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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Africa's richest man, Aliko Dangote, said that the recent reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, to N899.50 per litre at the Dangote refinery's loading gantry was primarily driven by market dynamics.

Legit.ng had earlier reported that on December 19, the Dangote refinery reduced its ex-depot petrol price from N970 to N899.50 per litre, which led to competition within the downstream sector.

Additionally, Dangote Industries announced a partnership with MRS Petrol stations to sell petrol at N935 per litre across its retail outlets nationwide, earning praise from Nigerians.

A few days after the Nigerian National Petroleum Company Limited (NNPCL) and other filling stations also adjusted their pump price.

Speaking on an AriseTV documentary, Dangote said his 650,000 barrels-per-day refinery will not only benefit Nigeria's oil sector but the entire economy.

He said:

"Forty percent of our foreign exchange demand stems from petroleum imports," Dangote said. "The more we import, the more we deplete our foreign exchange reserves, as most letters of credit for these imports send money out of the country."

Addressing criticism, Dangote acknowledged the inevitability of public scrutiny but emphasized his patriotic intentions.

"In the last 100 years of Nigeria's history, no one has invested $20 billion in a single project.

"I took this step out of love for my country and to leave a legacy. Investing in companies like Google or Apple would have been easier and more profitable, but I chose to make an impact here."

Dangote also spoke on the impact of NNPC limited on the refinery's success and addressed the $1 billion stake in the refinery, Punch reports.

He recounted how NNPC initially agreed to the investment but later opted to withdraw.

He explained:

"In 2021, NNPC proposed changes to the agreement, requesting to pay cash instead of the $2 crude deduction.

"When the payment was due, they abruptly backed out. Claims that NNPC gave us $1 billion to address liquidity issues are baseless and false."

Ealier Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPCL) retail stations have reduced their prices.

NNPC's pump price is currently N10 less than the N935 MRS filling stations are selling after the Oil and Gas's partnership with Dangote Refinery.

Other marketers, such as Bovas and AP sell at N985, Mobil at N1,015 and Conoil at N1,065 per litre.

Source: Legit.ng - Nigeria news.

Author: Dave Ibemere