By Daniel Oluwatobiloba Popoola
Nigeria’s petrol prices remain lower than those in the United States and several African countries, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has declared, defending the Federal Government’s deregulation of the downstream petroleum sector amid concerns over high fuel prices.
Lokpobiri made the declaration on Tuesday, 22 September, 2026, while speaking on Channels Television’s Politics Today. His comments came as the Dangote Petroleum Refinery and other marketers began reducing their depot prices following a decline in international crude oil prices, with petrol still selling at between N1,370 and N1,450 per litre in some locations despite the reductions.
Comparing Nigeria’s fuel prices to those of other countries, the minister said petrol remained cheaper in Nigeria than in the United States, Cameroon, Ghana and South Africa.
“In the US, the average, you know, liter of fuel is N1,633. In Nigeria, it’s on the average of N1,430. If you go to Cameroon, it’s N1,959. If you go to Ghana, it’s N2,070. If you go to South Africa, it’s N2,070. So Nigeria’s average cost of fuel per litre is still lower than,” he said.
Lokpobiri argued that Nigeria’s status as an oil-producing country and the presence of the Dangote Refinery did not automatically translate to lower petrol prices, citing the United States as an example of a major oil producer with higher fuel costs.
“As at today, the records available show that USA is the highest producer of oil and gas in the world. The United States is the highest producer of oil and gas in the entire world. They also have the highest refining capacity, but the fuel price per liter is higher than that of Nigeria. So despite the fact that Dangote Refinery is here, that doesn’t mean that the fuel price will be lower because Dangote Refinery is available. But what is important is that the regulation has also created a new economy,” he said.
The Minister maintained that deregulation had encouraged private investment in the oil and gas sector, arguing that the Dangote Refinery would not have survived had the government continued importing petrol and selling it below market price.
“But for the policy of deregulation, Dangote Refinery wouldn’t have been the most attractive IPO in the continent. If government was continuously importing, as NNPC was doing, and selling at a lower price than the market price, Dangote wouldn’t have been able to survive,” he said.
He explained that deregulation was designed to create opportunities for private-sector investment across the midstream and downstream sectors.
“Deregulation all over the world is to enable private sector businesses to thrive and all the businesses that are associated with the oil and gas sector,” he said.
Defending the removal of petrol subsidy, Lokpobiri disclosed that the resulting savings were being distributed to the three tiers of government through the Federation Account Allocation Committee, crediting the policy for enabling states to fund major projects that would previously have been unaffordable.
“These days we get 2.1 trillion being shared. This is the first time it is happening. You’ll recall that before this government came, about 27 states had no capacity to pay even salaries. Today, states are doing gigantic projects. It’s because of the savings that we made from this subsidy,” he said.
The minister noted that the burden of high energy prices was not unique to Nigeria, pointing out that consumers in the United States and Europe were similarly affected by global market dynamics.
“Oil and gas is a global commodity. What is sold in New York is what is also sold here. So, no matter what you may think, America, or Saudi Arabia, or anywhere in the world, energy prices will always be the same,” he said.
Lokpobiri stated that the government had no plans to reverse the deregulation policy despite the pressure on consumers, insisting the policy remained necessary to encourage investment.
He cited the Dangote Refinery’s supply of aviation fuel and rising foreign reserves as further evidence of gains from the oil and gas sector, disclosing that the Central Bank of Nigeria had recently reported that 85 per cent of Nigeria’s foreign reserves came from the oil and gas sector.
