Development Economist and Policy Analyst, Professor Kenny Ife, has described the Dangote Refinery’s fuel distribution initiative as a transformational move for Nigeria’s downstream petroleum sector.
This disclosure was made by Professor Kenny during an interview on Arise TV on Tuesday.
According to him, it will significantly reduce petrol prices, improve supply across the country, and bring greater transparency into the system.
“The fuel price is going to come down. That makes people have more money on their hands to spend and buy more food and all that. It’s going to become more available, which means no hoarding, not all these excuses about”
“They’re all struggling to get fuel at expensive costs and irregular supply. And then people can’t even deploy good quality equipment because they’re not sure of the standard of them, and then they’re cut off. So, all of those will disappear. What that means is companies will have better, lower costs,” he stated
According to Ife, the initiative is to benefit over 230 million Nigerians and 42 million Micro, Small, and Medium Enterprises (MSMEs) across the country. It is expected to drive down fuel prices and ease inflation by increasing the availability of petrol and diesel in both urban and rural areas.
He highlighted that the rollout is also expected to create jobs and revive many petrol stations that have shut down or are currently operating below capacity.
Beyond affordability and availability, Prof. Ife highlighted the environmental benefits of shifting toward Compressed Natural Gas (CNG) distribution. He described it as a win for sustainability, offering a cleaner, less polluting alternative to traditional fuels
While some depot owners have raised concerns about potential market disruption and the risk of being edged out, Ife dismissed those fears as “unfounded,” noting that the model allows retailers of all sizes to participate.
The Dangote Refinery’s efforts represent a major shift away from Nigeria’s dependency on imported fuel and an unclear subsidy system. The move will help eliminate hoarding and artificial scarcity, ensuring more stable and equitable access to fuel.