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. He described the current market dynamics as a natural outcome of Nigeria’s shift from total import dependence to domestic refining.
Ojulari highlighted that where there is healthy competition, buyers are the ultimate beneficiaries. He noted that while the transition is causing market tension, the expectation is that prices will stabilize over time. This comes amid a price war that has seen petrol retail prices drop from over ₦1,200 per litre in November 2024 to as low as ₦739 per litre in December 2025, driven largely by competition between Dangote Refinery, NNPCL, and independent marketers.
Clarifying NNPCL’s role under the Petroleum Industry Act (PIA), Ojulari emphasized that the company no longer regulates petroleum pricing. Regulatory responsibilities now rest with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for downstream and midstream operations, and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for upstream operations. NNPCL has been repositioned as a commercial entity required to operate profitably without federation allocations.
Ojulari explained that NNPCL works closely with all key downstream players, including Dangote Refinery, to ensure product availability. He noted that the simultaneous operation of Dangote and NNPCL’s rehabilitated refineries has disrupted market equilibrium but is part of Nigeria’s transition to a competitive, domestic-refining-driven petroleum market.
He disclosed that NNPCL’s oil production rose from 1.5 million barrels per day in 2024 to over 1.7 million barrels per day in 2025, with gas production increasing from 6.5 billion standard cubic feet to over 7 billion standard cubic feet daily. The company aims to reach 1.8 million barrels per day in 2026, moving toward President Tinubu’s target of 2 million barrels per day by 2027.
Ojulari also reported that the Ajaokuta-Kaduna-Kano (AKK) gas pipeline’s main line welding has been completed, including the challenging crossing of the River Niger. Once commissioned in early 2026, the 614-kilometre AKK pipeline will supply gas for industrialisation, fertiliser production, and power generation across northern Nigeria.
