Business
Refiners Hinge Price Differences on Imported Petrol on Quality
The Crude Oil Refiners Association of Nigeria has faulted claims that imported petroleum products are cheaper than locally refined fuels, arguing that price differences stem from quality disparities and not efficiency, while accusing the World Bank of failing to make a like-for-like comparison.
The association’s Publicity Secretary, Eche Idoko, who spoke in an interview with The PUNCH, said local refineries were disadvantaged by premium crude pricing and unfair benchmarking against blended imported products.
In a now-deleted report, the World Bank Group had stated that Dangote’s petrol price was higher than imported ones, asking the Federal Government to allow fuel importation. Reacting in an interview with our correspondent, Idoko maintained that the World Bank was not fair with his comparison.
According to him, petroleum products imported into Nigeria are blended and are of low quality compared to locally produced ones.
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He added that many imported fuels were blended to meet minimum regulatory specifications, making them cheaper but not directly comparable to fully refined local products.
“What is the quality, what is the process of producing some of these imported products? Some of the products that have been imported are blended products that are coming from Kazakhstan and the Far Eastern European countries. They blend just to get the parameters that they need in this country. And then they bring it in.
“In terms of quality, they would not compete with the quality that we produce from our refineries here. And of course, it also dovetails with the fact that blending is cheaper than refining. So, those are factors that would make those prices cheaper,” he stated.
Idoko said any comparison must account for product specifications such as density, flash point and pour point, noting that different fuel grades attract different prices.
“The World Bank has failed to tell us what the density was, what the flash point was, what the pour point was, and all those things about these products. They should also give a comparison because not all products are the same. There are different grades of PMS. There are different grades of diesel. And as different as they are, so also are the prices. So it’s not okay to just say the price of petrol produced in Nigeria is higher than the price of imported petrol. How do you grade the two of them?” he asked.
He insisted that unless identical grades were compared, conclusions about price competitiveness would be misleading. “When you are speaking of two different grades of fuel, then you are not being fair to the local refinery. So I think those are the factors that the World Bank will have to spell out when they are doing their comparison. It has to be apple with apple and not apple with pear or apple with orange,” he said.
The CORAN spokesman also clarified that blending was not illegal but typically produced lower-grade fuels that cost less. “Blending does not mean adulterated fuel. No, not necessarily. As I said, in products, you have grades. So the higher the grade, the higher the price.
“And then when you’re looking at the grade, you’re looking at the level of emissions. So if I’m refining and my emissions are more environmentally friendly, it will definitely be more expensive because it takes a higher level of refining. But if it’s not, then it means it’s a lower grade, so the price will be lower.
“So I’m not saying blending is bad. I think that the misinformation is that, when you blend, it’s like something illegal. No, it’s not illegal. But it doesn’t give you the grade in terms of quality as the one that has gone through the full reforming process. It won’t give what the one who went through a standard catalytic reformer and reforming process will give you. The refined one will be different from what a blended product will give you,” he stated.
Among other factors contributing to the high cost of locally produced fuel, Idoko blamed a lack of enough crude supply and the sale of the crude at a premium.
“Modular refineries are still buying crude at a premium. And the Dangote refinery, even though it’s getting crude, is getting it at a premium. There are no comparative advantages. There are no discounts. Dangote and other refineries are buying from traders internationally. Now, we don’t enjoy incentives here. And then they are quoting our price at Brent. So you cannot see any comparative advantage,” he said.
His comments followed a recent report by the World Bank, which stated that imported petrol was cheaper than locally refined fuel in Nigeria. In its Nigeria Development Update released in Abuja on Tuesday, the bank noted that the current pricing structure had created a gap between locally refined fuel and import parity prices.
It stated that imported petrol is about 12 per cent cheaper than fuel supplied by the Dangote refinery, reflecting distortions in the domestic pricing structure amid soaring global crude prices.
“The Dangote refinery—the main supplier of refined petrol after the regulator ceased issuing import licences in early 2026— raised the ex-depot price of Premium Motor Spirit to about N1,275 per litre as of March 23, 2026, compared to an estimated import-parity price of around N1,122 per litre, implying a cost differential of roughly 12 per cent,” the report said.
However, Idoko maintained that such comparisons must include fuel quality metrics before drawing conclusions, saying the analysis should not rely on “a blanket statement to say that imported products are cheaper than what we are refining here”.
In the report, the World Bank Group advised the Federal Government to allow the importation of petrol into the country, saying, “Reopen the PMS market to competition. The suspension of import licences since January 2026 has reduced competition, allowing prices to exceed import-parity levels.
“Allowing qualified marketers to resume imports would restore competition, reduce pricing distortions, and better align domestic prices with global benchmarks. Greater market contestability would also strengthen supply security by reducing reliance on a single refinery and broadening sourcing options while remaining consistent with domestic refining objectives.”
