Dangote ends naira fuel sales, pegs petrol at $0.779 per litre in major pricing shift

Dangote Petroleum Refinery has officially transitioned to United States dollar-denominated sales of refined petroleum products, ending naira-based transactions for most products and introducing a new pricing regime expected to significantly influence fuel prices, petroleum marketers and Nigeria’s deregulated downstream oil sector.

Under the new pricing template, which took effect on Monday, July 13, 2026, the refinery fixed the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, at $0.779 per litre. It also pegged the price of Automotive Gas Oil (AGO), commonly known as diesel, at $1.087 per litre, while aviation fuel (Jet A-1) will now sell at $0.942 per litre. Coastal deliveries of petrol have also been priced at $1,044.62 per metric tonne.

The development marks one of the most significant commercial policy changes by the 650,000 barrels-per-day Dangote Refinery, effectively ending the naira-denominated fuel sales introduced under the Federal Government’s naira-for-crude initiative, which commenced on October 1, 2024, to encourage domestic refining, reduce pressure on Nigeria’s foreign exchange reserves and stabilise fuel prices.

In a circular issued to petroleum marketers and customers, the refinery announced that all previously issued naira-denominated Proforma Invoices (PFIs) and Deal Recaps for both gantry and coastal transactions had become invalid following the transition to dollar transactions.

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The notice, signed by the refinery’s Group Commercial Operations, instructed customers not to make payments against any cancelled naira invoices, stating that all future purchases would be settled exclusively in United States dollars.

According to the refinery, the revised pricing structure applies to petrol, diesel and aviation fuel, while Liquefied Petroleum Gas (LPG) remains exempt and will continue under its existing payment arrangement.

Industry experts say the transition reflects changing commercial realities facing the refinery, particularly the increasing use of dollar-denominated crude oil supply contracts.

Sources familiar with the development explained that although the refinery previously sold a substantial volume of its refined petroleum products in naira, a growing percentage of the crude oil it processes is now being purchased in dollars.

The resulting mismatch between procurement costs and sales revenue reportedly exposed the refinery to significant foreign exchange risks, especially amid persistent volatility in global crude oil prices and fluctuations in the naira exchange rate.

One senior industry source said the imbalance had become increasingly difficult to sustain.

“Dangote Refinery is receiving fewer naira-denominated crude cargoes while more crude supplies are being paid for in dollars. Continuing to sell refined products largely in naira created significant exchange-rate exposure that became commercially unsustainable.”

Energy analysts believe the refinery’s latest decision aligns its operations with international petroleum trading standards, where crude oil and refined petroleum products are predominantly traded in US dollars.

They note that the new policy is expected to improve the refinery’s financial stability by reducing exchange-rate losses while enhancing its competitiveness in regional and international export markets.

However, the move is also expected to have important implications for Nigeria’s downstream petroleum sector.

Since independent marketers and bulk distributors will now purchase products in dollars, foreign exchange movements are expected to play a more direct role in determining wholesale fuel prices.

Although the refinery has introduced dollar benchmark prices, industry stakeholders emphasise that Nigerians will continue to buy petrol at filling stations in naira.

Retail pump prices will therefore depend on several variables, including the prevailing naira-to-dollar exchange rate, international crude oil prices, transportation and logistics costs, depot charges, regulatory fees, taxes and marketers’ operating margins.

The policy shift has also reignited debate over the future of the Federal Government’s naira-for-crude programme, which was designed to encourage domestic refining, reduce dependence on imported petroleum products and conserve scarce foreign exchange.

Industry observers say the effectiveness of the policy has weakened in recent months as increasing volumes of crude supplied to local refiners gradually reverted to dollar-based transactions.

Some analysts argue that unless crude oil allocations to domestic refineries are consistently supplied under naira-based arrangements, maintaining naira-denominated fuel sales may become increasingly difficult.

Since commencing commercial production, Dangote Petroleum Refinery has rapidly become Nigeria’s largest producer and supplier of refined petroleum products, significantly reducing the country’s reliance on imported petrol, diesel and aviation fuel.

The refinery has also expanded exports to several African countries, positioning Nigeria as an emerging regional refining hub.

Market analysts believe the transition to dollar pricing further integrates the refinery into the global petroleum market and reinforces the growing influence of international oil prices and exchange-rate stability on domestic fuel costs.

