Oil & Gas Stakeholders Seek Market-driven Competition To Attract Investments

Stakeholders in Nigeria’s oil and gas industry stressed that “market-driven competition” is essential to “attract investments” and “ensure sustainable growth” in the petroleum downstream sector.

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, declared emphatically,

“The petroleum downstream market must be driven by competition.”
He insisted that “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, he proudly stated, “Dangote Refinery has changed that narrative by now exporting refined petroleum products to other countries.”

Despite this achievement, Adigun warned sharply, “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.”

Speaking also on regulatory issues, Adigun acknowledged the “delicate position” of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). He stated plainly, “The NMDPRA needs to step up their game.” He explained the difficult balancing act: “Whenever they attempt to do their jobs properly, some accuse them of bias, and when they fail to act, others accuse them of favouring certain players.” He concluded, “Frequent price adjustment impacts the market negatively, and Nigerians are the victims of poor regulation in the petroleum downstream sector.”

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.”

She cited the Petroleum Industry Act (PIA), noting, “Section 8(1)(d) of the PIA says, ‘NMDPRA shall ensure fair pricing and competition in the midstream and downstream petroleum operations.’” She also referenced Section 205(2), which “states that no person shall fix prices or restrict petroleum supply except as provided under the Act.”

Chuku went further to explain enforcement under the Federal Competition and Consumer Protection Act (FCCP) by stating, “Section 70 defines abuse of dominant position to include excessive pricing and unequal market participation conditions.” She emphasised, “Sections 120-126 of the FCCP Act mandate the FCCPC to monitor and investigate anti-competitive practices.”

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

Ukanwosu identified ongoing challenges: “High operating costs, irregular foreign exchange rates, import dependency for refined products, and infrastructural bottlenecks add strain to the sector.” Nonetheless, she shared optimism: “The liberalisation policy has opened up space for more private sector participation, investment in storage and distribution infrastructure, and discussions around refining capacity expansion.”

Summing up the sector’s outlook, Ukanwosu said, “Overall, the sector is in a state of adjustment—seeking stability and competitiveness amid shifting regulations, volatile market dynamics, and evolving public expectations.”