However, this came with backlashes. Nigerians across various social media platforms, forcing the World Bank to pull down the report while making clarifications that its position was not a blanket endorsement of fuel importation but part of a broader strategy tied to market reforms and consumer protection.
“In the case of Nigeria, the focus should be to provide targeted support to the most vulnerable people through their well-functioning social safety net system, and the World Bank Group stands ready to step up its existing support,” it stated.
The Dangote refinery supplied over 92 per cent of the petrol consumed in February as the Nigerian Midstream and Downstream Petroleum Regulatory Authority suspended import licences. Reports have it that the NMDPRA reviewed the decision amid the disruption caused by the Middle East crisis.
Business
Dangote Refinery’s Expansion to 1.4m bpd Creates Jobs for 95,000 Skilled Workers
President of the Dangote Group, Aliko Dangote, has announced that the expansion of the Dangote Refinery to a production capacity of 1.4 million barrels per day will generate employment for no fewer than 95,000 skilled workers at peak construction.
Dangote disclosed this at the weekend in Lagos during his induction as an Honorary Fellow of the Nigerian Academy of Engineering (NAE), describing the project as a major milestone in Nigeria’s industrial transformation.
According to him, the expansion underscores the Group’s continued commitment to engineering excellence, job creation, and sustainable economic growth.
“This award is particularly meaningful because it recognizes what we are doing in the industry, especially our commitment to employing engineers and skilled professionals. At the peak of construction for this expansion, we expect to have about 95,000 skilled workers on site, and we will continue to grow,” Dangote said.
Upon completion, the expanded Dangote Refinery will surpass the Jamnagar Refinery in India to become the largest refinery in the world, significantly strengthening Nigeria’s refining capacity.
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Dangote noted that the project would rely heavily on Nigerian expertise, creating substantial opportunities for engineers, technicians, artisans, and other skilled professionals. He added that the expansion reflects the Group’s long-term vision for industrialization in Nigeria and across Africa.
Beyond employment generation, the refinery expansion is expected to stimulate local manufacturing, enhance technology transfer, and deepen Nigeria’s oil and gas value chain. It will also improve fuel security, reduce dependence on imported petroleum products, and deliver significant foreign exchange savings for the Nigerian economy.
“The scale of this expansion reflects our confidence in Nigerian capacity and our belief that Africa has the ability to build world-class infrastructure that meets global standards,” Dangote stated.
In his remarks, President of the Nigerian Academy of Engineering, Engr. Prof. Rahamon Bello, described the honour as well deserved, noting that Dangote’s impact transcends physical infrastructure.
“What makes this recognition fitting is not only what has been built, but what has been inspired. Alhaji Aliko Dangote’s journey continues to motivate a new generation of engineers, entrepreneurs, and innovators to think boldly, act decisively, and believe in the immense possibilities within our continent,” Bello said.
Photo Caption
From Left: GED Oil & Gas, Dangote Industries Limited, Fatima Aliko Dangote; GED Operations, Dangote Sugar Refinery Plc, Mariya Aliko Dangote; President/CE, Dangote Industries Limited, Aliko Dangote; President, The Nigerian Academy of Engineering, Engr. Prof. Rahamon Bello, at The Nigerian Academy of Engineering Induction of Aliko Dangote as Honorary Fellow in Lagos on Friday, April 24, 2026.
Business
Airlines Threaten Shutdown over Skyrocketing Fuel Price
Alleging unbearable and unsustainable aviation fuel prices, domestic operators have set Thursday, April 30, 2026 as the shutdown date of local flights in Nigeria.
According to industry insiders, the airlines had engaged both the Federal Government and oil marketers without a breakthrough, and appeared left with no option but to ground flights from Thursday.
The looming shutdown comes after several complaints by operators, who have watched the price of Jet A1 surge by over 300 per cent compared to February levels, pushing operating costs to the brink.
Passengers, many of whom rely on domestic flights for business and urgent travel, now face uncertainty.
In a bid to avert the crisis, the Minister of Aviation and Aerospace Development, Festus Keyamo, convened a meeting with airline operators and fuel marketers in Abuja last week. However, findings indicate that the tripartite talks ended in a deadlock, with operators unwilling to shift their stance unless decisive action is taken.
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At the end of the two-day meeting, the minister announced a 30 percent reduction in aviation-related taxes as part of efforts to ease the burden on airlines. While the gesture was acknowledged, operators insist it falls short of addressing the root problem.
On the first day of the meeting, Vice President of the Airline Operators of Nigeria, Allen Onyema, welcomed the government’s intervention but maintained that fuel marketers must account for the sharp rise in prices.
Onyema said, “This government has helped the industry more than anyone since 1999, and the President is even willing to waive 30 percent of the debts airlines are owing.
“But the truth is that the marketers must be brought to book to explain how they came about the 300 percent increase when even Dangote is surprised because what he is selling to us is still the cheapest.”
