Bayo Ojulari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), has shared the company's multifaceted approach aimed at ensuring fuel availability and forming refinery partnerships over the next two to three years. This plan is part of a wider reform initiative to address persistent issues within Nigeria's energy sector.
During a discussion at the Nigeria International Energy Summit (NIES) on Wednesday, Mr. Ojulari highlighted that NNPC’s downstream and gas strategy would focus more on taking concrete steps rather than just formulating policy intents.
"What does action look like from an operational, strategic plan? In terms of the narrative of the group, we are pursuing partnerships," he stated.
He affirmed NNPC's commitment to strengthening collaborations with both existing and new refining facilities, particularly with the Dangote Refinery.
"Our partnership with Dangote is reinforced, and we’re optimistic about leveraging this to expand our downstream endeavors," he added.
Mr. Ojulari also pointed out regulatory engagement as a significant facilitator and mentioned positive discussions with Saidu Mohammed, the recent leader of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
"We’ve had dialogues with the new NMDPRA chief, who has provided us with valuable insights on maximizing our operations," he noted.
Concerning fuel pricing, the NNPC chief emphasized that ensuring the security of supply is of utmost importance, arguing that prices will naturally stabilize once availability is secured.
"Pricing is complex, but the primary goal is securing availability. That remains our top priority," he remarked while disputing concerns of excess refining capacity, explaining that demand extends well beyond Nigeria’s borders.
"Our market should not be limited to Nigeria alone. The West African and broader African markets are significant enough," he clarified.
Mr. Ojulari revealed that over the next three to seven years, NNPC identifies a 20 to 30 percent capacity shortfall that could be addressed, thereby validating ongoing investments in refining infrastructure.
"Strategically, investing in refineries is still the prudent course of action," he asserted.
From 2022 to early 2025, Nigeria faced ongoing shortfalls in petrol supply and escalating prices, largely due to the removal of fuel subsidies by President Bola Tinubu in 2023 along with the deregulation of the downstream sector. This situation adversely impacted the business climate, raising overall costs and affecting the economy.
Following the subsidy removal, petrol prices surged, with many areas witnessing prices exceeding N1,000 per litre by late 2024. Fuel shortages also plagued major cities, disrupting daily life and compelling transport operators to increase fares, further straining household budgets.
Analysts have noted that had operational state-owned refineries been functional, the impacts of supply shortages and fuel price fluctuations on households and businesses would have been substantially mitigated.
Although the operational launch of the Dangote Refinery has marked a turning point, ongoing frictions involving regulatory bodies and other stakeholders have led to uncertainties regarding petrol supply, pricing, and import tariffs.
Addressing the complexities of refining in a broader context, Mr. Ojulari urged a shift towards an industrialization perspective, stating, "We need to expand our vision beyond just refining."
He highlighted the Dangote Group’s integrated model, which includes refining, petrochemicals, and fertilizer facilities, asserting that NNPC's future strategy aligns with this comprehensive approach.
"We’re not limiting our focus to just refineries; we are also exploring opportunities in petrochemicals and fertilizer production," he concluded.
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