LAGOS – Wale Tinubu,Group Chief Executive, Oando Plc, has been awarded the prestigious Lifetime Achievement Award at African Energy Week (AEW) 2025, in recognition of his unwavering commitment to building Oando into one of Africa’s foremost integrated energy companies.
Conferring the award, the African Energy Chamber cited Tinubu’s dedication to advancing Africa’s energy security, his Abold leadership in navigating Oando through periods of uncertainty and transformation, and his pivotal role in demonstrating the power of indigenous companies in driving industrial growth and energy sovereignty across the continent.
Tinubu has been a steadfast champion of Africa, charting its own destiny by harnessing its abundant resources for the benefit of its people. A firm believer that anyone can achieve greatness with vision, determination, and the right team around them, he has led Oando from its modest beginnings as a local downstream operator into a multinational integrated energy player with a robust portfolio spanning exploration and production, power, and renewables.
His leadership has not only positioned Oando as a continental leader but also symbolized African ambition, ingenuity, and resilience.
The Lifetime Achievement Award is widely regarded as a benchmark of excellence at AEW, reserved for leaders whose contributions have left an indelible mark on Africa’s energy sector.
The global oil market has once again been thrust into turmoil, this time by the escalating conflict between Israel and Iran. As tensions flare in the Middle East—a region central to global energy supply—oil prices have become increasingly volatile, swinging in response to fears of disruption. On Tuesday, June 17, five days after the new hostilities, oil prices were driven even higher with Brent and WTI up more than 2 percent.
Equity markets were also initially roiled after the surprise strike but have since stabilised.
As the deadly salvo entered the fifth day, there were growing concerns that the conflict would spread across other world’s key oil-and-gas-producing regions, including oil-dependent nations like Nigeria. The latest outbreak is a critical addition to the floundering global economy that is teetering on the cusp of a global recession.
Nigeria relies on crude oil for the majority of its foreign exchange earnings and a substantial portion of government revenue. While a spike in oil prices might seem beneficial on the surface, it often comes with a double-edged sword, portending a combination of risks and upsides for the economy. Higher prices can boost revenue, but they also inflate the cost of petrol subsidies—already a major fiscal burden—and disrupt budget assumptions based on stable benchmarks.
Surging oil prices offer a temporary fiscal cushion, but for Nigeria, the real battle is at home—against inflation, currency devaluation, and shaky investor confidence. Can the country withstand another global storm without slipping deeper into crisis?
A decade-old conflict between Israel and Iran that was never quite gone “cold” rapidly heated up again on the morning of Friday, June 13, when Israel launched fusillades of air strikes on Iran in what its leader claimed were “pre-emptive” measures to prevent Iran from building nuclear armament, but many countries consider the strike as unprovoked and unpremeditated, as talks were still ongoing between Iran and the US over Iran’s JCPOA nuclear programme deal, which Iran says is for peaceful means. In the days after the first attack against the Iranian nuclear programme and military leadership, more than two hundred people have been killed in Iran and at least two dozen in Israel, with over 17 million residents of Tehran in flight mode.
Of course, many of the initial impacts were predictable: oil prices soared, stock prices plunged, and bonds rallied as investors sought safety amidst the market turbulence and uncertainty. However, the longer-term effects are less easily anticipated, given that they depend on the extent to which the conflict escalates.
Economies around the world are currently grappling with elevated geopolitical tension triggered by the Russian-Ukrainian war and the Israel-Hamas conflict. There is also the profound uncertainty created by the unprecedented tariff disruptions by the Trump administration, together with the escalating hostilities. Brent crude has been pushed toward $73–74/barrel, up roughly 0.5 percent, with intraday jumps over 2 percent. The latest spike followed a similar trend of oil price shocks triggered by key geopolitical flashpoints, including leadership assassinations and military escalations. Each event, from Iran’s missile response in April 2024 to the toppling of Syria’s President in December 2024, has added volatility, fuelling investor anxiety.
