The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, has assured the public that the aggressive price competition currently shaking the downstream petroleum sector is a positive milestone for the country.
Speaking to journalists on Sunday after briefing President Bola Tinubu in Lagos, Ojulari characterized the current market volatility as a “natural consequence” of Nigeria’s historic pivot from being an import-dependent nation to a domestic refining powerhouse.
“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,” Ojulari stated. “After a while, there’ll be some tension, because we’re going through a major transition.”
The NNPCL chief’s remarks come amid a dramatic shift in pump prices. Following the ramp-up of the 650,000 barrels-per-day Dangote Refinery and the rehabilitation of NNPCL facilities, petrol prices have plummeted from over N1,200 per litre in late 2024 to as low as N739 per litre at some outlets this December.
Ojulari expressed confidence that this downward trend would continue to favor the public. “At the end of the day, I can tell you that Nigerians on the street are going to be the beneficiaries,” he declared.
He took the opportunity to clarify NNPCL’s evolving role under the Petroleum Industry Act (PIA), emphasizing that the company has transitioned from a regulator to a strictly commercial entity.
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“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 detailed the separation of powers within the industry, adding that the NMDPRA is responsible for all downstream and midstream regulation, while
is NUPRC responsible for all upstream regulations.
“So it’s very important that Nigerians understand that post-PIA, we as NNPC are not regulators,” Ojulari added. He noted that NNPCL is now a “commercial company, which means a company that needs to compete profitably and be successful profitably,” operating without federation allocations and raising its own capital.
The entry of the Dangote Refinery—which adjusted its prices over 20 times in 2025 alone—has fundamentally disrupted the old market equilibrium. Ojulari acknowledged that the scale of such a facility necessitates a period of adjustment for all players.
“To be honest with you, by the time you have a refinery like Dangote in-country, which has not been there before, with NNPC refinery now under a major relook, such a huge refinery in the country, you can expect the market will be impacted right now,” he said. “All we need to do together is to walk through that reality.”
Despite the friction between marketers and producers, Ojulari remains optimistic about Nigeria’s new status as a regional energy hub. “Reality is a great thing to have a major refinery in Nigeria, supplying West Africa and other parts of the world. The question now is, how do we then ensure that the market forces stabilise so that everyone can be okay,” he noted, adding that NNPCL would “let the NMDPRA manage the issue of competitiveness.”
Beyond pump prices, Ojulari briefed the President on significant gains in upstream production. Oil output has climbed from 1.5 million to 1.7 million barrels per day, with gas production now exceeding 7 billion standard cubic feet daily.
“Some of those are underpinned by very structural changes within the organisation,” Ojulari explained.
He also shared a major infrastructure milestone: the completion of the main line for the 614-kilometre Ajaokuta-Kaduna-Kano (AKK) gas pipeline, including the challenging River Niger crossing.
“You remember sometimes in summer, we were able to cross the River Niger, which has been a struggle for many years. By completing this main line, what that means now is that we can begin to connect, make all the connections to the main line, which we will do in the earlier parts of next year,” he said.
Looking ahead to the pipeline’s commissioning in early 2026, he concluded: “We believe that we are in a good state to be able to commence the implementation.”
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