Lately, there has been growing tension between two major entities in Nigeria’s oil sector—NNPC Ltd and Dangote Refinery. Despite their supposed collaboration to ensure energy security for Nigerians, their relationship seems strained, with Dangote accusing NNPC of foul play. However, it’s important to consider the full picture.
At the core of the dispute is pricing. Dangote Refinery, expected to revolutionize Nigeria’s energy landscape, has faced criticism from NNPC Ltd for not disclosing its product prices. While the public perceives NNPC as obstructive, a closer look suggests otherwise. In reality, NNPC has been transparent in its negotiations with Dangote, aiming to secure affordable petrol prices for Nigerians. NNPC has always prioritized the public’s interests, while Dangote’s pursuit of higher margins has led to tensions.
The ongoing deregulation of the petroleum sector means fuel prices are now determined by market forces. While many marketers have shied away from importing PMS due to low profitability, NNPC has continued to import and negotiate for better prices on behalf of Nigerians. Reports suggest that without NNPC’s involvement, Dangote might have set petrol prices as high as ₦1,300 per litre—a price that could have devastated ordinary Nigerians.
The crux of the matter seems to be rooted in Dangote’s discomfort with NNPC’s oversight. The decision to sell crude oil to the refinery in Naira rather than foreign exchange was an effort by the government and NNPC to ensure accountability and fairness. NNPC’s involvement inside the Dangote Refinery is seen as a safeguard against possible exploitation, ensuring that crude oil production and fuel supply are in line with national interests, rather than monopolistic ambitions.
A closer examination of Dangote’s business model shows a tendency toward monopolistic practices. Over the years, Dangote’s dominance in industries like cement and sugar has been well documented. However, oil and petrol are essential commodities, and NNPC Ltd’s role, as outlined in the Petroleum Industry Act (PIA), is to prioritize Nigeria’s energy security—not private profit margins.
As the tension continues, it’s essential for both parties to focus on what matters most—ensuring affordable and sustainable energy for Nigerians. The oil sector cannot be controlled by any single player, and both NNPC Ltd and Dangote Refinery need to work in harmony for the benefit of all.
In the end, it’s not just about business—it’s about fairness, transparency, and ensuring that the average Nigerian is not left to bear the brunt of corporate disputes.
Signed
Patriotic Nigerian.