Oil price volatility has now rippled into currency and inflation pressures across oil-importing economies—including Nigeria.
Rising oil prices bolster the U.S. dollar, increasing demand for safe-haven currencies. For Nigeria, this translates into naira weakness: the official rate hovers near ₦1,543/USD, while the parallel market remains around ₦1,550–₦1,600/USD. A weaker naira inflates the cost of imports, feeding domestic inflation, already near 23 percent. To curb the outflow of foreign exchange and stabilise the currency, the Central Bank of Nigeria has leaned heavily on intervention and tight monetary policy. Rates remain near 27.5 percent, following multiple hikes totalling over 875 basis points since 2024.
The combined effect: an elevated cost of living, elevated borrowing costs, and tighter budgetary space. As geopolitical uncertainty persists, Nigeria’s currency and inflation outlook remain at risk, requiring vigilant policy response to prevent imported inflation from undermining economic resilience.
The unfolding Israel–Iran conflict has rattled investor sentiment, with implications for Nigeria’s capital flows. According to SBM Intelligence, escalating hostilities have triggered “risk-averse sentiment in global markets”, endangering Nigeria’s ability to attract foreign direct investment (FDI) and portfolio inflows. The ripple effects include stalled infrastructure projects, slower job creation, and increased sovereign borrowing costs due to heightened country risk premiums.
According to oilprice.com, Nigeria’s crude oil prices have climbed in the five days of the war—Bonny Light nearing $80/barrel (traded at $78.62 on Tuesday), with Brass River and Qua Iboe fetching ~$76, surpassing the government’s $75 budget benchmark. While this temporarily boosts FX inflows and reserves, reliance on locked-in contracts means windfalls are inconsistent. More critically, geopolitical uncertainty raises borrowing costs and undermines FDI inflows even amid higher revenues.
The Centre for the Promotion of Private Enterprise (CPPE) warns that elevated energy prices and global tensions may trigger imported inflation and “shaken investor confidence”, potentially curtailing portfolio flows. Firms with Middle East ties face supply chain disruptions, while financiers reassess risk exposure.
In sum, despite transient oil-price gains, long-term investor confidence in Nigeria is under strain. Policymakers must urgently reinforce fiscal stability, reassure foreign investors, and mitigate capital flow volatility to safeguard economic resilience.
Looking ahead: Policy response and economic resilience
In this moment of global uncertainty, Nigeria faces a delicate balancing act. The government must navigate rising oil income without losing grip on inflation, public spending, or exchange rate pressures.
While the recent oil price rally provides Nigeria with some fiscal breathing space, the country’s long-term economic resilience hinges on how effectively it manages the inflationary fallout and rising geopolitical risks. Experts emphasise that improving domestic refining capacity, increasing oil production, and deploying proactive monetary measures are key to mitigating external shocks.
The anticipated nationwide distribution of petrol by the Dangote Refinery in August 2025 offers a potential buffer against imported inflation and forex strain from fuel imports. However, until then, Nigeria remains highly vulnerable to the ripple effects of the Israel-Iran conflict and global energy market instability.
Ultimately, Nigeria stands at a pivotal crossroads: strategic policy coordination, fiscal discipline, and timely economic reforms are essential not just to navigate the current crisis but to convert global volatility into an opportunity for sustainable growth. This moment demands bold leadership and a clear-eyed commitment to long-term macroeconomic stability.
The Dangote oil refinery in Nigeria, Africa’s largest crude processing facility, is set to ship its first gasoline cargo out of the African region with a vessel heading for Asia, a source with knowledge of the plans told Reuters on Wednesday.
The cargo of 90,000 metric tons of gasoline is set to be loaded by independent oil trader Mercuria this coming weekend, according to the source.
The Dangote refinery, which began operations last year, has so far exported gasoline only to the West African region.
“We sell our products to those who are willing to give us the highest price. It’s the buyer’s right to take the products to any destination of their choice,” a spokesperson for the Dangote refinery told Reuters.
