*A report of an economic think-tank presented by Financial Derivatives Company Limited indicates the Dangote Petroleum Refinery has been identified as crucial to reducing inflation in Nigeria

Isola Moses | 绿帽献妻

Dangote Petroleum Refinery has been identified as crucial to reducing inflation in Nigeria, according to a report by the Financial Derivatives Company (FDC) Limited think-tank.

In its recently published Lagos Business School (LBS) Executive Breakfast Presentation for July 2025, the think-tank noted that Dangote Refinery has become the key mechanism for reducing petrol prices and lowering transport fares.

The report, presented by Mr. Bismarck Rewane, Managing Director and Chief Executive Officer (CEO) of FDC, added that Dangote鈥檚 uniform pricing policy and credit facilities to marketers represent a game changer that will revolutionise Nigeria鈥檚 downstream oil sector by cutting logistics costs.

鈥淒angote’s uniform pricing and credit to marketers is a game changer and a catalyst for more private sector investment.

“The initiative is set to revolutionise Nigeria’s oil downstream business by cutting logistics costs and by spending over N1.7 trillion annually,鈥� it stated.

The report also emphasised that Dangote Refinery鈥檚 fuel distribution strategy, which involves deploying 4,000 Compressed Natural Gas (CNG) trucks nationwide, will lower pump prices, curb inflation, and support over 42 million MSMEs.

The report stated: 鈥淲ith 4,000 CNG-powered trucks delivering refined products directly to the doorsteps of end-users, the move will lower pump prices, curb inflation, and support over 42 million MSMEs.鈥�

It further stressed the Nigerian economy is experiencing a classic oil price paradox: when global oil prices rise, the government benefits financially and the Naira strengthens, yet there is little advantage for the average person. Conversely, when oil prices fall, consumers rejoice at lower petrol prices while the government suffers financially.

On the international front, the report observed that the global economy has swung from exaggerated fears of market volatility and uncertainty to the irrational exuberance of momentum traders and speculators, who are profiting by exploiting the anxieties of those fixated on maintaining the status quo.