By Lemmy Ughegbe, Ph.D
The renewed operation of the Port Harcourt and Warri refineries under NNPC Ltd marks a substantial step in Nigeria’s pursuit of energy independence. Although not fully operational, the reopening of these facilities is positive, offering economic stability, more affordable fuel, and improved living standards for citizens. Both industry experts and well-meaning Nigerians have praised this progress.
“Revitalising our refineries is key to energy independence,” said Festus Osifo, President of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), commending the government’s work. However, to avoid market manipulation and artificial scarcity, industry competitiveness must be maintained.
Industry monopolies, however, may hinder this progress. Dangote’s refinery is challenging import licenses given to NNPC and six other companies in Abuja’s Federal High Court. The suit additionally demands ₦100 billion from Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for its purported continued issuance of the licenses. Concerns have arisen from the lawsuit, as many fear that decreased oil sector competition will negatively affect consumers and the economy. According to NMDPRA CEO Mr Farouk Ahmed, Dangote’s actions could lead to a monopoly if the government grants import restrictions at their request.
Comrade Joe Ajaero, President of the Nigeria Labour Congress (NLC), has also warned against monopolistic control of the refining sector, stating, “A single entity controlling Nigeria’s petroleum sector will be a disaster for consumers. We cannot afford to replace government inefficiencies with private sector exploitation. We must safeguard competitive pricing and accessibility.
The dispute between Dangote Refinery and the Federal Competition and Consumer Protection Commission (FCCPC) regarding alleged monopolies highlights the risks of one company controlling Nigeria’s oil market. Before the court, the FCCPC argued against Dangote’s fuel import restrictions, citing the importance of market competition for consumer protection and stable prices. This lawsuit represents a broader fight against monopolies in Nigeria’s energy industry, ensuring fair profit distribution from refinery investments among multiple companies instead of concentrating it in one powerful corporation.
Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), also complained about the implications of a refinery monopoly, stating, “For a healthy downstream sector, multiple players must have access to refined products. If we create an oil refining monopoly, Nigerians will suffer the consequences through unregulated pricing and potential shortages.”
Despite its value to Nigeria and private ownership, the Dangote Refinery is fundamentally profit-oriented. Nigerians should not expect charitable handouts or manipulated low prices from a billionaire capitalist’s refinery. It’s extremely dangerous to entrust a single entity, no matter how patriotic, with our nation’s energy security. Energy security is too important to rely on a single individual or corporation. Neither government nor court should allow Dangote, NNPC Ltd, or any private player a monopoly. A catastrophic policy failure with lasting effects on national stability and economic sustainability would result from allowing a single refinery to dominate and dictate market conditions.
Instead, Nigeria should foster competition by backing the privately managed public asset—NNPC Ltd, Dangote Refinery, and other prospective investors in the refining industry. Government policies should prioritise a competitive refining market benefiting all Nigerians, not just one company’s profits. That’s the only way the nation can achieve true energy security, economic prosperity, and fair product pricing.
Lemmy Ughegbe, Ph.D, who writes from Abuja is a journalist, media critic, scholar and public policy influencer
Email: lemmyughegbeofficial@gmail.com
WhatsApp Only: +2348069716645