While marketers are expected to adjust to the new commercial framework, economists say exchange-rate management will now play an even more critical role in determining the affordability of fuel for Nigerian consumers.

The latest development underscores the increasing importance of macroeconomic stability, foreign exchange liquidity and crude oil supply arrangements in shaping the future of Nigeria’s deregulated petroleum market.

Dangote ends naira fuel sales, pegs petrol at $0.779 per litre in major pricing shift

Keyamo releases CCTV footage, challenges Peter Obi’s persecution claims

Minister of Aviation and Aerospace Development, Festus Keyamo, has asked the presidential candidate of the Nigeria Democratic Congress (NDC) for the 2027 election, Peter Obi, to publicly apologise to airport officials and pay a ₦25,000 parking fine over an incident at the Nnamdi Azikiwe International Airport, Abuja, warning that the Federal Airports Authority of Nigeria (FAAN) could take further action if he fails to comply within one week.

The minister issued the warning after ordering an internal investigation into Obi’s allegation that officials at the Abuja airport harassed him as part of what he described as political persecution by the Federal Government.

In a statement released on Friday night, Keyamo said the investigation relied on footage from the airport’s 24-hour Closed-Circuit Television (CCTV) surveillance system, which he said captured the entire sequence of events that led to the clamping of the vehicle conveying Obi.

According to the minister, the CCTV footage showed that on Saturday, July 4, 2026, Obi arrived at the domestic wing of the airport at about 8:28 p.m. in a vehicle driven by a police officer.

He said Obi and two other occupants immediately entered the terminal building, while the police officer parked the vehicle in the designated drop-off area before leaving it unattended and entering the terminal, contrary to airport regulations.

Keyamo explained that the drop-off zone is designed only for brief passenger drop-offs and that drivers are required to remain inside their vehicles at all times while using the area.

He said leaving any vehicle unattended within the zone constitutes a security risk and violates internationally accepted airport safety procedures.

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According to the minister, the police driver briefly returned to the vehicle at about 8:32 p.m. to retrieve an item before leaving it unattended again.

He said airport security personnel subsequently clamped the tyres of the vehicle after observing that it had remained unattended in the restricted area.

Keyamo stressed that airport officials who carried out the enforcement action did not know the vehicle belonged to Obi because there was no occupant inside when it was clamped.

The minister alleged that after the police officer discovered the vehicle had been immobilised, he contacted Obi, who then spoke directly with the airport manager and requested that the vehicle be released.

According to Keyamo, the vehicle was eventually released without payment of the prescribed ₦25,000 fine for violating airport parking regulations.

He argued that the matter had effectively been resolved until Obi later publicly alleged that he had been deliberately targeted by airport authorities because of his political status.

“As Minister of Aviation, I felt a moral duty to investigate and authenticate the claim made by Mr Peter Obi that the tyres of his car were unjustly clamped, suggesting a persecution agenda against him by the Federal Government,” Keyamo said.

“Luckily enough, the entire Abuja airport is covered by CCTV cameras operating 24 hours a day.”

The minister maintained that the footage contradicted Obi’s account and showed that airport officials merely enforced established security regulations applicable to every airport user, regardless of status or political affiliation.

He further alleged that Obi used his influence to secure the release of the vehicle without paying the required fine and later attempted to portray the enforcement action as political persecution.

Keyamo therefore demanded that Obi publicly apologise to airport workers whom he said were unfairly accused of victimising the former Anambra State governor.

He also asked Obi to voluntarily return to the airport and pay the ₦25,000 parking penalty.

According to the minister, failure to comply within one week would leave him with no option but to direct the Federal Airports Authority of Nigeria (FAAN) to take appropriate administrative action.

“If these demands are not met within one week, I will be giving the necessary directives to the Federal Airports Authority of Nigeria (FAAN) to take the next steps against him,” he stated.

The controversy began after Obi alleged that airport officials clamped the vehicle conveying him while other improperly parked vehicles were left untouched.

The former Anambra State governor argued that the action reflected selective enforcement and formed part of a broader pattern of intimidation directed at opposition figures.

Obi also expressed concern over what he described as the shrinking democratic space in Nigeria and urged public institutions to remain impartial in carrying out their responsibilities.

As of the time of filing this report, Obi had not publicly responded to Keyamo’s latest statement, the CCTV footage released by the Ministry of Aviation or the minister’s demands for an apology and payment of the parking fine.

