Amid sharp reductions in petrol prices across the country, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Bayo Ojulari, has assured Nigerians that the ongoing competition in the downstream petroleum sector will ultimately favour consumers.
Ojulari said the current pricing tension in the market is a natural outcome of Nigeria’s transition from heavy reliance on imported fuel to domestic refining, stressing that such changes often come with temporary disruptions.
Speaking to journalists on Sunday after briefing President Bola Tinubu in Lagos, the NNPCL boss said healthy competition would always work in the interest of buyers.
“Where there is healthy competition, the buyers are the ultimate beneficiaries. We just need to understand that the market will stabilise,” he said, adding that some level of tension was inevitable during a major industry transition.
His remarks come against the backdrop of an intense price war in the petroleum sector, which has seen the pump price of petrol fall from over N1,200 per litre in November 2024 to as low as N739 per litre at some filling stations in December 2025. The development has been driven largely by competition among Dangote Refinery, NNPCL and independent marketers.
Ojulari maintained that Nigerians would gain the most from the situation. “At the end of the day, Nigerians on the street are going to be the beneficiaries,” he said.
Clarifying NNPCL’s role in the liberalised market, the GCEO explained that the Petroleum Industry Act had fundamentally restructured the sector by separating regulation from commercial operations.
“Before the PIA, everything was under NNPC, including some regulatory responsibilities. The Act clearly separated regulation from business,” he explained.
He noted that the Nigerian Midstream and Downstream Petroleum Regulatory Authority now handles downstream and midstream regulation, while the Nigerian Upstream Petroleum Regulatory Commission oversees upstream activities.
“It is important for Nigerians to understand that post-PIA, NNPC is not a regulator. We are now a commercial company that must compete and operate profitably,” Ojulari said.
According to him, NNPCL no longer receives allocations from the federation account and must now raise funding independently like any other business entity.
Describing NNPCL as the “supplier of last resort,” Ojulari said the company works closely with all downstream players, including Dangote Refinery, in which it has equity interest, to ensure consistent fuel supply.
He explained that increased crude oil production would enhance refinery feedstock availability and improve flexibility for downstream operators.
“We believe that as production increases, more crude will be available to feed refineries and allow downstream players to participate more effectively,” he said.
Ojulari acknowledged that the simultaneous operation of large-scale refineries, particularly the Dangote Refinery and NNPCL’s rehabilitated facilities, has disrupted market equilibrium.
“When you suddenly have a huge refinery like Dangote operating locally, alongside NNPC refineries coming back on stream, the market is bound to be impacted,” he said, adding that stakeholders must collectively navigate the new reality.
He described the emergence of a major local refinery as a positive development not only for Nigeria but also for the wider West African sub-region.
The NNPCL boss said market competitiveness would be managed by the relevant regulator, noting that competition in a deregulated environment can be challenging in its early stages.
Reflecting on the sector’s past, Ojulari said Nigeria’s petroleum industry had long been characterised by near-total import dependence, with NNPC dominating imports and distribution under a subsidy regime.
He recalled that fuel subsidy removal in May 2023 led to a sharp rise in pump prices, worsening economic pressures amid high inflation. According to him, meaningful relief only began after Dangote Refinery ramped up production towards the end of 2024.
Ojulari also disclosed that he briefed President Tinubu on NNPCL’s production milestones in 2025, revealing that crude oil output had increased from 1.5 million barrels per day to over 1.7 million barrels per day.
He added that gas production had also risen from 6.5 billion to more than 7 billion standard cubic feet per day, attributing the growth to structural reforms within the company.
Looking ahead, Ojulari said NNPCL aims to reach 1.8 million barrels per day in 2026 as part of efforts to meet the federal government’s target of two million barrels per day by 2027 and attract over $30 billion in investment by 2030.
He further announced the successful completion of the welding of the main line of the Ajaokuta–Kaduna–Kano gas pipeline, including the long-delayed River Niger crossing.
“With the main line completed, we can now proceed to make all necessary connections early next year,” he said.
The 614-kilometre AKK pipeline is expected to supply gas to northern Nigeria for industrial use, fertiliser production and power generation when commissioned in early 2026.
Ojulari concluded that although the current price competition has posed challenges for marketers, market forces would eventually stabilise, delivering long-term benefits to Nigerians.
