Nigeria's new Dangote Refinery may ease fuel shortages

Significance

With the nominal capacity to fulfil all of Nigeria’s petrol demand, hopes are high that Dangote may both help end recurring fuel shortages in the country and help stabilise or even reduce fuel prices.

Impacts

• Flooding, insecurity and increased transport costs may drive up food prices further.
• The NNPCL’s deal to sell crude oil to Dangote Refinery in naira may reduce federal government revenues.
• Unemployment may increase in the coming months due to interest rate hikes and broader economic woes.