The 650,000-barrels-per-day refinery has been buying increasing volumes of U.S. crude WTI in recent months, for both logistical and technical reasons.
WTI offers higher yields of reformate and has better gasoline blending capabilities, Randy Hurburun, senior refinery analyst at Energy Aspects, told Bloomberg earlier this month.
Dangote began fuel production in 2024. The refinery started up in January last year with the launch of diesel and naphtha production and began producing gasoline in September.
The refinery, built by Africa’s richest person, Aliko Dangote, has a total processing capacity of 650,000 bpd, which makes it Africa’s biggest and one of the world’s largest crude processing sites.
The refinery is expected to meet 100% of Nigeria’s demand for all refined petroleum products and will also have a surplus of each of the products for export.
Dangote will also export polypropylene to the global markets under an exclusive partnership with petrochemicals distributor Vinmar International.
“This collaboration marks an important step in expanding the reach of high-quality polypropylene produced at Dangote’s new refinery and petrochemical complex in Lekki, Nigeria,” Vinmar International said.
The Nigerian Upstream Petroleum Regulatory Commission has directed exploration and production companies to strictly adhere to the Crude Oil Supply Obligations for local refineries.
The commission also warned that it would deny export permits for crude oil cargoes intended for domestic refining if oil companies fail to meet their local crude supply commitments.
In a circular issued by its Public Affairs Unit on Monday, the regulatory body stressed that any changes to cargoes designated for domestic refining must receive express approval from the Commission’s Chief Executive.
This directive follows complaints from local refiners, including the Dangote Refinery, over difficulties in securing adequate crude supplies, raising concerns about Nigeria’s energy self-sufficiency.
According to NUPRC data, the Dangote Refinery is expected to process 550,000 barrels per day and 17.05 million barrels per month in the first half of the year.
However, sources at the refinery claim the government has not met this demand, with suppliers requesting partial payment in US dollars.
In a letter dated February 2, 2025, addressed to exploration and production companies and their equity partners, the Commission Chief Executive, Gbenga Komolafe, reiterated that diverting crude oil meant for local refineries violates the law.
Citing Section 109 of the Petroleum Industry Act 2021, which ensures a stable supply of crude oil to domestic refineries and strengthens national energy security, Komolafe stated that NUPRC will now strictly enforce the policy and penalise defaulters.
He noted that the commission has already taken significant regulatory actions to enforce compliance with the Domestic Crude Supply Obligation. These include developing and signing the Production Curtailment and Domestic Crude Oil Supply Obligation Regulation 2023, as well as creating the DCSO framework and procedure guide for implementation.
“Kindly note that the diversion of crude cargo designated for domestic refineries is a violation of the law, and the Commission will henceforth disallow export permits for such cargoes.
“All cargoes designated for domestic refining can only be altered with the express approval of the Commission Chief Executive. The above is for your strict compliance,” the letter read.
Our correspondent gathered that, as part of efforts to resolve the issue, a stakeholder meeting attended by more than 50 key industry players was held last weekend.
At the meeting, both refiners and producers blamed each other for inconsistencies in implementing the Domestic Crude Supply Obligation policy.
Refiners claimed that producers were failing to meet supply terms and instead preferred to sell crude abroad, forcing them to seek alternative sources of feedstock. Conversely, producers argued that refiners rarely met commercial and operational terms, compelling them to explore other markets to avoid operational bottlenecks.
However, both sides acknowledged that the regulator has implemented appropriate measures to ensure compliance.
The commission cautioned against further breaches from either party.
It advised refiners to adhere to international best practices in procurement and operational matters and reminded producers that any variation of the DCSO policy conditions requires express approval from the CCE before selling crude outside the agreed framework. This, it said, is to prevent abuse.
The CCE warned that it would no longer tolerate violations of domestic crude supply regulations, stressing that non-compliance threatens Nigeria’s energy security.
