Petrol Flows Again! Dangote Refinery Resumes Operations Despite Economic Hurdles

Following the suspension of the Naira-for-Crude programme—which previously enabled the refinery to exchange crude oil for Naira—the 650,000 barrels-per-day facility halted truck loading based on Naira payments. While loading via ships continued with dollar-based transactions, oil marketers holding agreements with Dangote Refinery were required to make additional payments to secure petrol supply.

According to industry insiders, including representatives from MRS Oil & Gas, companies that adjusted to the new payment terms are being loaded at a price of ₦880 per litre.

This change comes amidst a nationwide surge in petrol prices, with the latest pump and depot rates climbing as high as ₦960 per litre. A new price list from MRS Oil and Gas, effective from March 28, 2025, reveals significant regional variations:

• In Lagos, petrol costs ₦930 per litre.

• In the South West (Ogun, Oyo, Osun, Ekiti, Kwara, Ondo), the price is ₦940 per litre.

• In the South-South and South-East (Edo, Abia, Akwa Ibom, Bayelsa, Rivers, Cross River, Enugu), the price reaches ₦960 per litre.

• In Abuja and parts of the North Central (Kaduna, Benue, Kogi, Niger), the cost is ₦950 per litre.

• In the far northern states (Zamfara, Kano, Jos, Bauchi, Taraba, Adamawa, Borno, Katsina, Jigawa, Gombe, Yobe), prices hit the peak of ₦960 per litre.

The Naira-for-Crude scheme, originally established to bolster domestic fuel supply and stabilize pump prices, has encountered obstacles due to global crude price fluctuations and currency depreciation. Since October 2024, Dangote Refinery has received 48 million barrels of crude under this arrangement, out of a total 84 million barrels processed since starting operations in 2023.

The refinery, capable of processing both Nigerian and other crude varieties, aims to fully meet Nigeria’s refined product demands while generating surplus for export. According to Dangote Petroleum Refinery, the project will generate a $21 billion per year market for Nigerian crude.