Nigeria’s Dangote Refinery Prioritizes Domestic Fuel Market Amid Global Price Surge. Lagos, Nigeria — March 10, 2026 Lead Paragraph: Nigeria’s Dangote mega-refinery has pledged to prioritize the domestic fuel market to alleviate fuel shortages and mitigate the impact of rising global oil prices, particularly following the Middle East conflict.
However, the company warned that such efforts are contingent upon government support and could not exclude the possibility of further price increases.
The Dangote refinery, owned by Africa’s richest man, Aliko Dangote, boasts a current capacity of 650,000 barrels per day, which is sufficient to meet Nigeria’s fuel needs. Before its opening in 2024, Nigeria relied heavily on fuel imports, often leading to shortages. Managing Director David Bird emphasized the importance of Nigerian crude access and government support. “.
Nigeria will continue to enjoy supply security, “Bird said during a press conference in Lagos. “Provided we continue to get access to Nigerian crude with the support of the Nigerian government and NNPC — albeit at internationally benchmarked prices — we will continue to process that oil and serve the domestic market with priority.”
The Nigerian National Petroleum Company (NNPC), a fully government-owned entity, plays a crucial role in this supply chain.
Despite the commitment to domestic supply, Bird acknowledged that Dangote remains exposed to international commodity markets, which could lead to further price increases. Fuel prices in Nigeria have surged by approximately 20 percent in a week, following US and Israeli strikes on Iran and Iran’s retaliatory measures.
This escalation has pushed benchmark crude prices above $100 a barrel, causing global stock markets to plummet and raising concerns about potential shortages.
The price of petrol in Lagos, Nigeria’s commercial capital, has climbed from 830 naira a litre to a record high of 1,050 naira ($0. 59 to $0. 75) since the Middle East conflict intensified.
This comes after President Bola Tinubu abolished government subsidies in 2023, which previously kept fuel prices artificially low.
The situation underscores the delicate balance between international market dynamics and domestic fuel security.
As the Dangote refinery seeks to prioritize the domestic market, the role of the Nigerian government in supporting energy costs becomes increasingly significant.
Further details and potential policy interventions are expected to emerge in the coming days.