In a strategic move aimed at bolstering Nigeria’s energy landscape, the Nigerian National Petroleum Company Limited (NNPC) has announced several high-profile appointments, enhancing both upstream and downstream operations. In a statement released on Wednesday night by Chief Corporate Communications Officer, Olufemi Soneye, the Board of Directors highlighted these changes as crucial steps toward reinforcing operational excellence, financial sustainability, and global competitiveness within the organization.
Key Appointments in NNPC Leadership
These appointments mark a new era for NNPC, aligning with its mission to establish a unified and skilled leadership team. Among the key announcements are the following:
Mr. Adedapo A. Segun assumes the role of Chief Financial Officer (CFO) following a distinguished tenure as the Executive Vice President, Downstream. Segun’s financial acumen and strategic insight are expected to drive NNPC’s financial operations towards heightened efficiency and robust fiscal management.
Mr. Isiyaku Abdullahi has been promoted to Executive Vice President (EVP), Downstream. Abdullahi brings a wealth of experience and a proven track record within NNPC, set to enhance downstream operations and strengthen partnerships in refining, distribution, and commercial activities.
Mr. Udobong Ntia steps into the role of Executive Vice President (EVP), Upstream, where his expertise will be pivotal in overseeing upstream exploration and production activities. Ntia’s focus will be on driving exploration efficiency and maximizing Nigeria’s petroleum reserves to align with the country’s energy security objectives.
Soneye emphasized, “These appointments align with NNPC Limited’s commitment to building a unified and competent leadership team to drive operational excellence and support the organization’s strategic objectives.”
Recognizing the Service of Outgoing Executives
In addition to these appointments, the Board expressed its gratitude to Mr. Umar Ajiya and Mrs. Oritsemeyiwa A. Eyesan for their significant contributions and dedication to NNPC’s mission. Their leadership and commitment to the growth of Nigeria’s energy sector have left a lasting impact, furthering NNPC’s legacy as a national petroleum giant.
A Renewed Vision for Operational Excellence and Global Competitiveness
NNPC remains steadfast in its pursuit of operational excellence, a goal which these appointments are set to strengthen. Under its new leadership, NNPC aims to enhance financial sustainability and ensure that it remains globally competitive, meeting the evolving demands of the oil and gas industry. In addition, NNPC continues to prioritize the interests of the Nigerian public, placing transparency and accountability at the forefront of its operations.
As Nigeria continues to adapt to an evolving energy market, these leadership changes underscore NNPC’s dedication to driving long-term value in the petroleum sector, not only for the organization but for the nation as a whole.
In a move to address the economic strain faced by Nigerians, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns about the pricing of petrol produced by Dangote Refinery. According to PETROAN’s spokesperson, Joseph Obele, the refinery’s current petrol pricing model is problematic, given the reduction in production costs to below N600 per liter. This decrease is largely due to the Federal Government’s “crude-for-naira” concession granted to Dangote Refinery, which has effectively minimized the input costs of crude oil for the facility.
A Call for Localized Pricing: Why International Market Rates Aren’t the Answer
The Dangote Refinery has positioned its petrol prices at international market levels, asserting that global rates should dictate domestic pricing. Obele and other industry stakeholders argue that this approach is both economically and ethically flawed. “The dynamics and the effects of the international market and Nigeria are not the same,” he emphasized during a recent broadcast on Nigeria Info FM 99.3. He believes that Dangote should price petrol based on local production costs plus a reasonable profit margin, rather than indexing it to global rates.
Nigeria, as an emerging market with significant socio-economic challenges, is vastly different from other nations where pricing policies are often guided by international norms. With high inflation and low minimum wages, setting petrol prices at international rates imposes unnecessary hardship on Nigerian citizens and businesses. The decision to adopt this pricing template fails to acknowledge the economic realities of Nigeria, where affordable energy is not just a commodity but an essential factor in daily life and economic growth.
