The Dangote Refinery was expected to reduce Nigeria’s dependence on imported fuel and help conserve foreign exchange. Pricing refined products in dollars appears to move in the opposite direction in the short term, although the company argues that it reflects the reality that much of its crude feedstock is still purchased in dollars. For businesses and consumers, the practical implication is that fuel prices may become more volatile whenever the naira weakens against the U.S. dollar.
This new policy from Dangote Refinery brings back to focus the media war fought in 2024 between the company and NNPC. As I said to a few folks after a Sunday service at the time, there’s much that was not being said in the brouhaha, especially from the NNPC side. The Dangote PR machine effectively overwhelmed the NNPC, which stood no chance against the tide of public sentiments owing to its own unfortunate legacy
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