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.
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.
Lokpobiri’s vision promises to bring significant changes to the sector, ensuring that license renewals are tied to tangible development. This shift is expected to boost Nigeria’s oil industry, promoting growth and investment.
The Cross Industry Group (CIG) meeting provided the perfect platform for Lokpobiri’s announcement, as it gathered key stakeholders from the oil producers trade section. With five major oil companies operating in Nigeria present, this new direction is poised to have a lasting impact on the country’s oil landscape.
Nigeria’s Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, is calling on industry players to step up their game and support the country’s ambitious goal of boosting oil production by over one million barrels within the next two years. In a recent press statement, Lokpobiri stressed that the time for complacency is over, saying “We cannot afford to hold valuable fields in perpetuity. It’s either you put them to work or relinquish them. The era of renewing licenses without development is over”.
Nigeria’s Minister of State for Petroleum Resources is shaking things up to attract more investors to the oil and gas industry. He’s implemented two key strategies: lowering barriers to entry and enforcing the “drill or drop” policy.
Nigeria is making a bold move to boost its oil and gas sector! Minister Lokpobiri recently announced the government’s initiative to launch bid rounds for 31 strategically selected oil and gas blocks, a crucial step in Nigeria’s development strategy. This move is expected to increase reserves and stimulate economic growth, earning the Minister praise from the Oil Producers Trade Section (OPTS) for his proactive approach ¹.
Lokpobiri emphasized that Nigeria’s petroleum resources hold immense value and potential, but realizing this potential requires tackling challenges and leveraging strengths to ensure shared prosperity and energy security. His address served as a rallying call to industry stakeholders, urging collaboration to secure Nigeria’s energy future
The Nigerian National Petroleum Corporation (NNPC) has made a significant announcement regarding the increase in the price of Premium Motor Spirit (PMS), commonly known as petrol. Effective immediately, the price of PMS will rise to ₦998 per litre, marking one of the highest price hikes in Nigeria’s history. This latest development has sparked widespread concern, as the cost of fuel continues to surge following the removal of the oil subsidy by President Bola Ahmed Tinubu earlier this year.
A New Era of Fuel Pricing in Nigeria
The decision to increase PMS prices comes in the wake of ongoing economic challenges and global market dynamics. According to the NNPC, the rise in global crude oil prices, the devaluation of the naira, and the removal of fuel subsidies are the primary factors behind this drastic price surge. The change in price has sent shockwaves across various sectors of the economy, with Nigerians already expressing concerns about the impact this will have on the cost of living, transportation, and goods and services.
According to an insider of the NNPCL who chose not to be mentioned or quoted, said the reason behind the price increase may be linked to the rising crude oil prices in the international market, as revealed to our correspondent..
And also mentioned that the price adjustment is necessary to ensure adequate supply and to maintain profitability in the oil sector. However, the timing and scale of the increase have caught many Nigerians off guard, as the country continues to grapple with rising inflation and economic uncertainty.
The End of Oil Subsidies: A Turning Point
The current fuel price increase is part of a broader narrative that began with the removal of the oil subsidy in May 2023, just days after President Tinubu assumed office. The removal of the subsidy was one of Tinubu’s most controversial economic reforms, aimed at addressing Nigeria’s mounting fiscal challenges.
For decades, Nigeria had maintained an oil subsidy program that kept the price of petrol artificially low, allowing Nigerians to enjoy some of the lowest fuel prices globally. However, this subsidy came at a heavy cost to the government, which was spending billions of naira annually to keep fuel prices low. By removing the subsidy, Tinubu sought to redirect these funds toward infrastructure, healthcare, and education, while also reducing the fiscal deficit.
During his inauguration speech, Tinubu declared, “Subsidy is gone,” marking the beginning of a new chapter in Nigeria’s economic history. The removal of the subsidy was met with mixed reactions, with many acknowledging that while the subsidy was unsustainable, its removal would lead to higher fuel prices and increased hardship for ordinary Nigerians.
A History of Fuel Price Increases Since the Removal of Subsidy
Since the removal of the subsidy, Nigeria has witnessed a series of fuel price hikes, each with its own economic and social implications. The timeline of fuel price increases since Tinubu’s administration took this bold step paints a picture of the challenges faced by the government and the Nigerian people in navigating the post-subsidy landscape.
1. May 2023: Subsidy Removal and Initial Price Hike
On May 29, 2023, President Tinubu’s announcement of the removal of the oil subsidy immediately led to an increase in fuel prices. Within days, the price of PMS rose from ₦189 per litre to an average of ₦500 per litre. This initial hike was met with shock and protests across the country as Nigerians struggled to adjust to the new reality.
