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, the think tank noted that Dangote Refinery has become the key mechanism for reducing petrol prices and lowering transport fares.

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

“Dangote’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,” it stated, emphasising that Dangote Refinery’s fuel distribution strategy, which involves deploying 4,000 Compressed Natural Gas (CNG) trucks nationwide, would lower pump prices, curb inflation, and support over 42 million MSMEs (Micro, Small and Medium Enterprises).

The report stressed that the Nigerian economy was 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.