Nigerians are taking the ‘Buy Naira to Grow Naija’ slogan seriously this year, as competition between the Nigerian National Petroleum Company Limited and Dangote Refinery has increased considerably. It began to gain momentum after Dangote Refinery slashed its fuel prices to #880 per litre in February. This move was strategically replicated by NNCPL, who reduced their fuel prices to #860 and #880 on Monday.
In 2023, the President, Bola Ahmed Tinubu had announced the removal of fuel subsidy, an action which culminated into a nationwide hike in petrol prices. Following attempts to make Dangote Refinery to purchase crude oil from NNPC, the former announced its capacity to meet Nigeria’s high demand, stating the refinery’s 500 mln litres of petrol as proof.
The refinery also initiated a 500-billion naira lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian National Petroleum Company Limited (NNPC). This legal action had revealed the latter’s issuance of import licenses for petrol, despite domestic availability.
Then, regulatory bodies such as the Federal Competition and Consumer Protection Commission had raised concerns about Dangote’s potential monopolistic stand with substandard products in the petroleum market. However, the Dangote Refinery had cleared such concerns, stating “If you look at all our operations at Dangote Group, we add value; we take local raw materials and turn them into products and we sell”. He further explained that “We have never consciously or unconsciously stopped anybody from doing the same business that we are doing”.
With this new move, the refinery stated that it is part of its efforts in ensuring that Nigerians benefit from a better economy. In the statement, the refinery announced that “The step, effective February 27, 2025 guarantees that none of our valued business partners will experience a loss due to price change. More importantly, it ensures that the new, lower rate takes immediate effect nationwide for the benefit of the Nigerian people.
This price between NNPCL and Dangote Refinery has grown in intensity, but is also contributing to some financial relief for consumers. Many Nigerians have welcomed the reduced fuel prices by patronising Dangote marketers like MRS, Ardova PLC, and Heyden, among others. Additionally, buyers have gravitate more towards these marketers because of the perception that the fuel does last more, compared the lead competitor.
However, as the competition rises, prices are bent to fall, leading to more relief for millions of Nigerians. Billy Gillis-Harry, who is the National President of the Petroleum Retailers Outlets Owners in Nigeria stated that “The price war between NNPCL and Dangote Refinery is a necessary business matrix”. He mentioned that this is “bringing relief to Nigerians facing economic hardship”. Also, he said “This reduction will positively impact millions struggling to cope with the rising cost of living,”.
The Nigerian National Petrol Company Limited (NNPCL) has dominated the market for several decades. With the slashed prices and presence of a local refinery, buyers expect a balance in the sector, with a considerable change in the country’s overall economic situation.
