The head of Dangote Group, Aliko Dangote, has pointed out that many Nigerians are not aware they pay only 55 percent of what citizens in other West African nations pay for petrol.

He further mentioned that his refinery has helped bring down fuel prices, currently selling petrol at rates between N815 and N820 per litre.

Dangote made these remarks during a visit to the 650,000-barrels-per-day refinery by ECOWAS Commission President, Dr Omar Touray, and his team, as per a statement released by the Dangote Group on Sunday.

He highlighted the importance of promoting intra-African trade and emphasized that the refinery has contributed to lowering the cost of refined fuel and production expenses in different areas of Nigeria’s 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 added that local refining has brought advantages for Nigerians, as they now pay much less for petrol compared to neighboring nations.

“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,” he noted.

He also revealed that there are “a much larger initiative in the pipeline, something we’ve not yet announced.” Dangote assured Nigerians that “this refinery is built for them, and they will enjoy the maximum benefit from it.”

Leading the ECOWAS delegation on a comprehensive tour of the refinery, Dangote outlined the hurdles and achievements encountered while building the world’s biggest single-train refinery. He restated his view that Africa’s reliance on imports is unsustainable and weakens its economic independence.

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

He affirmed that the Dangote refinery has the capacity to satisfy petroleum demands in both Nigeria and the West African region, addressing concerns that the refinery cannot meet local or regional needs.

“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 (ECOWAS officials) 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.

He pointed out that the drop in fuel prices is a direct benefit of refining locally, which not only boosts energy security but also makes fuel more affordable and reduces dependency on imports.

In response, the ECOWAS Commission President described the refinery as a symbol of hope for Africa’s future and a powerful example of what private enterprises can accomplish in pushing industrial development across the region.

“What I have seen today gives me a lot of hope, and everybody who doesn’t believe in Africa should come here. Visiting here will give you more hope because this is exactly what our continent should focus on.

“We have seen something I couldn’t have imagined, and really, the capacity in all areas is impressive. We congratulate Alhaji Dangote for this trust in Africa because I think you do this only when you have the trust, and he has a vision for Africa, and this is what we should all work to encourage,” Touray was quoted.

He pointed out that the refinery, which produces fuel that meets Euro V standards, is essential for ECOWAS countries to achieve their target of 50ppm sulphur content in fuels – a requirement that many imported products fail to meet and which poses risks to both health and the environment.

“We are still importing products below our standard when a regional company such as Dangote can meet and exceed these requirements. The private sector must take the lead in ECOWAS industrialisation,” he advised.

During the tour, Touray called for greater cooperation between governments and private businesses, saying that policies should reflect the true experiences and hurdles faced by industrialists across the continent.

“We believe our visit also serves as an opportunity to hear directly from Mr Dangote, about what the private sector expects from the ECOWAS community,” Touray explained, noting that as ECOWAS celebrates its 50th anniversary, the community is more committed than ever to bringing the private sector to the table, to listen to their perspectives, and to understand how best to create an environment that works for them.

“We cannot continue to make decisions on behalf of the private sector from a distance. Visits like this provide us with first-hand experience and direct insight into the challenges they face—challenges that authorities and government officials must work to address,” he added.

He noted that the time had come for the region to implement an industrial plan that tackles fundamental problems such as high youth unemployment, widespread poverty, and insecurity.

Touray promised the full support of the ECOWAS Commission in helping companies like Dangote Group gain access to broader markets within the region. He also urged other African countries to replicate Nigeria’s model by building infrastructure that benefits the continent as a whole.

“Once again, I congratulate the Dangote Group and commit that the ECOWAS commission will do everything to open up the ECOWAS market for them, if not the entire African continent,” he declared.

The visiting team included Sediko Douka, ECOWAS Commissioner for Infrastructure, Energy and Digitalisation; Prof. Nazifi Darma, Commissioner of Internal Services; Dr Tony Elumelu, Director of Private Sector/SME; and Abdou Kolley, Chief of Staff to Dr Touray, among others.

President Bola Tinubu has introduced a new executive order aimed at reducing the cost of projects, drawing in investments, and boosting revenue from oil and gas activities.

