Nigeria’s petroleum sector has entered a dramatic new era with the Federal Government suspending petrol imports entirely, handing Dangote Refinery control of the N14.4 trillion market after it supplied 92% of February’s fuel needs.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) confirmed no import licences were issued this year, citing sufficient local production of 36.5 million litres daily from Dangote, dwarfing the mere 3 million litres imported. At N1,000 per litre, this equates to a N14.4 trillion annual market now dominated by one player.
Energy experts and stakeholders sounded alarms Wednesday. Professor Emeritus Wumi Iledare warned of market speculation and a “scramble for power”, urging competition over import substitution to stabilise supply. Professor Dayo Ayoade stressed NMDPRA’s duty to prevent profiteering while avoiding over-reliance on Dangote amid Nigeria’s refining gaps.
Finance Minister Wale Edun rejected price controls, insisting market forces prevail despite global crude spikes from the US-Iran war. However, Nigeria Labour Congress’ Christopher Onyeka demanded urgent regulation, calling monopoly “dangerous” for consumers facing transport fare hikes.
Economist Aliyu Alias predicted Dangote could dictate prices unchecked, while CEO Jeremiah Olatide of petroleumprice.ng flagged energy security risks from 90% reliance on one refinery, advocating a safer 70:30 local-import mix.
Organised Private Sector leaders like Dr. Ayo Teriba and Dr. Muda Yusuf opposed regulation, favouring tax cuts on refiners and more refineries for natural competition. NMDPRA’s Saidu Mohammed vowed to resist import lobbies, celebrating the shift from Nigeria’s import-dependent “bad phase”.
As pump prices dipped slightly to N1,130-N1,150 per litre after a N100 gantry cut, stakeholders fear without intervention, Dangote’s dominance could trigger scarcity or hikes amid global oil volatility.
PUNCHONLINE