The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Bayo Ojulari, on Sunday assured Nigerians that ongoing price competition in the downstream petroleum sector will ultimately benefit consumers.
He described current market tensions as a natural consequence of Nigeria’s transition from total import dependence to domestic refining.
“Where there is healthy competition, the buyers are the ultimate beneficiaries. And I think for us, we need to keep our minds that the market will stabilise.
“After a while, there’ll be some tension, because we’re going through a major transition,” Ojulari told journalists after briefing President Bola Tinubu in Lagos.
At the end of the day, I can tell you that Nigerians on the street are going to be the beneficiaries,” Ojulari declared.
Clarifying NNPCL’s role in the deregulated market, Ojulari emphasised that the company is no longer responsible for petroleum product pricing or regulation under the Petroleum Industry Act.
“The first thing you have to know is that the PIA did something fundamental. Before the PIA in 2021, which rolled in 2022, everything was under NNPC, including some regulations. The PIA divided the roles of regulation from what I will call the business,” he explained.
Ojulari added, “The NMDPRA is responsible for all downstream regulation and midstream, as you know, and the NUPRC is responsible for all upstream regulations.
“So it’s very important that Nigerians understand that post-PIA, we as NNPC are not regulators.”
He stressed that NNPC has been instituted by the PIA to become “a commercial company, which means a company that needs to compete profitably and be successful profitably.”
Ojulari disclosed that NNPCL no longer receives federation allocations and must raise finance independently “like any other business.”
Nigeria’s downstream petroleum sector has been gripped by fierce competition since September 2024, when Dangote Refinery, Africa’s largest single-train refinery with 650,000 barrels per day capacity, began producing petrol locally.
According to the National Bureau of Statistics, the average retail price of Premium Motor Spirit fell by N153 per litre between November 2024 and November 2025—from N1,214.17 to N1,061.35, driven by supply improvements and stronger competition.
The price war intensified dramatically in December 2025 when Dangote slashed its ex-depot price from N970 to N699 per litre, forcing other players to follow suit or risk losing market share.
MRS filling stations, Dangote’s retail partner, began selling at N739 per litre nationwide, while NNPC retail outlets dropped prices from N875 to between N825 and N840 per litre depending on location. Independent marketers followed, with some selling as low as N865 per litre.
Data from Petroleumprice.ng showed that Dangote Refinery made over 20 price adjustments in 2025 alone.
The rapid price reductions created significant challenges for petroleum marketers who purchased products at higher prices and now must sell at a loss or lose customers entirely.
Marketers Association of Nigeria confirmed that “price competition now determines customer loyalty,” with its spokesperson, Chinedu Ukadike, noting that “any marketer unwilling to adjust prices risks losing patronage and facing mounting bank interest costs.”
Ojulari described NNPCL as “the supplier of last resort,” working closely with all key downstream players, including Dangote Refinery, in which we have an interest,” to ensure product availability.
“For us as NNPC, our focus is to generate more production. As we generate more production, we believe there’ll be more production to feed the refineries as much as possible.
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