EDUN: DANGOTE REFINERY BOOSTING NIGERIA’S RESILIENCE DESPITE FUEL PRICE HIKES

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By: Fasasi Hammad

As fuel prices continue to rise amid the ongoing Middle East conflict, Finance Minister Wale Edun has defended the increases, saying current petroleum prices reflect market realities. He also urged Nigerians to appreciate the country’s growing ability to refine crude oil domestically.

Edun made the remarks during an interview on Politics Today on Channels Television on Wednesday, at a time when higher fuel costs are driving up transportation expenses and intensifying economic pressure on many Nigerians.

According to the minister, the pricing framework introduced by President Bola Tinubu allows market forces to determine the cost of petroleum products.

“The market price for petroleum products is the mechanism put in place by Mr. President, something that was missing for a long time. It’s important to understand that this system works both ways,” Edun said.

He pointed to recent price adjustments by the Dangote Refinery as an example of the market mechanism in action.

“We’ve seen Dangote reduce prices from around ₦1,200 to just above ₦1,000 or ₦1,050. These are the natural movements of the market,” he explained.

Edun noted that Nigeria’s economic resilience is being strengthened by the Dangote Refinery—the largest in Africa—which began petrol production in 2024 with a refining capacity of 650,000 barrels per day.

“A large part of the resilience we see in the Nigerian economy today comes from private sector investment, particularly Alhaji Aliko Dangote’s refinery. We must support local refiners so that petroleum products continue to flow,” he said.

He added that Nigerians should be grateful for the country’s ability to refine crude oil locally into petrochemicals and petroleum products.

The Dangote Refinery recently increased petrol prices three times in response to rising global crude oil prices linked to the Middle East crisis, before later reducing them following a drop in international crude benchmarks.

Despite the economic challenges posed by global uncertainties, Edun expressed optimism about Nigeria’s economic outlook.

“We are gradually coming out of the woods. We can see light at the end of the tunnel as long as we remain committed to the current reforms,” he said.