As stakeholders search incentives for native refiners,
BY CHIKA IZUORA and CEES HARMON, Lagos
The continuing competitors on the pricing of Premium Motor Spirit (PMS) additionally referred to as petrol, will guarantee Nigerians take pleasure in higher petrol pricing with incentive to native refiners, says oil sector stakeholders.
This they stated, corroborating the group chief govt officer of the Nigerian Nationwide Petroleum Firm Restricted (NNPCL), Bayo Ojulari, who assured Nigerians that the continuing worth competitors within the downstream petroleum sector will finally profit shoppers.
Talking on Sunday, Ojulari described the present market tensions as a pure consequence of Nigeria’s transition from whole import dependence to home refining.
“The place there’s wholesome competitors, the consumers are the last word beneficiaries. And I believe for us, we have to hold our minds that the market will stabilise.After some time, there’ll be some stress, as a result of we’re going by a significant transition,” Ojulari instructed journalists after briefing President Bola Tinubu in Lagos on Sunday.
The remarks is towards the backdrop of an intense worth warfare that has seen petrol costs crash from over N1,200 per litre in November 2024 to as little as N739 per litre at some shops in December 2025, pushed primarily by competitors between Dangote Refinery, NNPCL and unbiased entrepreneurs.
“On the finish of the day, I can let you know that Nigerians on the road are going to be the beneficiaries,” Ojulari declared.
Clarifying NNPCL’s position within the deregulated market, Ojulari emphasised that the corporate is now not answerable for petroleum product pricing or regulation underneath the Petroleum Business Act.
The very first thing you must know is that the PIA did one thing basic. Earlier than the PIA in 2021, which rolled in 2022, the whole lot was underneath NNPC, together with some laws. The PIA divided the roles of regulation from what I’ll name the enterprise,” he defined.
Ojulari added, “The NMDPRA is answerable for all downstream regulation and midstream, as you realize, and the NUPRC is answerable for all upstream laws.
“So it’s crucial that Nigerians perceive that post-PIA, we as NNPC are usually not regulators.”
He burdened that, NNPC has been instituted by the PIA to change into “a business firm, which suggests an organization that should compete profitably and achieve success profitably.”
Ojulari disclosed that NNPCL now not receives federation allocations and should increase finance independently “like another enterprise.”
Reacting to this growth, the Crude Oil Refiners Affiliation of Nigeria (CORAN) stated, the continuing worth fluctuations for petrol will stand to learn Nigerians afterwards.
The affiliation stated, market stability is the best choice for the nation the place pricing is decided by market operations that can also be sustainable.
CORAN spokesman, Eche Idoko, whereas chatting with LEADERSHIP stated, what’s taking part in out now could be momentary worth changes that’s not sustainable.
Idoko stated, if the Nigerian Midstream and Downstream Petroleum Regulatory Authority(NMDPRA) and the Nigerian Upstream Petroleum Regulatory Authority (NUPRC) would totally implement all trade incentives particularly because it impacts native refiners, Nigeria would witness extra high quality and secure provide and pricing mechanism.
In keeping with Idoko, if the federal authorities sustains and increase the naira-crude initiative the market will Nigerians will take pleasure in cheaper price of petrol
He stated, after cautious overview of the coverage , it was thought of an enormous success because it helped to strengthen the naira and crashed the worth petrol. The affiliation, he stated, had made a number of shows and demand to authorities, particularly, to NMDPRA to ascertain a mechanism for pricing that can decide a benchmark to information pricing module.
He stated, what’s taking part in out now could be clear absence of regulatory necessities that won’t supply the market the advantages of petroleum trade stability.
LEADERSHIP stories that one of many calls for of the affiliation is the institution of a Refinery Intervention Fund to help native refineries increase their capability from the present 27,000 barrels per day to about 400,000 barrels per day.
This follows a sequence of different consultations and conferences by CORAN with authorities businesses and representatives with a view to foster the core points affecting native refining of crude in Nigeria.
