The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), Mr Bayo Ojulari, has assured Nigerians that the ongoing price competition in the downstream petroleum sector will ultimately benefit consumers.

Ojulari gave the assurance on Sunday while speaking with journalists after briefing President Bola Tinubu in Lagos.

He described the current tensions in the petroleum market as a natural outcome of Nigeria’s transition from heavy dependence on fuel importation to domestic refining.

According to him, healthy competition in any market usually favours consumers, adding that the present price adjustments would stabilise over time.

“Where there is healthy competition, the buyers are the ultimate beneficiaries. I think we need to keep in mind that the market will stabilise.

“After a while, there will be some tension because we are going through a major transition,” Ojulari said.

The NNPC boss made the remarks against the backdrop of intense competition in the downstream sector, which has led to a sharp drop in petrol prices from over N1,200 per litre in November 2024 to as low as N739 per litre at some retail outlets in December 2025.

The development was driven largely by competition among Dangote Refinery, NNPCL retail outlets and independent petroleum marketers.

“At the end of the day, Nigerians on the street are going to be the beneficiaries,” Ojulari added.

He clarified that under the Petroleum Industry Act (PIA), NNPCL no longer plays a regulatory role in the petroleum sector.

Ojulari explained that the PIA clearly separated regulatory functions from commercial operations, assigning regulation of the downstream and midstream sectors to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), while upstream regulation is handled by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

“The PIA did something fundamental. Before the PIA in 2021, which took effect in 2022, everything was under NNPC, including regulation.

“Post-PIA, we as NNPC are not regulators. We are now a commercial company that must compete and operate profitably,” he said.

Ojulari further disclosed that NNPCL no longer receives allocations from the Federation Account and now raises finance independently like any other commercial enterprise.

Nigeria’s downstream petroleum sector has witnessed increased competition since September 2024, following the commencement of petrol production by the Dangote Refinery, Africa’s largest single-train refinery with a capacity of 650,000 barrels per day.

Data from the National Bureau of Statistics showed that the average retail price of Premium Motor Spirit dropped by N153 per litre between November 2024 and November 2025, falling from N1,214.17 to N1,061.35.

The price competition intensified in December 2025 after Dangote Refinery reduced its ex-depot price from N970 to N699 per litre.

Consequently, MRS filling stations, Dangote’s retail partner, sold petrol at N739 per litre nationwide, while NNPCL retail outlets reduced prices from N875 to between N825 and N840 per litre, depending on location. Independent marketers also adjusted prices, with some selling as low as N865 per litre.

Industry data indicated that Dangote Refinery made over 20 price adjustments in 2025 alone, creating challenges for marketers who purchased fuel at higher prices.

Confirming the situation, the Independent Petroleum Marketers Association of Nigeria (IPMAN) said price competition now determines customer loyalty, noting that marketers who fail to adjust prices risk losing patronage and incurring bank interest losses.

Ojulari described NNPCL as the “supplier of last resort” and said the company was working closely with all major downstream players, including Dangote Refinery, to ensure product availability nationwide.

“For us, our focus is to generate more production. As production increases, there will be more supply to feed the refineries and create flexibility for downstream players to participate effectively,” he said.

He acknowledged that the simultaneous operation of large refineries, including Dangote Refinery and NNPCL’s rehabilitated facilities, had disrupted market equilibrium.

However, he described the development as positive for the country and urged stakeholders to allow market forces to stabilise.

“It is a good thing to have a major refinery in Nigeria supplying West Africa and beyond. The key issue now is how market forces will stabilise so that everyone can operate sustainably,” Ojulari said.

The GCEO also disclosed that Nigeria’s crude oil production had increased from about 1.5 million barrels per day in 2024 to over 1.7 million barrels per day in 2025, attributing the growth to structural reforms within NNPCL.

He said gas production had also risen from 6.5 billion to over seven billion standard cubic feet per day.

Ojulari added that NNPCL targets crude oil production of at least 1.8 million barrels per day in 2026, as part of efforts to meet President Tinubu’s goal of two million barrels per day by 2027 and attract over 30 billion dollars in investment by 2030.

On infrastructure development, he disclosed that the welding of the main line of the 614-kilometre Ajaokuta–Kaduna–Kano (AKK) gas pipeline, including the River Niger crossing, had been completed.

He said the pipeline would supply gas to northern Nigeria for industrialisation, power generation and fertiliser production when commissioned in early 2026.

“We believe we are in a good state to commence full implementation,” Ojulari said.