Aliko Dangote’s 650,000-barrel-per-day refinery has triggered intense competition in Nigeria’s downstream oil market by slashing the ex-depot price of petrol. This move has forced the Nigerian National Petroleum Corporation (NNPC) to adjust its pricing strategy to remain competitive. The price reduction has led to a notable drop in fuel costs in Lagos, aligning with broader market trends following the government’s removal of fuel subsidies. With independent marketers reacting cautiously, industry observers suggest this could mark a shift toward a more market-driven fuel pricing system.
While the development brings economic relief to consumers, concerns have emerged over potential monopolistic control. The Independent Petroleum Marketers Association of Nigeria (IPMAN) claims it was unaware of the price adjustments, raising questions about transparency in the industry. Analysts warn that if unchecked, Dangote’s dominance in oil refining could mirror his stronghold in the cement sector. Stakeholders are calling for regulatory oversight to ensure a balanced market that benefits both businesses and consumers.
