Nigerian billionaire and owner of the $20 billion Dangote refinery, Aliko Dangote, has revealed the reason behind the recent reduction in fuel prices in Nigeria. In an interview on Arise TV, Dangote attributed the price drop to market forces, rather than a deliberate effort to ease the economic burdens of the festive season.

The Dangote refinery announced a reduction in the ex-depot price of petrol to N899.50 per liter on December 19th, sparking fierce pricing competition in the downstream industry. This led to the Nigerian National Petroleum Corporation Limited (NNPCL) lowering its ex-depot price to N899 per liter. The refinery also partnered with MRS fuel station to offer fuel from its retail locations countrywide for N935 per liter.

Dangote emphasized that the price reduction was a response to market forces, and that he needed to protect the interests of his refinery, which has invested over $20 billion. He stated, "The price reduction is a response to the market, let me just put it that way. It is a refinery where we invested over $20bn and I think we have to try and protect our interests and also our investments."

The Nigerian billionaire also highlighted the significant impact of petroleum imports on Nigeria's foreign exchange. He noted that 40% of the country's demand on foreign exchange is through people dealing in petroleum products, and that allowing imports to come in would lead to a significant outflow of foreign exchange.

The fuel price reduction is expected to bring relief to Nigerians, particularly during the Yuletide season, which is characterized by increased interstate travel. Anthony Chiejina, Group Chief Branding and Communications Officer for Dangote Group, had announced that the refinery would offer a holiday discount on PMS, with consumers able to purchase another liter on credit, backed by a bank guarantee from Access Bank, First Bank, or Zenith Bank.

The Dangote Refinery, the largest single-train refinery in the world, has the potential to supply all of Nigeria's energy demands for refined petroleum products, plus more for export. The refinery is capable of producing 650,000 barrels per day.

The recent development is expected to have significant implications for the Nigerian energy market, and could potentially lead to increased competition and lower prices for consumers. As the largest refinery in Africa, Dangote's move is likely to be closely watched by industry stakeholders and policymakers.

In conclusion, the reduction in fuel prices in Nigeria, attributed to market forces and the need to protect investments, is a significant development in the country's energy market. As the Dangote refinery continues to play a major role in shaping the industry, its moves are likely to have far-reaching implications for consumers, investors, and the broader economy.