At the end of the second day, Onyema issued a stark warning, giving a seven-day ultimatum from midnight last Thursday for action to be taken. “Since the advent of the US-Iran war, there has been a spike in aviation fuel in Nigeria, which we, the Airline Operators of Nigeria, feel is not proportionate to the hike internationally.
“We expect that in the next 48 hours something drastic should be done because no airline will fly in this country in the next seven days if nothing is done, not because they don’t want to fly, but because fuel may not be available to us at sustainable pricing.”
Providing further insight into the financial strain, Onyema disclosed that fuel prices have skyrocketed from about N900 per litre before the crisis to between N2,700 and N2,900, with some marketers selling as high as N3,500.
“Before the crisis, we were buying fuel at about N900 per litre. Now it has risen to between N2,700 and N2,900, with some selling as high as N3,300 to N3,500,” he said.
According to him, airlines are now operating primarily to service fuel costs. “All the airlines in Nigeria have been flying to pay fuel marketers only, and you don’t want to compromise safety,” he added.
Despite speculations about indebtedness, senior airline officials who spoke to our correspondent in confidence on Sunday, due to the sensitive nature of the matter, insisted that operators are up to date with payments to key aviation agencies, including the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Airspace Management Agency (NAMA).
Consequently, the Airline Operators of Nigeria (AON) have formally requested additional relief measures from the government.
In the letter dated April 21 and signed by AON President Abdulmunaf Sarina, the group called for the immediate suspension of aviation taxes, fees, and charges for at least six months.
The operators argued that the unprecedented rise in fuel costs threatens not only airline operations but also jobs and the stability of the aviation sector. Among other demands, the AON proposed the introduction of a non-taxable fuel surcharge, a standard practice in international aviation to help airlines manage rising costs.
They also urged the government to direct oil marketers to issue credit notes to airlines affected by what they described as excessive and arbitrary price hikes. In addition, the group called for the establishment of an industry tax reform committee to review existing charges, assess their relevance, and align them with global standards.
As the deadline approaches, uncertainty hangs over Nigeria’s aviation sector. Another airline executive, who spoke anonymously on Sunday because he was not authorised to comment publicly, warned that the shutdown threat remains real. “If nothing is done, no airline will be flying by Thursday,” he said.
Business
Dangote Leads East Africa’s Industrial Revolution
The ship of industrial revolution is about to berth in East Africa, with the continent’s leading industrialist, Alhaji Aliko Dangote, making clear his intention to take the driver’s seat on investments conceived to lead the continent into energy security and industrial revolution.
To this end, Alhaji Dangote whose company operates the largest petroleum refinery on the continent has offered to lead a consortium to build a major crude oil refinery in East Africa, as governments across the region push for greater energy self-sufficiency following supply disruptions linked to the Iran conflict.
The cost profile of the proposed East Africa Refinery was not disclosed but the proposed facility, to be located in the Tanzanian port city of Tanga, is expected to mirror the scale and capacity of Dangote’s flagship refinery in Lagos, which processes about 650,000 barrels per day.
The project is being discussed as a joint regional initiative, with crude supplies expected from Democratic Republic of Congo, Kenya, South Sudan and Uganda.
Kenyan President William Ruto stated at a conference in London that the refinery would serve multiple East African economies, many of which remain heavily dependent on imported refined petroleum products.
The region currently relies largely on supplies from the Middle East, leaving it exposed to global price volatility and logistical disruptions, including those caused by instability around the Strait of Hormuz.
Dangote said he would take the lead in delivering the project if participating governments reached agreement, with a proposed construction timeline of four to five years.
The move reflects a broader shift across Africa toward building domestic refining capacity after recent geopolitical shocks exposed vulnerabilities in fuel supply chains.
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In Nigeria, Dangote’s refinery has already reshaped the domestic energy landscape since operations began in 2024, significantly reducing the country’s long-standing dependence on imported fuel despite being Africa’s largest crude producer.
The facility has also positioned the Dangote Group as a central player in regional energy markets.
The proposed East African refinery is expected to complement emerging upstream production in the region, particularly in Uganda, which is preparing to begin commercial oil output. Kampala has also announced separate plans for a smaller refinery project in partnership with a United Arab Emirates-based investor.
Beyond refining, Dangote indicated plans to expand industrial investments across the continent, including the development of around 20 fertilizer blending plants by 2028 to support agricultural productivity and reduce import dependence.
He also signaled that a future listing of the Nigerian refinery could be opened to African investors, encouraging broader continental participation.
According to Dangote, the expansion strategy is aimed at building integrated industrial capacity that keeps more value within Africa while reducing exposure to external supply shocks.
Analysts say the success of the Tanga project will depend on regional coordination, regulatory alignment and financing, but note that it represents one of the most ambitious attempts yet to create a shared energy infrastructure serving multiple African economies.





