basic needs of Nigerians.”

He also commended the administration’s “significant improvements in national infrastructure through initiatives such as the Nigerian Road Infrastructure Development Fund and the Refurbishment Investment Tax Credit Scheme.”

He noted that under these schemes, “eight major roads” – including the “Lekki-Epe corridor” – had been “awarded within the same cluster at a cumulative cost of N900bn.”

According to Dangote, the “petroleum refinery” was one of several “strategic initiatives by the Dangote Group” in support of the “Federal Government’s Renewed Hope Agenda,” which sought to “reposition Nigeria as a regional manufacturing hub.”

“Our objective is to produce domestically those goods that have historically been imported, despite our abundant natural resources. It is on record that our investment in cement manufacturing made Nigeria self-sufficient in that sector, ending cement importation and turning the country into a net exporter.

“We achieved the same in fertiliser production, as Nigeria is now self-sufficient and exports the surplus, thereby generating valuable foreign exchange. We have also commenced exportation of refined petroleum products to several countries, including the United States and Saudi Arabia, among others,” he added.

Dangote noted that the refinery “offered extensive benefits to the Nigerian economy and its people,” declaring that the “days of long fuel queues were over in Nigeria.”

“We remain steadfast in our commitment to contributing meaningfully to Nigeria’s economic transformation, supporting your administration’s efforts to build a self-reliant, globally competitive nation. We have remained Nigeria’s highest tax-paying company. With continued collaboration and shared resolve, we are confident that the journey ahead will usher in even greater opportunities for our people and our country.

“The Dangote refinery complex is, in many ways, your brainchild,” Dangote told the President. “Mr President, let me just say one thing — the main road leading into our refinery is now to be known as Bola Ahmed Tinubu Road,” Dangote disclosed.

He also revealed that, despite paying “N450bn in taxes last year,” the group was committed to spending “N900bn on road infrastructure across Nigeria.”

According to him, the Deep Sea Port Access Road is “one of eight major road projects totalling 500 kilometres, including two in Borno State that will eventually link Nigeria to both Chad and Cameroon.”

Speaking, Tinubu commended Dangote for his “belief in Nigeria” and for making “bold investments that have become a cornerstone in the country’s economic transformation.”

Tinubu described the refinery as “a remarkable achievement,” calling it “a phenomenal project of our time” and “a major point of reference for Nigeria’s industrial and economic growth.”

“Having inspected the Dangote Refinery, which is a great point of reference, a great phenomenon of our time, and a massive investment, I want to thank Aliko Dangote. I am also pleased that the Deep Sea Port project, which I initiated during my tenure as Governor of Lagos State, has become a resounding success. It has significantly reduced logistics costs by eliminating the need for trans-shipment,” Tinubu said.

He described Dangote as one of the ‘four wise men’ in Nigeria’s economic landscape, citing his “investments and steadfast commitment to the country.”

“I landed here with four wise men. I will say, wise men. Jim Ovia of reputable Zenith Bank, who has been acknowledged worldwide; Femi Otedola, my baby brother; Samad Rabiu of BUA; and I believe the wisest of them all, Alhaji Aliko Dangote, who is so daring in thinking, doing, and believing in his country,” he said.

Economist and Financial Derivatives Limited’s Managing Director, Bismarck Rewane, has predicted that the naira will soon stabilize between N1,600 and N1,650 against the US dollar.

Rewane made this statement during his speech at the June edition of the Lagos Business School Breakfast session.

During his mid-term evaluation of the current administration’s economy, the economist noted that the naira is still undervalued by 26.82 per cent. He also pointed out that the dollar’s 8.7 per cent decline so far this year could help strengthen the naira.

He explained that “The official and parallel market rates have converged more closely. Now trading within a 1–3 per cent margin. A major improvement from the 50–70 per cent gap observed pre-reforms. The spread is now within the N50 margin, meaning that the naira is now fairly priced and the naira will trade at about N1,600-N1,650/$”.

Looking ahead to June and July, Rewane forecasted that “inflation data will reveal a slight decline to 23.15 per cent. The real GDP growth for Q1 25 will come out at 3.4 per cent. Brent will trade at $60-$63 pb as OPEC+ increases output. Nigeria’s oil production will increase to 1.5 mbpd. The price of PMS will decline marginally to N845/litre. Diesel will trade at N950/litre. Corporate profitability in Q2’25 will increase as companies carry lower inventory. FAAC allocation will be flat at N1.6tn as corporate income tax clawback reduces tax liabilities.”

He further said that the Central Bank of Nigeria’s Monetary Policy Committee is expected to lower the benchmark interest rate by 50 basis points in its upcoming meeting. He also mentioned that the recent trade tariffs introduced by US President Donald Trump are unlikely to affect Nigeria significantly.

Rewane’s naira prediction was backed by analysts at Meristem, who believe that the exchange rate will remain stable at the official market, thanks to ongoing foreign exchange interventions and improved liquidity.

However, he added, “the parallel market is likely to remain under pressure, especially if downward risks to FX inflows persist and speculative demand stays elevated. As a result, the widening spread between both markets may linger in the near term,” he stated.

In May, the naira slightly appreciated at the official Nigerian Foreign Exchange Market, indicating a stable foreign exchange supply supported by the Central Bank’s continued interventions. Meanwhile, it depreciated on a month-to-month basis in the parallel market, increasing the gap between both markets from N1.69/$ in April to N24.25/$ in May.

According to Meristem’s monthly report, this was the first significant divergence since March 2025, which it attributed to strong demand pressures and speculation amid rising global uncertainties.

On company performance, Rewane gave a positive assessment, highlighting that businesses are seeing revenue and profit growth. He noted this reflects solid performance and reduced exposure to naira depreciation risks, due to the higher levels of locally denominated debt. He also observed that private firms now have quicker access to local financing, suitable for short-term needs, as shown by the rise in commercial paper issuances. This dependable domestic credit has supported business expansion and temporary financing needs.

These developments, he explained, have contributed to a favorable outlook for the Nigerian private sector as firms “adapt by repricing, local sourcing, and digital transformation. Investor sentiment is warming, fuelled by forex reforms, policy clarity, and signs of macroeconomic stabilisation. Investors are showing renewed interest, particularly in banks, infrastructure, and energy, but are still watching the policy environment. Portfolio investors are slowly returning, encouraged by higher yields, a more flexible exchange rate, and enhanced central bank transparency,” Rewane added.