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Dangote to Commence Uniform Fuel Pricing Nationwide from August
Dangote Refinery has announced it will begin nationwide distribution of petrol and diesel with uniform pricing from August 15, 2025—a first-of-its-kind initiative by a private company in Nigeria. The rollout will be supported by free logistics, using a fleet of 4,000 Compressed Natural Gas (CNG)-powered tankers, and includes credit facilities for bulk buyers as well as direct sales to major fuel users across sectors.
The introduction of uniform petrol pricing is expected to eliminate the need for the Petroleum Equalisation Fund (PEF), helping to reduce fiscal burden on the government. In addition, the initiative is set to improve fuel availability, lower energy distribution costs, and ease inflationary pressures, particularly in underserved and remote areas.
Effects of Insecurity and Border Proximity on Inflation: Borno vs. Katsina
Nigeria’s May 2025 inflation report shows Borno with the highest rate at 38.93%, while Katsina recorded the lowest at 16.25%. Though both are northern border states, the disparity reflects structural contrasts. Borno’s proximity to porous borders, compounded by insurgency, enables unchecked food smuggling and disrupts supply chains. Katsina, with relatively lower insecurity and tighter market links to Kano, sustains greater price stability. The divergence highlights the inflationary risks of unsecured border economies and the urgency of coordinated security and trade controls.
Beyond the tax reform – optimising tax revenue in a struggling economy
A new tax regime is expected to take effect in July following the National Assembly’s passage of the contentious tax reform bills. The fiscal changes aim to streamline tax administration, broaden the tax base, and reduce the burden on low- and medium-income countries. The reforms also target an increase in Nigeria’s tax-to-GDP ratio from 10.8% to 16–20%, aligning it with the Sub-Saharan African average.
However, the cost of tax collection remains high. The new fiscal framework pegs it at 3%, which is significantly above benchmarks in countries like the United Kingdom (0.51%), Malaysia (1.78%), Indonesia (0.41%), and Singapore (0.72%). In 2024, collection costs reached ₦1 trillion, or 4% of non-oil revenue.
Moreover, the newly introduced 4% development levy raises Nigeria’s consolidated corporate tax rate to 34%—higher than rates in peer economies such as Singapore (17%), Malaysia (24%), and Indonesia (22%). This has raised concerns that elevated tax rates could deter private investment. Revenue optimization may be better achieved by improving corporate profitability and household income rather than further increasing tax burdens.
In our latest policy brief, we dive deep into the tax architecture, explore the cracks, and highlight what must happen next if Nigeria hopes to fund growth without stifling it.