Substantial Government Concessions Demand Consumer-Friendly Pricing
The Nigerian government has extended several generous concessions to Dangote Refinery over the course of its establishment. Not only has it received crude at significantly reduced rates, but it also benefited from foreign exchange concessions that were far more favorable than the official rate. These extraordinary supports were intended to foster a refinery that would drive affordable energy for Nigerians, ultimately providing relief from the high import-based fuel prices.
Joseph Obele criticized Dangote Refinery’s decision to overlook these benefits in its pricing model. “In a country where inflation is high and the minimum wage is poor,” he argued, “it is wrong for Dangote to base our petrol buying rate on the international market.” The concessions granted by the government signal a responsibility to prioritize Nigerian consumers in price-setting, aligning with national economic policies that aim to keep living costs manageable.
Economic Relief for Nigerians: An Immediate Need
The high cost of petrol affects every sector in Nigeria, as transportation, manufacturing, and goods prices are all tied to fuel costs. Reducing petrol prices to reflect lower production costs would create a ripple effect, potentially easing inflationary pressures and enhancing purchasing power for Nigerian households and businesses. In turn, this could foster a more stable economic environment, supporting growth and development across various sectors.
PETROAN’s stance reflects a growing call among industry players and consumers alike: that Dangote Refinery, having benefited significantly from local resources and concessions, must adjust its petrol pricing to meet local economic needs. The path forward, according to Obele, is clear. “Dangote should not have fixed his price on the international market,” he emphasized. “He should have fixed his price on cost of production plus the margin.”
Conclusion: An Opportunity to Set a New Standard
By aligning petrol prices with local production costs, Dangote Refinery has the opportunity to set a precedent in the oil and gas industry for pricing that respects both economic principles and social responsibility. Such a decision would underscore the refinery’s commitment to contributing to Nigeria’s economic resilience and could serve as a powerful example for other stakeholders in the sector.
As PETROAN and other industry players continue to advocate for this change, all eyes are now on Dangote Refinery to see if it will respond to these calls for a price adjustment that reflects the true cost of production and acknowledges the concessions it has received. A shift in this direction could mark a significant step toward a more stable, sustainable, and consumer-friendly fuel market in Nigeria.
By Olaitan Olutimehin Date: Tuesday, November 12, 2024
In a significant development for Nigeria’s petroleum industry, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has reached an agreement with Dangote Refinery for the direct supply of fuel, bypassing the Nigerian National Petroleum Company Limited (NNPCL) as an intermediary. This move, announced by IPMAN National President, Abubakar Garima, on Monday, November 11, 2024, is expected to streamline fuel distribution across Nigeria and ensure a more efficient and cost-effective delivery to IPMAN’s depots and retail outlets.
“We’re pleased to announce that Dangote Refinery has agreed to supply IPMAN with PMS (Premium Motor Spirit), AGO (Automotive Gas Oil), and DPK (Dual-Purpose Kerosene) directly for distribution to our depots and retail outlets,” Garima stated, as reported by Oil & Gas Trends Magazine. The landmark deal marks a new chapter in the relationship between IPMAN and the Dangote Group, aiming to reduce bottlenecks and improve the availability of fuel across Nigeria.
Background and Industry Tensions
This agreement follows recent tensions within the industry, where IPMAN and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PETROAN) raised concerns over pricing. Both organizations accused Dangote Refinery of setting higher prices for locally refined fuel compared to the costs of imported alternatives. Such discrepancies had sparked frustration among independent marketers who have long advocated for direct access to domestically refined products to stabilize pricing and ensure fair competition.
In response to the allegations, Dangote Refinery issued a statement on Sunday, with Group Chief Branding and Communications Officer, Anthony Chiejina, addressing what he described as “misinformation” in the media. “We had lately refrained from engaging in media fights, but we are constrained to respond to the recent misinformation being circulated,” Chiejina said, emphasizing the company’s commitment to transparency and a fair pricing strategy.
