Nigeria Will Witness New Petroleum Pricing Dynamics With Operation Of Public Refineries – Don

A University Don and lecturer in Energy Marketing at Ignatius Ajuru University of Education, Dr. Joseph Obele, has said that efforts by the Nigerian National Petroleum Company Limited (NNPCL) to restart Warri and Port Harcourt refineries would encourage a shift in pricing dynamics of refined petroleum products in the country.

Obele stated that the partnership between the NNPCL and its Chinese counterparts would trigger stronger competition in Nigeria’s downstream petroleum sector and dismantle every form of monopoly that has negatively affected consumers over the years.

He explained that once competition fully sets in, consumers of petroleum products will begin to enjoy better value, improved product availability, and more affordable prices across the country.

He also described the growing opposition against the refinery partnership deal involving Chinese investors as politically motivated, alleging that many of the critics are opponents of President Bola Ahmed Tinubu’s economic reforms and supporters of monopoly in Nigeria’s downstream petroleum sector.

Reacting to recent comments made on Arise Television by former President of the Organised Private Sector of Nigeria (OPSN), Dele Oye, Dr. Obele said while constructive criticism is healthy in a democracy, outright opposition to new refinery investments without allowing the process to mature could discourage foreign direct investment and slow Nigeria’s industrial progress.

According to Dr. Obele, the proposed partnership with Chinese firms is aimed at expanding Nigeria’s refining capacity, creating jobs, attracting foreign direct investment, boosting technology transfer, and strengthening the nation’s energy security.

He noted that countries seeking industrial growth and economic transformation cannot afford to reject foreign investments capable of reviving critical sectors such as refining, petrochemicals, and energy infrastructure.

Dr. Obele argued that some individuals and groups attacking the agreement are uncomfortable with the opening up of the sector to broader participation because they have benefited for years from monopoly, import dependency, and limited competition within the petroleum industry.

He further stated that President Tinubu’s administration has continued to encourage international partnerships and private sector investments as part of efforts to reposition Nigeria’s economy and end decades of inefficiency in the oil and gas sector.

According to him, the entry of additional refinery investors into Nigeria will help stabilize fuel supply, reduce pressure on foreign exchange, encourage healthy competition, and ultimately lower the cost of petroleum products for consumers.

The energy expert acknowledged concerns raised about technical competence and transparency but maintained that such issues should be addressed through due regulatory processes, detailed negotiations, performance benchmarks, and proper monitoring rather than public campaigns capable of undermining investor confidence.

Dr. Obele who is a member of the refinery host community also revealed that many host community members have welcomed the refinery partnership initiative, stressing that Alesa Eleme community as the core host community to Port Harcourt Refinery have complained of neglect despite over 50 years of operations by the Nigerian National Petroleum Company Limited (NNPC Ltd.)⁠

He stated that his community members believe the new investment could bring meaningful development, employment opportunities, infrastructure, skills acquisition, and improved economic activities that were lacking for decades.

According to him, stakeholders across the energy sector have described the development as a welcome initiative capable of boosting investor confidence and strengthening the economic reform agenda of President Bola Ahmed Tinubu.

He added that stakeholders and host communities are already looking forward to receiving the investors and are prepared to provide a peaceful, hospitable, and supportive working environment to ensure the success of the project.

He stressed that Nigeria, as Africa’s leading oil-producing nation, should not depend heavily on imported refined products when there are opportunities to establish more local refineries through strategic global partnerships.

Dr. Obele called on Nigerians to support every genuine investment capable of promoting industrialization, employment opportunities, energy sufficiency, and economic growth rather than politicizing developmental initiatives.

He added that no single refinery should dominate the nation’s energy market, emphasizing that competition remains essential for efficiency, price stability, innovation, and long-term sustainability in the sector.

He urged the NNPCL and the Chinese investors to give due consideration to the host communities in the MOU regarding adequate equity.