Edun believes local refining has been helpful to the economy.
Nigeria’s Minister of Finance, Wale Edun, says the current increase in fuel prices reflects prevailing market realities, urging Nigerians to appreciate the country’s growing local refining capacity.
Speaking during an interview on the Politics Today aired on Channels Television, Edun explained that the recent spike in petroleum product prices is largely driven by global market forces, particularly the ongoing tensions in the Middle East.
The crisis has pushed up global crude prices in recent weeks, resulting in higher fuel costs and increased transportation fares across Nigeria.
According to the minister, the current pricing structure reflects a market-driven system introduced by President Bola Ahmed Tinubu after years of regulated fuel pricing.
“The market price for petroleum products is what has been instilled by Mr. President—a mechanism that was missing for so long,” Edun said, noting that fuel prices now respond naturally to changes in global oil markets.
He pointed out that the operations of the Dangote Refinery demonstrate how market dynamics can also lead to price reductions. According to him, the refinery recently lowered petrol prices from about ₦1,200 per litre to just above ₦1,000.
Edun credited the resilience of Nigeria’s economy partly to private sector investments in refining, particularly by Nigerian industrialist Aliko Dangote. He stressed that supporting local refiners would help ensure a steady supply of petroleum products.
“I think we should be thankful at this time for the capacity we have in Nigeria to refine crude into petrochemicals and petroleum products,” he said.
The Dangote Refinery—Africa’s largest refinery—commenced petrol production in 2024, marking a major shift in Nigeria’s energy sector. The 650,000-barrel-per-day facility had earlier begun producing diesel and aviation fuel in January of the same year.
Amid the ongoing Middle East tensions, the refinery has adjusted petrol prices several times in response to fluctuations in the global crude oil market.
Despite these global pressures, Edun maintained that Nigeria’s economy remains on a steady path. He said government reforms are strengthening the country’s resilience against international shocks.
“We are on our way out of the woods. We can see the light at the end of the tunnel as long as we stay the course,” the minister added, noting that global crises—from the prolonged war in Ukraine to the current Middle East tensions—continue to affect economies worldwide.
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