Implications of the Agreement for the Petroleum Sector
Industry analysts see the agreement as a pivotal step that could significantly impact Nigeria’s oil and gas sector. Direct loading from Dangote Refinery to IPMAN eliminates the NNPCL’s involvement in distribution, potentially reducing administrative delays and logistics costs. For consumers, this could translate to more stable fuel prices at the pump and increased accessibility in both urban and rural areas.
IPMAN’s Garima expressed optimism that the direct supply arrangement would yield positive results for Nigeria’s downstream petroleum sector. “Our partnership with Dangote Refinery represents a significant shift toward a more accessible and economically viable distribution network,” Garima added, emphasizing the anticipated benefits for the end consumer.
Future Outlook
This agreement could set a precedent for future collaborations between local refiners and independent marketers, fostering a more competitive environment within Nigeria’s oil and gas industry. As Dangote Refinery scales its operations and expands capacity, direct partnerships with associations like IPMAN could bolster Nigeria’s path toward energy self-sufficiency and reduce dependence on imported fuels.
Observers await further developments as IPMAN begins direct loading operations from Dangote Refinery in the coming weeks. If successful, this collaboration may serve as a model for the industry, illustrating how streamlined partnerships between refiners and marketers can stabilize Nigeria’s fuel market and ensure a steady supply across the nation.
Abuja, Nigeria – November 12, 2024 In a major shift for Nigeria’s energy sector, the Nigerian National Petroleum Company Limited (NNPCL) has announced that it has ceased all fuel importation, transitioning to sourcing from local refineries, including the newly operational Dangote Refinery. This development marks a significant milestone in Nigeria’s drive for energy self-sufficiency, reducing dependence on imported refined petroleum products.
At a press briefing on Tuesday, NNPCL’s Group Managing Director (GMD), Mr. Mele Kyari, expressed the company’s commitment to supporting domestic refineries and emphasized the strategic importance of the new partnership with the Dangote Refinery. “Today, NNPC does not import any product; we are taking only from domestic refineries,” Kyari stated, noting the value of strengthening local refining capacity.
The Group Chief Executive Officer, Mele Kyari elaborated on NNPCL’s investment in the Dangote Refinery, affirming the mutual benefits of this collaboration. “We are very proud part-owners of Dangote refinery, no doubt about it. We saw an opportunity that there is a clear market for at least 300,000 barrels of our production,” Kyari explained. “We know that as time moves on, people will start struggling to find markets for their production. It will happen; it’s already happening.”
The GMD highlighted that this shift from international suppliers to local sources was a deliberate business decision, made with an eye on long-term supply security and economic stability. “Oil is found, as you know, in many unexpected locations across the world, and people have choices. Therefore, we saw an opportunity to log supply to the domestic refinery—not just Dangote but any other refinery that operates in the country,” he added.
The Dangote Refinery, with a production capacity of 650,000 barrels per day, is expected to play a pivotal role in stabilizing Nigeria’s fuel market and reducing the reliance on imported fuel, which has historically put pressure on the country’s foreign reserves. The refinery’s output aligns with NNPCL’s strategy to prioritize local consumption and secure a steady, more sustainable fuel supply chain.
A New Era of Energy Security The NNPCL’s decision marks a turning point for the Nigerian energy sector. By reducing fuel imports, the company aims to enhance fuel availability nationwide, stabilize prices, and cut down on the high costs and logistical challenges associated with fuel importation. The move aligns with Nigeria’s broader economic policies aimed at boosting local industries and reducing outflows of foreign exchange.
The Road Ahead This development, seen as a forward-thinking strategy for Nigeria’s petroleum sector, sets the stage for further investment in domestic refining capabilities. With the Dangote Refinery and other local refineries now playing a central role, the Nigerian fuel market is poised for a new phase characterized by greater energy independence and economic resilience.
Vitol Group, Trafigura Group and BP Plc are the dominant buyers of fuels from Nigeria’s giant new Dangote oil refinery near Lagos that’s reshaping petroleum trading in Africa and Europe.
