Nigeria’s Minister of Finance, Wale Edun, has said the current increase in petrol prices reflects market realities, urging Nigerians to appreciate the country’s growing local refining capacity.
Edun made the remarks during an interview aired on Politics Today on Channels Television on Wednesday, where he explained that the rise in fuel prices is largely driven by global market forces and ongoing geopolitical tensions in the Middle East.
According to the minister, the present pricing system is part of the market-driven mechanism introduced under the administration of Bola Ahmed Tinubu.
“The market price for petroleum products is what has been instilled by Mr. President—a mechanism that was missing for so long. It is important to understand that this is not a one-way street,” Edun said.
He pointed to the price adjustments by Dangote Refinery as an example of how market dynamics can influence fuel prices.
“We have seen Dangote reduce prices from around ₦1,200 to just over ₦1,000 or ₦1,050; those are the natural dynamics of the market,” he explained.
The minister noted that Nigeria’s economic resilience is partly supported by private sector investments, particularly the refinery built by Nigerian industrialist Aliko Dangote.
“The resilience that the Nigerian economy has is coming largely from the fact that we do have that investment by the private sector, by Alhaji Aliko Dangote, in refining, and we need to support our refiners just as others are supporting them to keep petroleum products flowing,” he said.
Edun added that Nigerians should be grateful for the country’s growing ability to process its own crude oil into petroleum products.
“I think we should be thankful at this time for the capacity we have in Nigeria to refine crude into petrochemicals and petroleum products,” he stated.
The Dangote Refinery—Africa’s largest refinery—began petrol production in 2024, marking a major shift in Nigeria’s energy landscape. The 650,000-barrel-per-day facility had earlier commenced the production of diesel and aviation fuel in January of that year.
However, the refinery recently adjusted petrol prices several times in response to fluctuations in the global crude oil market, particularly as tensions in the Middle East continue to influence international energy prices.
In a statement explaining one of its price adjustments, the company said it reduced prices in response to a drop in global crude oil prices.
“As responsible corporate citizens operating in a high-governance code and ethical environment, we believe it is imperative to reduce the price of our products as a reflection of the decline in global crude oil prices,” the company stated.
The refinery also clarified that crude supplied under the Naira-for-crude arrangement is still priced according to global benchmark rates, with an additional premium converted to naira using the prevailing exchange rate.
Despite global uncertainties, Edun maintained that Nigeria’s economy is showing signs of resilience.
“We are on our way out of the woods. We can see the light at the end of the tunnel as long as we stay the course,” he said.
He added that the government is focused on strengthening the economy’s ability to withstand external shocks, including conflicts such as the ongoing Russia–Ukraine War and rising tensions in the Middle East.
