The Major Energies Marketers Association of Nigeria (MEMAN) has cited low fuel taxation as a key reason Nigeria’s petrol prices remain significantly cheaper than in other West African countries.
Speaking in an exclusive interview with The PUNCH on Monday, MEMAN’s Executive Secretary and CEO, Clement Isong, backed recent claims by Dangote Group President, Aliko Dangote, who stated that Nigerians pay only about 55% of what their regional neighbors pay for petrol.
Isong confirmed the disparity, noting that in some West African nations, fuel prices can be up to 50% higher than in Nigeria. “Yes, in some countries, Nigerians are paying just half the cost,” he said.
He attributed this to Nigeria’s relatively low fuel taxes. “Fuel taxation in Nigeria is minimal — just one percent in total, split between 0.5% for infrastructure funding and 0.5% for the NMDPRA. In other countries, fuel taxes are much higher, which drives up prices,” Isong explained.
In addition to lower taxation, Isong pointed to Nigeria’s large-scale fuel consumption as a contributing factor. “We benefit from economies of scale. With a high turnover and large consumer base, the cost per litre is reduced. Nigeria’s economy is among the largest in Africa, and its energy demand is concentrated and constant. That drives prices down compared to smaller markets where demand is slower,” he said.
Isong also acknowledged the impact of the Dangote Refinery, which he said has been instrumental in maintaining lower fuel prices locally. “For the past couple of months, Dangote has been the price leader, keeping petrol prices low in Nigeria,” he noted.
When asked about the potential for smuggling due to Nigeria’s lower fuel prices — despite the removal of fuel subsidies — Isong said it was difficult to assess. “I can’t say for sure. Smuggling may have decreased, but whether it has stopped completely, I don’t know,” he responded.
Over the weekend, Aliko Dangote addressed ECOWAS leaders during a visit to the Dangote Refinery, reinforcing his earlier statement that Nigerians are paying far less for fuel than neighboring countries. According to Dangote, petrol at his refinery currently sells for between ₦815 and ₦820 per litre, while the average price across the region is about $1 per litre — roughly ₦1,600.
He stressed the broader impact of the refinery on the economy, noting how local refining has helped reduce fuel costs and supported key sectors. “When we started producing diesel last year, the price dropped from ₦1,700 to ₦1,100 almost immediately. That drop benefited multiple industries, especially agriculture and mining,” Dangote said.
He also called for stronger economic integration across Africa, encouraging more trade among African nations to strengthen the continent’s economies.
Despite the benefits, some fuel marketers and importers have raised concerns, saying that the Dangote Refinery’s competitive pricing has affected their profits, resulting in significant financial losses.
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