The trio have accounted for the vast majority of the plant’s shipments since flows began ratcheting up around the middle of this year, according to data from Precise Intelligence, a new oil-and-gas trading analytics firm based in Geneva.
Once it’s fully up and running, Dangote should be able to process about 650,000 barrels a day of crude into products including gasoline and diesel. That will far exceed the fuelmaking capacity of any single plant in Europe or Africa, helping to reshape the regions’ oil and fuel trading. The emergence of Dangote has already trimmed a glut of Nigerian crude.
Since starting up, the refinery has loaded almost 6 million tons of fuel, Precise’s data show. That’s equivalent to almost 45 million barrels. Loading rates averaged about 35,000 tons a day in October, its data show.
Dangote itself said late last month that the refinery had reached processing rates of about 420,000 barrels a day of crude. The plant is also selling into the Nigerian market.
Vitol and Trafigura declined to comment. Dangote and BP didn’t respond to requests to comment.
The composition of fuel cargoes loading from Dangote is closely watched because it offers clues into where the refinery is at in terms of starting up different processing units.
Precise’s figures show that automotive gasoil — diesel — is the biggest cargo type being lifted, followed by fuel oil. Together, they account for more than 60 percent of what’s being collected from the plant. Other fuels include gasoline and jet fuel.
Oil marketers, represented by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), have raised serious concerns over alleged attempts by Aliko Dangote, President of the Dangote Group, to monopolize Nigeria’s oil sector. PETROAN claims that Dangote is using his influence to hinder market competition, a move they argue is detrimental to fair pricing and consumer choice in the downstream petroleum market.
In a statement signed by PETROAN’s national public relations officer, Dr. Joseph Obele, the association called on the Nigerian Federal Government to take decisive action against monopolistic practices in the downstream oil sector. PETROAN’s call for reform aims to foster a more inclusive and competitive oil market, ensuring that consumers receive the best possible prices for petroleum products.
The tension escalated after Dangote Refinery allegedly published statements suggesting that PETROAN would import substandard petroleum products. PETROAN, however, dismissed these claims as an attempt by Dangote to undermine their plans to sell petroleum motor spirit (PMS) at prices significantly lower than current market rates.
Dr. Obele explained that PETROAN’s mission is to promote a liberalized downstream sector, highlighting that competition naturally results in fairer prices and improved quality for consumers. According to him, PETROAN, alongside the Independent Petroleum Marketers Association of Nigeria (IPMAN), has already initiated partnerships with international refineries and financial institutions to import premium PMS at competitive prices.
“PETROAN has concluded plans with its foreign refinery partners and financial allies to bring in high-quality PMS,” Dr. Obele said. He added that the organization aims to enter the market by December 2024, pending regulatory approvals and access to foreign exchange through the Central Bank of Nigeria (CBN).
PETROAN’s statement also highlighted concerns regarding Dangote Refinery’s newly publicized PMS rate of N990, a price PETROAN described as “inconsiderate” given the preferential foreign exchange access Dangote Refinery reportedly received during its construction. Dr. Obele argued that Dangote’s pricing model, which he claims is based on global market rates, fails to consider local production costs and should not be the primary determinant of PMS prices in Nigeria.
“A balanced market should allow multiple players to thrive, with leaders, challengers, and followers all contributing to affordable pricing,” PETROAN’s statement argued. They further called on the government to foster a competitive environment as a means of driving down prices and preventing a single entity from controlling the sector.
PETROAN emphasized that the best way to reduce PMS prices is through increased competition in the sector. The organization voiced its support for government efforts to open up the market to more players, arguing that a competitive environment would benefit consumers and stabilize the petroleum market.
In closing, PETROAN reiterated its commitment to promoting a balanced oil market where all players can contribute fairly. They called on the Federal Government to take swift action against monopolistic moves in the downstream oil sector, arguing that only with active competition will consumers see the true benefits in pricing and service quality.
