The Lekki mega-refinery in Nigeria has sparked heated debates about its impact on the fuel market and the national economy as a whole. Since it began production last September, expectations were high that it would lower gasoline prices for Nigerian citizens. However, the reality on the ground is proving more complex than expected.
The tycoon Aliko Dangote, who is behind this colossal project, has invested astronomical sums to realize a refinery capable of producing fuel on a large scale. Despite these efforts, obstacles stand in his way. On the one hand, the difficulty in sourcing crude oil locally is weakening the production chain. On the other hand, fierce competition with importers of refined products is creating obstacles to the sale of its production.
Resellers, for their part, are expressing legitimate concerns. They point to the high prices charged by the Lekki refinery, which force them to pass these costs on to consumers. The prospect of a Dangote monopoly on the gasoline market raises fears of a possible price increase, going against the hoped-for reduction targets.
Faced with these challenges, adjustments are underway. The national oil company is encouraging distributors to supply themselves primarily from the Lekki mega-refinery, in the hope of boosting its production. In response, Aliko Dangote recently announced a slight drop in the price of its fuel, a symbolic gesture to show its gratitude to Nigerians.
The coming weeks will be crucial for the Lekki refinery. Optimizing logistics processes and transportation costs could allow for a real drop in gasoline prices, in response to the expectations of the population. The challenge remains, but the joint effort of the oil sector players offers encouraging prospects for the Nigerian economy.