The Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadiri, has expressed optimism that the pump price of petrol could fall to as low as ₦800 per litre, following recent developments in the petroleum sector.
This comes after the Dangote Petroleum Refinery reduced its ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, to ₦840 per litre—a ₦40 cut from the previous rate of ₦880. The price slash occurred just days after the Nigerian National Petroleum Company Limited (NNPCL) raised the pump price in Lagos to ₦925 per litre. Notably, this latest reduction followed a recent upward adjustment by the refinery to ₦880 only a week prior.
Speaking during an interview on Channels Television, Ajayi-Kadiri described the move as a “welcome development” and projected further price reductions as operational strategies by Dangote Refinery take full effect.
“You cannot blame anyone for producing and ensuring effective delivery,” he remarked.
From a manufacturer’s perspective, Ajayi-Kadiri said the fuel price cut signals better times ahead:
“If I may use the Gen Z term: ‘Joy is coming’. The long term is going to be better. I see the price coming down to ₦800, and that’s what manufacturers want.”
He highlighted the heavy toll energy costs have taken on the manufacturing sector, revealing that manufacturers spent over ₦1.1 trillion last year on alternative energy sources due to unreliable power supply and poor fuel quality.
Looking forward, he envisions not only a continued drop in diesel prices, but also a more competitive market that will attract new players.
“I don’t think sentiment should discourage any investor aiming to improve the lives and wellbeing of Nigerians.”
Ajayi-Kadiri lamented the struggles of small and medium enterprises (SMEs) due to erratic electricity, stating that most businesses experienced an average of three to four power outages daily, with just 18 hours of supply in a whole year. He stressed that 40% of production costs in Nigeria are energy-related, underlining the urgency for affordable and reliable fuel.
He called for increased government support for Dangote Refinery and similar ventures to help drive down prices and end fuel scarcity once and for all.
“This is the first time our oil endowment is becoming a blessing and not a burden. We must all support this initiative,” he concluded.
