Dangote Refinery Will Crash Fuel Costs, Revive Manufacturing — MAN DG

Speaking in an exclusive interview with Channels Television, the Director General of the Manufacturers’ Association of Nigeria (MAN), Segun Ajayi-Kadir, expressed optimism that the intervention of the privately owned $20 billion Dangote Refinery will bring much-needed relief to manufacturers.

According to him, the refinery’s plan to distribute fuel freely across the country will eliminate profiteering middlemen and transporters who have long inflated production costs. He described the refinery’s early success as proof that the government should exit the business of fuel refining and focus instead on regulation and creating an enabling environment.

“If we didn’t stop the subsidy, the subsidy would have stopped or killed us,” Ajayi-Kadir said, defending the decision to remove fuel subsidies. “Though the initial impact was devastating, the move was necessary. Logistics costs went up, inflation increased, but we’ve seen some relief through ongoing reforms.”

He praised the Dangote Refinery for positioning Nigeria once again as a net exporter of refined petroleum products, a sharp contrast to years of reliance on imported fuel despite the country’s status as a crude oil producer.

“Before the refinery came on stream, we were at the mercy of global shocks. A conflict in the Middle East could have pushed petrol prices to ₦1,300 per litre or more. But now, prices are dropping, and that’s the power of private sector efficiency,” he noted.

Ajayi-Kadir dismissed claims that the refinery represents a monopoly, insisting that other players are simply not delivering.

“It’s not a monopoly when others exist but fail to perform. You can’t fault Dangote for stepping up where others have fallen short. Fuel queues, erratic supply, and unpredictable pricing have been the norm under other operators. Dangote is simply doing what they haven’t.”

He revealed that Nigerian manufacturers spent over ₦1 trillion last year on diesel and ₦2 trillion on unsold inventory — a direct result of energy-related challenges. With diesel prices now dropping, he believes the new refinery will ease production costs significantly.

“Forty percent of our production cost is energy-related. The free distribution planned by Dangote could bring fuel prices down to ₦800 per litre, which would be a huge relief for businesses,” he said. “That’s what we need — reliability, affordability, and efficiency.”

On the controversy surrounding Nigeria’s four government-owned refineries, Ajayi-Kadir was clear in his stance.

“The government should sell them. They’ve become a drain on the economy. Public assets run without accountability will never succeed. We have capable Nigerian investors who can turn things around if given the chance.”

He urged the government to also address broader issues such as power supply, the incompetence of electricity distribution companies, and worsening insecurity, which he says is forcing many manufacturers — especially in the North-East — to shut down.

“Sixty percent of our members in the North-East have closed down due to insecurity. If we fix power and security, we can bring these businesses back to life,” he added.

Looking ahead, the MAN boss expressed confidence that Nigeria’s industrial future remains promising.

“If I may use Gen Z language, ‘joy is coming’. With sustained private sector participation and the right government support, we can revive manufacturing, reduce costs, and build an economy that truly works.”