A statement released on Thursday by the office of the special adviser to the president on energy revealed that the executive order, named the Upstream Petroleum Operations Cost Efficiency Incentives Order (2025), limits companies’ tax credits to 20 percent.

Tax credits, which serve as government incentives, allow businesses to deduct a certain amount from the taxes they owe the government.

As outlined in the statement, the executive order brings in performance-based tax incentives for upstream companies that demonstrate “verifiable cost savings” according to established industry standards.

The statement explained that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will set and release these benchmarks each year, specific to onshore, shallow water, and deep offshore regions.

The statement also said that implementation guidelines will be provided later. One of the key points is that tax credits will be limited to 20% of a company’s yearly tax bill, ensuring government income is protected while still offering appealing fiscal terms to encourage operational efficiency.

President Bola Tinubu said the country must attract investments, not as a favor, but because “investors are convinced of real and enduring value.”

He added that the order serves as a clear message that Nigeria is developing an oil and gas industry that is productive, competitive, and beneficial to all its citizens. He emphasized that the initiative is focused on safeguarding the future, generating employment, and optimizing oil output.

To implement the order successfully, Tinubu appointed his special adviser on energy, Olu Verheijen, to lead cooperation among government agencies, maintain consistency across institutions, and ensure policy goals translate into real-world results.

Verheijen commented that the aim of the order is not just to cut costs but to strategically elevate Nigeria’s upstream oil sector to be competitive and financially strong on a global scale.

She said the reform promotes operational efficiency, boosts investor trust, and ultimately brings more value to the Nigerian people.

According to the statement, this new order expands on the president’s 2024 reform directives, which improved fiscal conditions, shortened project timelines, and aligned local content standards with global practices.

The Port Harcourt Refining Company is slated for an upcoming shutdown for a maintenance exercise, which is anticipated to last for 30 days.

While some retailers informed our correspondent that the facility ceased operations on Thursday night, the Nigerian National Petroleum Company Limited stated that the plant was still functional as of Friday.

However, on Friday, fuel retailers in Eleme and Okrika, the communities where the Port Harcourt refinery is located, protested against the planned shutdown. According to them, the refinery coordinator, Bayo Adenrele, had ordered the facility’s shutdown for undisclosed reasons.

The group’s statement was jointly signed by its Board of Trustees Chairman, Sunny Nkpe; the BoT Secretary, Emmanuel Inimgba; the Administrative Secretary and spokesman of PETROAN, Dr. Joseph Obele; the Administrative Chairman, Tekena Ikpaiki; and a board member, Dickson Obelley.

They alleged that certain individuals were attempting to “cripple” the revamped 60,000 barrel-per-day-capacity refinery.

“We, the Host Community Petroleum Bulk Retailers of Port Harcourt Refinery Depot, are compelled to expose the sinister actions of the refinery coordinator, who is acting as an agent of a private refinery. His actions are deliberately designed to cripple the Port Harcourt refinery, denying it crude oil and shutting it down.”

“As we speak, the old Port Harcourt refinery has initiated the process of shutting down on the directives of Engr. Bayo,” the retailers said.

The marketers argued that the shutdown of the refinery would give market dominance to a private refinery, leading to increased fuel prices in Nigeria and further exacerbating the economic hardship faced by the people.

They threatened to hold the coordinator responsible if a fuel crisis erupted after the shutdown of the facility.

“Furthermore, Engr. Bayo’s actions have been marked by a consistent disregard for the rights and interests of the host communities. During the rehabilitation process, he denied our communities their rightful benefits, including contracts, empowerment opportunities, and the sale of scraps,” the statement said.

Instead, it alleged that the coordinator engaged in practices short-changing the host communities while favouring his associates.

“The actions of Engr Bayo have hindered the completion of the CRU of the old refinery plant, and his activities are slowing down efforts to make Area 1, 2, and 3 plants of the new refinery fully operational. We fear that the planned shutdown will also lead to the disengagement of our sons and daughters who are currently working on the O&M of the refinery.

“We wish to make it clear that the host community and critical stakeholders will not fold their arms and allow this refinery to rot away after the government’s efforts to revive it. We will resist, with all vigor, through all available legal means, any push against the functionality of the refinery. We will not stand idly by while he prioritises private interests over the welfare of Nigerians,” the statement read partly.

