The Nigerian oil sector is currently undergoing significant changes, with the emergence of new agreements between the Nigerian National Petroleum Company Limited, NNPCL, and major petroleum product distributors, including Dangote Petroleum Refinery. This business relationship has attracted the attention of market players, especially independent distributors, who feel excluded from this new dynamic.
Indeed, the initial agreement gave NNPCL a monopoly on the distribution of petrol from the Dangote refinery. However, some major distributors, including 11 Plc, have already started taking fuel from the refinery to their service stations in Lagos and other parts of the country. This situation raises concerns among independent distributors who feel they are not getting the same opportunities as those already in relationship with NNPCL.
While independent distributors are waiting for the NNPCL to fix the new price of petroleum products so that they can supply themselves, some market players are seriously considering importing to continue their activities. They are therefore calling on the federal government to fully open up the petroleum sector to all players, in order to ensure fair competition and promote better management of supplies.
Furthermore, the persistent wait for the supply of petrol from the Dangote refinery raises questions about the transparency and efficiency of operations. The independent distributors are urging Dangote to sell to them at prices equivalent to those charged by the NNPCL, and are also asking the federal government to give them access to the Port Harcourt refinery to entrust its management to qualified professionals.
However, these new developments raise questions about the transparency of the ongoing operations. It is crucial to obtain more information on the conditions for lifting petroleum products, including the pricing mechanisms and the role of the NNPCL in this new dynamic, according to Dr. Muda Yusuf, Director General of the Centre for the Promotion of Private Enterprise.
Ultimately, the Nigerian oil sector is in turmoil, with players seeking to adapt to these new arrangements and ensure their sustainability in a competitive environment. It is essential that transparency and fairness are at the heart of these developments to ensure the harmonious development of the sector and meet the needs of the Nigerian population in terms of supply of petroleum products.