Prior to now, the affiliation had met with the NUPRC, together with naira-crude provide as a result of the matter is captured underneath the home crude oil provide obligation which is clearly stipulated underneath the Petroleum Business Act (PIA).
Oyarekhua added that: “The modular refineries which can be presently producing are starved of crude and even when the crude is on the market, the native producers need them to pay for it in US {dollars}.”
This, based on the place of CORAN, have to be addressed to allow Nigerian take pleasure in self-sufficiency in crude refine.
Idoko, knowledgeable that preliminary association is to provide crude to Dangote refinery on the understanding that it’s going to cut back stress on naira and guarantee optimum efficiency of the refinery and make product accessible and reasonably priced helped in stabilzing the home market.
Nevertheless, the NNPC Ltd has begun discussions with the Dangote Oil Refinery to increase its contract for supplying crude oil within the naira forex, the corporate stated.
A managing director of a significant petroleum marketer who wouldn’t need to be named instructed our correspondent in confidence that the worth warfare is coming with extreme penalties and repercussions.
In keeping with him, each the entrepreneurs and Dangote are dropping a lot and the plenty can pay in the long term.
“All of the gamers will finally need to get well the loss incurred within the ongoing battle which isn’t sustainable,” he stated.
Nevertheless Idoko, stated burdened that, if authorities can implement all incentives by 2026, native refiners will assure high quality, and reasonably priced costs of petrol far more decrease than what it’s now.
In the meantime, the chief govt officer of the Centre for the Promotion of Personal Enterprise (CPPE), Dr. Muda Yusuf stated, the event is welcome if the competitors is amongst refineries, and never competitors between refiners and importers.
In that case, based on him, there must be honest laws to make sure a stage taking part in subject.
He stated, the sharp drop in petrol costs displays the optimistic results of deregulation and home refining, however warned that sustainability stays key.
“There is no such thing as a doubt that competitors, particularly Dangote Refinery’s entry, has corrected a few of the distortions in pricing. Nevertheless, the vital situation is whether or not these costs are cost-reflective and sustainable. If costs fall beneath financial actuality, some entrepreneurs could exit the market, which may cut back competitors in the long term,” Yusuf stated.
He added that, whereas shoppers are having fun with momentary reduction, coverage consistency and regulatory neutrality would decide whether or not the advantages final.
Then again, power economist, Femi Ajayi, stated: “What we’re seeing is basic market adjustment Nigeria moved from a monopoly and subsidy-driven system to a aggressive market virtually in a single day. In such transitions, worth volatility and stress are inevitable.”
Ajayi famous that, home refining has essentially altered Nigeria’s value construction. “Producing petrol domestically reduces publicity to overseas change dangers and delivery prices, which explains why costs are coming down. However the hazard is that smaller entrepreneurs who purchased at larger costs could face extreme balance-sheet stress, resulting in consolidation, ” Ajayi said.
On his half, monetary economist at Nnamdi Azikiwe College, Dr. Felix Echekoba, cautioned that decrease pump costs alone don’t mechanically translate into broader financial reduction. “Sure, Nigerians are paying much less on the pump at the moment, however inflation remains to be excessive and incomes stay weak. The true take a look at is whether or not these worth reductions feed into decrease transport prices, meals costs and industrial enter prices,” he stated.
“That is the primary time in many years that Nigeria is experiencing worth discovery pushed by home provide. Dangote Refinery has modified the sport, and NNPCL’s position as a business participant reasonably than a regulator is vital,” he added.
Recall that the worth warfare intensified dramatically in December 2025 when Dangote slashed its ex-depot worth from N970 to N699 per litre, forcing different gamers to observe swimsuit or danger dropping market share.
MRS filling stations, Dangote’s retail associate, started promoting at N739 per litre nationwide, whereas NNPC shops dropped costs from N875 to between N825 and N840 per litre relying on location. Impartial entrepreneurs adopted, with some promoting as little as N865 per litre.
Information from Petroleumprice.ng confirmed that Dangote Refinery remodeled 20 worth changes in 2025 alone.