The group recommended the immediate appointment of a substantive Managing Director for the refinery to facilitate the ongoing rehabilitation works.

“A permanent MD will bring stability and direction, ensuring the refinery’s revival and contributing to the nation’s economic growth,” the statement added.

The group called on the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri and the Group Chief Executive of the NNPC, Bayo Ojulari, to wade into the matter as soon as possible.

They demanded the removal of the coordinator while calling on the Senate President, Senator Godswill Akpabio, to intervene in the matter.

“We demand swift action to address this sabotage and protect the interests of Nigerians,” the statement concluded.

However, the Chief Corporate Communications Officer of NNPC, Olufemi Soneye, debunked claims of sabotage, saying the maintenance will ensure safe and sustainable operation of the refinery.

Soneye told our correspondent that though the refinery was still working as of Friday, it will undergo a one-month maintenance exercise.

While saying the maintenance will follow global best practices, he added that the NNPC will ensure uninterrupted fuel supply during the period.

“Please be informed that the refinery remains fully operational. However, we are preparing to undertake a scheduled critical safety maintenance exercise aimed at ensuring the continued safe and sustainable operation of the facility.

“This maintenance activity, which will follow global best practices, is expected to last approximately one month. To ensure uninterrupted supply during this period, we have adequate volumes of AGO, kerosene, and other products,” he said.

Recently, the Depot and Petroleum Products Marketers Association of Nigeria said the refineries owned by the Nigerian National Petroleum Company Limited could not optimally produce premium motor spirits but naphtha.

DAPPMAN’s Executive Secretary, Olufemi Adewole, clarified that his members will not go to the Port Harcourt or Warri refineries for petrol because the facilities were producing naphtha, not optimally producing the much-needed petrol.

“The NNPC refineries, both the revamped Port Harcourt and Warri, are not yet optimally producing PMS. They are producing naphtha. Our members will not go to them for now.

“But where we can get the product is Dangote refinery and we are willing to buy from Dangote refinery, but if we don’t get the product from Dangote refinery, the PIA allows us to import, which is what we’ll go for,” Adewole said.

In November 2024, the NNPC said the 60,000 bpd-capacity Port-Harcourt refinery had resumed operations after years of inactivity.

The NNPC said the newly rehabilitated complex of the old Port-Harcourt refinery, which had been revamped and upgraded with modern equipment, was operating at a refining capacity of 70 per cent of its installed capacity.

The company added that diesel and Pour Fuel Oil would be the highest output from the refinery, with a daily capacity of 1.5 million litres and 2.1 million litres, respectively.

This is followed by a daily output of Straight-Run Gasoline (Naphtha) blended into 1.4 million litres of Premium Motor Spirit, 900,000 litres of kerosene, and low-pour fuel oil of 2.1 million litres.

It was stated then that about 200 trucks of petrol would be released into the Nigerian market daily.

The NNPC spokesperson, Soneye, stated this while replying to claims from some quarters that the Port Harcourt refinery was not producing fuel, but blending through Indorama Petrochemicals.

“We are, however, aware of unfounded claims by certain individuals suggesting that the refinery is not producing products. For clarity, the old Port Harcourt Refinery is currently operating at 70 per cent of its installed capacity, with plans to ramp up to 90 per cent.

“The refinery is producing the following daily outputs: Straight-Run Gasoline (Naphtha): Blended into 1.4 million litres of Premium Motor Spirit (petrol); Kerosene: 900,000 litres; Automotive Gas Oil (diesel): 1.5 million litres; Low Pour Fuel Oil: 2.1 million litres; Liquefied Petroleum Gas.

“It is worth noting that the refinery incorporates crack C5, a blending component from our sister company, Indorama Petrochemicals (formerly Eleme Petrochemicals), to produce gasoline that meets required specifications. Blending is a standard practice in refineries globally, as no single unit can produce gasoline that fully complies with any country’s standards without such processes,” Soneye disclosed in November.

He added that the NNPC had made substantial progress on the new Port Harcourt Refinery, which he said would begin operations “soon” without prior announcements.

However, an April report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority showed that the Port Harcourt refinery had been operating below 40 per cent capacity.

Credit: The Punch