Despite government assurances that the removal of the subsidy would lead to long-term economic benefits, many Nigerians felt the pinch almost immediately, with transportation costs doubling and the prices of goods and services skyrocketing. Tinubu’s government promised palliative measures to ease the burden on the population, but the effectiveness of these measures has remained a point of contention.
2. June 2023: Further Adjustment to ₦617 Per Litre
Barely a month after the subsidy removal, the price of PMS rose again, this time to ₦617 per litre. The NNPC cited the fluctuating international crude oil prices and the depreciation of the naira as the reasons for the increase. At this point, the shock of the initial subsidy removal was still fresh, and many Nigerians were grappling with the rising cost of living.
The June 2023 price hike led to widespread criticism of the government’s decision to remove the subsidy without putting adequate measures in place to cushion the impact. Labor unions and civil society organizations organized protests and threatened strikes, demanding that the government reverse the decision or provide more substantial palliatives.
3. August 2023: A Gradual Climb to ₦720 Per Litre
In August 2023, the price of PMS rose yet again, this time to ₦720 per litre. The NNPC, in its defense, pointed to the global oil market and the ongoing depreciation of the naira against the dollar as contributing factors. The government reiterated its stance that the removal of the subsidy was necessary to stabilize Nigeria’s economy and reduce its reliance on debt.
The August increase was met with increasing public frustration, as transportation costs, food prices, and general living expenses continued to rise. Many Nigerians called for more government intervention, while labor unions renewed their calls for strikes and protests.
4. October 2023: Price Reaches ₦800 Per Litre
By October 2023, the price of PMS had climbed to ₦800 per litre, signaling the persistent pressure on Nigeria’s fuel pricing system. This price adjustment came amid rising global crude oil prices, which had surpassed $90 per barrel. The devaluation of the naira had also deepened, exacerbating the cost of importing refined fuel.
At this point, the impact on Nigerians’ daily lives was undeniable. The cost of transportation had soared, and many businesses, particularly in the informal sector, were struggling to survive. Despite the challenges, the government continued to defend its subsidy removal policy, arguing that it was necessary to attract investment into the downstream sector and encourage local refining.
5. December 2023: Price Reaches ₦880 Per Litre
As the year drew to a close, the price of PMS increased yet again, this time reaching ₦880 per litre in December 2023. The increase was driven by a combination of global oil market trends, currency depreciation, and the government’s decision to fully deregulate the oil sector. The NNPC stated that it was committed to maintaining fuel supply despite the challenges, but many Nigerians were beginning to lose hope that the situation would stabilize.
6. January 2024: New Year, New Price – ₦950 Per Litre
The beginning of 2024 brought little relief, as the price of PMS hit ₦950 per litre in January. This increase was one of the sharpest yet, and it further strained the finances of Nigerian households. The government announced plans for more social interventions, but skepticism remained high, especially as labor unions continued to demand that the government reverse the removal of the subsidy.
7. October 2024: The Latest Increase to ₦998 Per Litre
And now, in October 2024, the NNPC has announced the latest and most significant fuel price increase yet, pushing PMS to ₦998 per litre. This latest adjustment reflects ongoing global oil market trends, currency depreciation, and the full deregulation of Nigeria’s downstream oil sector.
The increase in fuel prices has led to widespread concern across Nigeria, as the effects of the rising costs are felt in nearly every aspect of daily life. Transportation costs, for example, have risen dramatically, making commuting difficult for many, particularly those who rely on public transport. Small businesses, which depend on petrol for generators due to unreliable electricity supply, have been hit hard, with many being forced to close or scale down operations.
The rise in fuel prices has also led to a surge in inflation, with food prices, household goods, and services becoming more expensive. This has exacerbated the challenges faced by Nigeria’s most vulnerable populations, who were already struggling with high unemployment rates, low wages, and economic insecurity.
The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN) has assured Nigerians that once the association starts lifting premium motor spirit (PMS) from the Dangote Refinery, the public will benefit from favorable prices, as crude oil is sold to the refinery in naira. Despite this, the Petroleum Retail Outlets Owners Association of Nigeria (PETROAN) remains committed to continuing fuel imports, citing concerns over refinery output and business sustainability.
Maigandi reassured that there is no cause for concern, addressing reports that the Nigerian National Petroleum Company (NNPC) Limited has ended its exclusive purchase agreement with the Dangote Refinery. This development opens the market for other marketers to directly source petrol from the refinery, which has a capacity of 650,000 barrels per day. Maigandi’s comments suggest a more competitive environment that could benefit consumers and petroleum marketers alike.
