Dangote Refinery: House of Reps Seeks End to NNPCL Fuel Monopoly
Lawmakers in Nigeria’s House of Representatives have asked the President Bola Tinubu-led administration to direct the Nigerian National Petroleum Corporation Limited (NNPCL) and Dangote Refinery to allow independent marketers to lift fuel from the newly operational Dangote Refinery.
This resolution followed a motion by Oboku Oforji, representing Yenagoa/Opokuma Federal Constituency of Bayelsa State, which was adopted during Thursday’s plenary in Abuja.
Oforji expressed concerns over the monopoly being created by restricting fuel lifting to only major marketers, warning that independent marketers may resort to imports to sustain their businesses.
“The House is worried that NNPCL and major marketers as exclusive off-takers spell monopoly, which is equivalent to greed. This is the same NNPCL that has failed to manage our crude and refineries for decades,” Oforji noted.
There has been growing concern among Nigerians that the exclusive access given to NNPCL to lift Dangote’s petrol, which started operations on September 15, will create a monopoly that will lead to a price hike in the product.
Earlier this week, Aare Afe Babalola, the founder of Afe Babalola University (ABUAD), asked NNPCL to dismantle its monopoly on fuel sales and allow the Dangote Refinery to sell fuel at competitive rates that could alleviate the financial burden on Nigerians.
“If Dangote has invested heavily in building a state-of-the-art refinery, why should NNPC require him to sell to them first?” Babalola questioned. “Let anyone who can build a refinery do so and sell directly to the public. This competition will drive prices down.”
Although Oforji commended the Dangote Group for commencing petroleum refining, he stressed the need for inclusivity in fuel distribution, warning that if the monopoly persists, “the suffering of Nigerians occasioned by the scarcity of PMS will continue, with disastrous consequences for the economy.”
In response, the House urged the Dangote Refinery to collaborate with stakeholders to establish depots across Nigeria’s geo-political zones, enhancing petroleum availability.
Additionally, Speaker Tajudeen Abbas inaugurated a panel chaired by House Leader Julius Ihonvbere to investigate the crisis in the petroleum sector and recommend solutions.
