Stakeholders seek market-driven competition in petroleum sector

Stakeholders in Nigeria’s oil and gas industry have stressed the need for market-driven competition in the downstream sub-sector of oil and gas to attract investments and sustainable growth. Speaking at a media roundtable organised by Extractive360 in Abuja, they highlighted the critical need for fair competition within the downstream sector to ensure a healthy and […]

Stakeholders in Nigeria’s oil and gas industry have stressed the need for market-driven competition in the downstream sub-sector of oil and gas to attract investments and sustainable growth.

Speaking at a media roundtable organised by Extractive360 in Abuja, they highlighted the critical need for fair competition within the downstream sector to ensure a healthy and consumer-friendly market. An oil and gas governance consultant, Ademola Adigun, emphasised that Nigeria’s petroleum downstream sector is not yet prepared to end fuel imports, despite the recent advancements brought by the Dangote Refinery.

He pointed out that although the Dangote Refinery is a remarkable national investment and a source of pride, the current market lacks adequate competition in refining capacity. Adigun said, “The petroleum downstream market must be driven by competition. This competition must be fair, well-regulated, and benefit consumers.” Highlighting the strides made by Dangote Refinery, Adigun described it as “a wondrous investment, a state-of-the-art refinery, and a pride of the nation.”

He reflected on Nigeria’s previous status, saying, “Nigeria was a joke of nations just three years ago, exporting what it doesn’t have and importing what it does. But Dangote Refinery has changed that narrative by now exporting refined petroleum products to other countries.”

Despite this achievement, Adigun warned that the downstream sector still lacks sufficient competition in refining products.

He added, “We should continue to import petrol, not because the market lacks potential, but because there is no true alternative source.”

He cautioned, “For a product as sensitive as petrol, relying on one source of supply is risky and unwise.”

Also speaking, a legal expert Olasubomi Chuku, underlined the legal foundations for competition, describing “a competitive market as open, free, and with multiple independent participants contending for their market share.”

Executive director of Extractive360, Juliet Ukanwosu, described the market dynamics, saying, “Since the removal of fuel subsidies, market forces largely determine pump prices.”

She added, “This has triggered intense competition—often described as a price war—among operators.

“This has led to fluctuating prices and created uncertainty for businesses and consumers alike.”

Ukanwosu identified ongoing challenges to include high operating costs, irregular foreign exchange rates, import dependency for refined products, and infrastructural bottlenecks add strain to the sector.”