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By Adewale Sanyaolu and Adanna Nnamani, Abuja
The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Bayo Ojulari, on Sunday assured Nigerians that the ongoing price competition in the downstream petroleum sector will ultimately favour consumers.
He described the current market tensions as a natural outcome of Nigeria’s transition from complete import dependence to local 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 following a briefing with President Bola Tinubu in Lagos.
His comments come amid an intense price war that has seen petrol prices tumble from over N1,200 per litre in November 2024 to as low as N739 per litre at some retail outlets in December 2025. The dramatic drop has been driven by competition among 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 said.
Clarifying NNPCL’s role in the deregulated market, Ojulari emphasised that the company no longer sets petroleum product prices or regulates the industry under the Petroleum Industry Act (PIA). “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.
He further noted, “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.”
Ojulari stressed that NNPCL has now become “a commercial company, which means a company that needs to compete profitably and be successful profitably.” He also disclosed that the company no longer receives federation allocations and must raise financing independently “like any other business.”
Nigeria’s downstream petroleum sector has experienced fierce competition since September 2024, when Dangote Refinery, Africa’s largest single-train refinery with 650,000 barrels per day capacity, began local production of petrol. 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, dropping from N1,214.17 to N1,061.35, driven by increased supply and stronger competition.
The price war intensified in December 2025 when Dangote slashed its ex-depot price from N970 to N699 per litre, forcing competitors to follow suit. MRS filling stations, Dangote’s retail partner, began selling at N739 per litre nationwide, while NNPC retail outlets dropped prices to between N825 and N840 per litre depending on location. Independent marketers also adjusted, selling as low as N865 per litre. Data from Petroleumprice.ng showed that Dangote Refinery made over 20 price adjustments in 2025 alone, highlighting the dynamic and fiercely competitive nature of Nigeria’s downstream market.
