The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, has assured Nigerians that ongoing price competition in the downstream petroleum sector will ultimately benefit consumers.
Speaking to journalists on Sunday after briefing President Bola Tinubu in Lagos, Ojulari described the current market tensions as a natural outcome of Nigeria’s transition from full import dependence to domestic refining.
“Where there is healthy competition, the buyers are the ultimate beneficiaries. After a while, there’ll be some tension, because we’re going through a major transition,” he said.
The comments come amid a dramatic price war in the downstream market that has seen petrol prices fall from over N1,200 per litre in November 2024 to as low as N739 per litre at some retail outlets in December 2025. The reduction was largely driven by competition between Dangote Refinery, NNPCL, and independent marketers.
“At the end of the day, I can tell you that Nigerians on the street are going to be the beneficiaries,” Ojulari added.
Clarifying NNPCL’s role under the Petroleum Industry Act (PIA), Ojulari emphasised that the company no longer regulates petroleum pricing. “The PIA divided the roles of regulation from what I will call the business. The NMDPRA handles all downstream regulation, while NUPRC manages upstream,” he explained. He added that NNPCL has become a commercial company that must operate profitably and independently, without receiving federation allocations.
The GCEO noted that the entry of Dangote Refinery, Africa’s largest single-train refinery with a capacity of 650,000 barrels per day, has intensified competition and disrupted market equilibrium. In December 2025, Dangote slashed its ex-depot price from N970 to N699 per litre, prompting other players, including NNPCL and independent marketers, to follow suit.
Ojulari described NNPCL as “the supplier of last resort,” working closely with key downstream players to ensure product availability. He highlighted that rising production levels at NNPC refineries and Dangote’s facilities have created flexibility for other players to participate effectively in the market.
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Since Dangote’s entry, the average retail price of Premium Motor Spirit has fallen by N153 per litre between November 2024 and November 2025, according to the National Bureau of Statistics. However, marketers face challenges selling at reduced prices, with the Marketers Association of Nigeria warning that “price competition now determines customer loyalty.”
Ojulari also briefed President Tinubu on NNPCL’s production achievements, noting that oil output has risen from 1.5 million barrels per day in 2024 to over 1.7 million barrels per day in 2025, while gas production increased from 6.5 billion to over 7 billion standard cubic feet daily. NNPCL aims to reach 1.8 million barrels per day in 2026, moving toward the President’s 2 million barrels per day target by 2027 and attracting more than $30 billion in investment by 2030.
Additionally, Ojulari disclosed the successful completion of the main line of the 614-kilometre Ajaokuta-Kaduna-Kano (AKK) gas pipeline, including the crossing of the River Niger. The pipeline is expected to supply gas to northern Nigeria for industrialisation, fertiliser production, and power generation when commissioned in early 2026.
“We believe that we are in a good state to commence implementation,” he said, noting that NNPCL will continue to focus on increasing production and stabilising the downstream market while allowing regulators to manage competitiveness.