Although neither NNPCL nor Dangote Refinery has confirmed or denied the reports, the move suggests that NNPC will no longer serve as the sole buyer, allowing other marketers to directly negotiate prices with Dangote Refinery. Maigandi, speaking for IPMAN, welcomed this development, stating that if NNPCL can purchase directly, so should they. He noted that concerns over pricing should not be an issue, pointing out that they currently buy petrol from NNPC at over ₦800 per litre, but expressed optimism about how things will unfold.
Maigandi expressed confidence that selling crude oil to Dangote Refinery in naira would result in favorable pricing for Nigerians. He reassured that IPMAN is fully prepared to commence business and urged citizens not to worry about fuel prices. According to him, once they begin lifting petrol directly from the refinery under the naira sales regime, consumers will be pleased with the outcome, promising that this move will bring relief to the public.
He explained that independent marketers had not previously purchased Dangote petrol from NNPCL because they were waiting to see the pricing structure. He added that while they are open to any terms, their preference is to source directly from Dangote Refinery, which is the most suitable option for them. Meanwhile, Dr. Muda Yusuf of the CPPE emphasized the need for more transparency from NNPCL, pointing out that current pricing suggests a partial subsidy and urged clarity on whether the government plans to fully deregulate PMS prices.
He pointed out that, as a private company with loans to repay, Dangote Refinery must operate at market prices. This means that if all marketers begin purchasing directly from Dangote, it would signal the complete removal of any fuel subsidies. He also noted that the recent policy of selling crude oil in naira to the refinery might enable Dangote to sell at a similar price to what NNPCL previously offered, potentially compensating for the prior subsidy and benefiting all parties involved.
From a social standpoint, completely deregulating petrol prices at this time would be unwise given the current challenges Nigerians are facing, according to Yusuf. He urged the NNPC to address the situation publicly, as continued silence could lead to confusion and speculation. Yusuf recommended that the government maintain the current marginal subsidy on petrol to protect the most vulnerable members of society and prevent further economic strain.
The Nigerian National Petroleum Company Limited (NNPCL) finds itself grappling with a complex situation: on one hand, there is the unfinished business of reviving government-owned refineries, most notably the Port Harcourt Refinery, which has seen countless delays; on the other, NNPCL is becoming increasingly involved as an intermediary between the newly operational Dangote Refinery and independent marketers. This dual focus reveals an underlying tension within Nigeria’s oil sector—a tension that has broad implications for energy security, pricing stability, and economic resilience.
The Long-Awaited Revival of Government-Owned Refineries
One of the most pressing challenges NNPCL faces is the continuous postponement of getting the government-owned refineries—specifically, the Port Harcourt Refinery—back to operational status. These refineries, once the pride of Nigeria’s domestic fuel production, have for years failed to produce any significant output due to mismanagement, lack of maintenance, and underinvestment. The Port Harcourt Refinery’s rehabilitation, originally projected to be completed years ago, has become a symbol of unfulfilled promises. Despite repeated reassurances, each announced operational date has ended in another delay.
These continuous postponements have frustrated both industry players and the general public. The expectation was that the refurbishment of the government-owned refineries would reduce Nigeria’s dependence on imported refined products and help stabilize the supply of Premium Motor Spirit (PMS). Yet, every new missed deadline only emphasizes NNPCL’s struggle to bring this vision to life. The prolonged delays mean that Nigeria continues to depend heavily on imported petrol, draining valuable foreign exchange reserves and subjecting the domestic market to international price volatility.
NNPCL’s inability to meet its refinery deadlines has broader implications for Nigeria’s energy landscape. The delays perpetuate an expensive reliance on imports, making Nigeria vulnerable to fluctuations in global oil markets and depriving the country of the opportunity to establish true energy independence. This situation directly impacts fuel prices across the nation, often resulting in high costs at the pump that ripple through other sectors of the economy, driving up the cost of goods and transportation.
Stepping in as the Intermediary Between Dangote and Independent Marketers
While the government refineries remain stuck in limbo, NNPCL has increasingly stepped in to play a different role—acting as an intermediary between Dangote Refinery, Africa’s largest private refinery, and the nation’s independent petroleum marketers. This new role comes with its own set of opportunities and challenges, signaling a pivot in NNPCL’s strategy amidst the delayed progress on their own refineries.
With Dangote Refinery now operational and producing petrol, NNPCL initially positioned itself as the sole buyer of PMS from the refinery, ostensibly to ensure a stable and streamlined supply chain. However, recent reports suggest that NNPCL is reconsidering this exclusive role. Instead of acting as the single point of purchase and distributor, NNPCL may opt to share responsibility with independent marketers, creating a more open, albeit complex, market dynamic.
