Dangote’s Direct Fuel Supply Boosts Naira and Reshapes Nigeria’s FX Market

Dangote’s Direct Fuel Supply Reshapes Nigeria’s FX Market

Nigeria’s foreign exchange outlook is shifting as the Dangote Refinery begins direct petrol supply to domestic marketers while exporting surplus products.

For decades, the country relied heavily on fuel imports — a practice that drained billions of dollars from foreign reserves and put pressure on the naira. With Dangote now refining and distributing fuel locally, the demand for foreign exchange to pay for imports is easing.

Economic analysts note that the move could help stabilize the naira, reduce inflationary pressures, and boost investor confidence in Nigeria’s economy. The refinery’s exports also provide the country with fresh inflows of foreign currency, creating a double advantage.

In addition, bypassing middlemen in the fuel supply chain is expected to cut costs for domestic marketers, potentially improving efficiency and transparency in the sector.

As the refinery ramps up operations, stakeholders see this as a major turning point.