Dangote Refinery Lowers Petrol Price by ₦75 as AFC Provides $600 Million for Fertiliser Expansion

Dangote Petroleum Refinery has cut its ex-gantry price of Premium Motor Spirit (PMS) by ₦75 per litre to ₦1,175, while the Africa Finance Corporation announced a $600 million commitment to the group’s fertiliser expansion programme.

The two developments were made public today, June 16, 2026.

The refinery reduced its depot price from ₦1,250 to ₦1,175 per litre, effective midnight Tuesday, and lowered the coastal price per metric tonne from ₦1,595,790 to ₦1,495,215. Dangote explicitly attributed the adjustment to falling global oil prices following the de-escalation of Middle East tensions after the US-Iran memorandum of understanding. Brent crude has traded between $79 and $83 per barrel in recent sessions, down from highs above $100 during the earlier crisis.

This marks another price movement in a volatile market where petrol costs had risen sharply during the period of heightened geopolitical risk. Retail pump prices are expected to adjust gradually depending on marketers’ margins, logistics, and competition. Some consumers have welcomed the reduction on social media, though many continue to press for larger cuts to return closer to pre-crisis levels.

Separately, the Africa Finance Corporation signed a $600 million facility with Greenview Fertiliser Corp to support a $7 billion expansion that will increase urea production in Nigeria from 3 million to 9 million metric tonnes per annum and establish a new 3 million MTPA plant in Ethiopia. The Ethiopian project is a joint venture between Dangote Group (60%) and Ethiopian Investment Holdings (40%).

The financing follows the repayment of earlier AFC loans to the Dangote Refinery. The expansion includes gas infrastructure, power generation, and blending facilities, with gas supply secured through a separate $4.2 billion agreement with China’s GCL Group. Operations in Ethiopia are targeted for 2029.

Aliko Dangote described the AFC funding as an important milestone for expanding capacity and supporting agricultural productivity. AFC President Samaila Zubairu said the investment addresses Africa’s fertiliser deficit and long-term food security needs as the continent’s population grows toward 2.5 billion by 2050.

The announcements come amid ongoing debate about Dangote Group’s dominant role in Nigeria’s economy. While the group has invested heavily in refining and agriculture, critics have previously raised questions about market concentration and the pace of benefits reaching ordinary consumers. Supporters argue the projects enhance domestic production and reduce import dependence.

Whether the latest petrol price cut translates into meaningful relief at the pump will depend on how quickly and fully marketers pass on the reduction. The fertiliser projects, meanwhile, face execution risks typical of large-scale infrastructure in the region, including timelines in remote locations and exposure to global commodity cycles.