This move raises several questions. Is NNPCL stepping away from its primary mandate to prioritize the rehabilitation and operation of the nation’s own refineries? By focusing on acting as a middleman between Dangote Refinery and independent marketers, NNPCL may be indirectly admitting its inability to swiftly restore the government-owned refineries. This evolving role, while seemingly practical in light of current fuel demands, also indicates a strategic shift from being a production-centric entity to more of a logistics and supply-chain facilitator.
For independent marketers, having direct access to Dangote’s output could mean more competition and, ideally, better pricing. However, without NNPCL’s coordinating hand, the market could become prone to price wars and supply inconsistencies, ultimately harming the average consumer. This uncertainty puts additional pressure on NNPCL to manage relationships and market expectations carefully, even as it attempts to figure out its own production capacities.
Broader Implications for Nigeria’s Energy Sector
NNPCL’s current situation presents a paradox: it’s an organization with significant potential and ambition but is caught between two competing roles. On one hand, it aims to fulfill the national goal of restoring government refineries to operational status—a crucial step towards reducing reliance on fuel imports and gaining true energy independence. On the other hand, the company is leaning into its role as an intermediary, seemingly to cover gaps created by the ongoing failure to rehabilitate its refineries.
This dual focus dilutes NNPCL’s capacity to make meaningful progress on either front. The delays in refinery operations mean that Nigeria continues to lose out on potential value-added benefits from refining its crude oil domestically. Meanwhile, by inserting itself as a middleman between Dangote and independent marketers, NNPCL risks entrenching itself in a complex intermediary role instead of developing its own production facilities.
Moreover, these moves have critical implications for fuel pricing and availability across Nigeria. The reliance on a single private entity—Dangote Refinery—for refined products creates a potential monopoly scenario, where market dynamics are subject to the pricing strategies and production decisions of one company. If NNPCL is unable to fully rehabilitate its refineries, this concentration of power in a single private refinery could lead to unstable pricing and limited control for the government over critical energy supplies.
Conclusion: A Need for Focused Strategy and Decisive Action
NNPCL’s current dual role is emblematic of the broader challenges facing Nigeria’s oil and energy sectors. The continuous postponement of government-owned refineries, particularly the Port Harcourt facility, highlights a persistent inability to achieve energy independence despite immense national resources. At the same time, the evolving intermediary role between Dangote Refinery and independent marketers points to a stopgap solution rather than a long-term strategic approach.
To address these dual challenges effectively, NNPCL must prioritize and clarify its focus. The government refineries must either be brought online without further delays or realistic alternatives must be developed, including potential partnerships or divestitures that could make these refineries functional. On the other hand, if NNPCL decides to continue acting as a mediator in the petrol supply chain, it must ensure transparency, fair pricing, and a stable supply to benefit both marketers and consumers.
Ultimately, NNPCL’s ability to move beyond its current position of “two mouths”—speaking both about refinery rehabilitation and private partnerships—will determine its role in shaping Nigeria’s energy future. By adopting a focused, strategic, and action-oriented approach, NNPCL can finally fulfill its mandate of securing energy stability for Nigeria, thereby laying the foundation for long-term economic growth and national development.
Gbenga Komolafe, the current Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), is a seasoned professional with decades of experience in the oil and gas industry. Known for his strategic acumen and in-depth understanding of the regulatory landscape, Komolafe has dedicated his career to advancing Nigeria’s oil sector, particularly the upstream division. With a background in engineering and law, he possesses a unique blend of technical and regulatory expertise that has significantly shaped his approach to leadership in the industry.
Komolafe has been instrumental in driving reforms aimed at ensuring transparency, efficiency, and compliance in the oil and gas sector. His emphasis on collaboration and stakeholder engagement has fostered better relationships between the regulatory body and industry players, enhancing operational harmony and trust. He has also been a vocal advocate for environmental sustainability and local content development, aligning with Nigeria’s long-term energy goals and the push for sustainable exploration practices.
Under his leadership, the NUPRC has made significant strides in the implementation of the Petroleum Industry Act (PIA), focusing on the critical transformation of the Nigerian oil sector to maximize revenues, boost investor confidence, and ensure the fair distribution of resources. Komolafe’s commitment to operational excellence and regulatory enforcement has made him a respected figure not only within the industry but also among policymakers and international stakeholders.
Gbenga Komolafe’s approach to leadership is defined by his transparency, accountability, and commitment to national development. His vision for the future of Nigeria’s oil and gas industry centers on strengthening indigenous participation, enhancing revenue flow through efficient resource management, and ensuring that the sector remains competitive in the global market. His reputation as a diligent, strategic leader continues to inspire confidence and drive positive change within the NUPRC and beyond.