The incident has generated widespread debate across political and public circles, with supporters of both men offering differing interpretations of the CCTV footage and the circumstances surrounding the enforcement action.

While some observers argue that airport regulations should be applied equally to every Nigerian without regard to political status, others have called for an independent review to determine whether the enforcement process was carried out fairly and consistently.

The development has further intensified political exchanges ahead of the 2027 general election, with analysts saying the dispute reflects the increasingly charged political atmosphere as parties prepare for the next presidential contest.

Attention is now focused on whether Obi will respond to the minister’s ultimatum or whether FAAN will proceed with any formal administrative measures over the incident.

Keyamo releases CCTV footage, challenges Peter Obi’s persecution claims

NADDC Eyes Media Alliance to Fast-Track Automotive Industry Growth

The National Automotive Design and Development Council (NADDC) has identified stronger collaboration with specialised motoring media as a strategic imperative for accelerating the growth of Nigeria’s automotive industry, saying sustained public awareness, investor confidence and policy support are crucial to transforming the country into a leading vehicle manufacturing hub in Africa.

The Council stated this while receiving the Motoring World Resilience in National Automotive Development Award during the 30th anniversary celebration of Motoring World magazine in Lagos.

The award recognises NADDC’s consistent commitment to promoting local vehicle manufacturing, skills development and industrial growth despite economic headwinds and policy challenges.

Receiving the award on behalf of the Director-General of NADDC, Otunba Oluwemimo Joseph Osanipin, the Director of the General Services Department, Mrs. Susan Bisong-Taiwo, reaffirmed the Council’s determination to position Nigeria as a leading automotive manufacturing and innovation hub in Africa.

In a keynote address delivered on behalf of the Director-General and titled “Motoring Media as a Catalyst for Automotive Industry Growth in Nigeria,” Osanipin said specialised motoring media remains indispensable to the country’s automotive industrialisation drive by promoting investment, shaping public perception and deepening understanding of emerging mobility technologies.

He noted that across the world, the media had played a strategic role in supporting local manufacturing, educating consumers, stimulating policy debates, attracting investment and strengthening confidence in the automotive industry.

“The media is the bridge between government, industry and the public. It informs. It educates. It influences perception. And, importantly, it drives national conversations,” he said.

According to him, the global automotive industry is witnessing unprecedented transformation driven by electric mobility, alternative fuels, smart manufacturing and green transportation technologies, adding that Nigeria must position itself to benefit from these emerging opportunities.

Osanipin disclosed that NADDC is implementing strategic programmes aimed at transforming Nigeria from a vehicle-consuming nation into a competitive automotive manufacturing and innovation centre. The initiatives, he said, include electric vehicle development, compressed natural gas (CNG) conversion programmes, local content promotion, automotive component manufacturing, skills acquisition and strategic partnerships across the industry.

He stressed that government policies alone cannot deliver the desired transformation, urging the motoring media to simplify automotive policies for public understanding, educate Nigerians on cleaner mobility solutions, encourage patronage of locally assembled vehicles and sustain constructive engagement among policymakers, investors, manufacturers and consumers.

The Director-General also underscored the importance of positive and balanced narratives in attracting investment to the sector.

“Where the narrative is dominated only by challenges and uncertainties, investor confidence weakens. But when the media responsibly highlights innovation, progress and opportunities, it inspires confidence and stimulates growth,” he said.

Osanipin commended Motoring World magazine for its resilience and invaluable contributions to automotive journalism, policy advocacy and industry development over the past 30 years, describing its longevity in Nigeria’s challenging media environment as a reflection of professionalism, relevance and dedication.

He maintained that stronger collaboration among government institutions, industry operators and specialised motoring media would become even more critical as Nigeria advances its automotive industrialisation and energy transition agenda.

Highlighting Nigeria’s prospects, he said the country has significant automotive potential arising from its large market, youthful population, growing technical capacity, increasing investor interest and abundant natural resources. He, however, stressed that policy consistency, infrastructure development and sustained stakeholder collaboration remain essential to unlocking the sector’s full potential.

“If government, industry and the media work together strategically, Nigeria can emerge as a major automotive hub on the African continent,” he said.

The Motoring World Resilience in National Automotive Development Award honours institutions and individuals that have demonstrated exceptional commitment and resilience in advancing Nigeria’s automotive industrialisation despite prevailing economic and policy challenges.