NNPC Clears the Air: No Monopoly on Dangote Refinery Products

Extremely, there has been some buzz lately about the Nigerian National Petroleum Company Limited NNPC. The Dangote Refinery, and naturally, it's raised a few eyebrows. A group called the Muslim Rights Concern MURIC recently made a pretty bold claim, suggesting that NNPC is somehow the "sole buyer" of petrol from the Dangote Refinery. Their argument? That NNPC is getting in the way of the refinery selling at lower prices. Heavy stuff, right?


But, let’s break this down. NNPC was quick to shut down that narrative. In a recent statement, their Chief Corporate Communications Manager, Olufemi Soneye, made it clear that this whole “sole off-taker” claim is a misread of the facts. Basically, NNPC’s not cornering the market here.


The real scoop? Prices for petrol or Premium Motor Spirit (PMS), if you’re being technical are actually set by global market forces. So, even with a refinery like Dangote’s up and running, it doesn’t automatically mean prices will drop. NNPC pointed out that just because refining happens locally doesn’t mean we're going to see prices fall below what the global market dictates.


Here’s where it gets even more interesting: NNPC also mentioned that they’ll only buy from the Dangote Refinery and only if the market price is higher than what we’re paying at the pump in Nigeria. So, if Dangote’s products come in cheaper? Other marketers can jump in and sell, meaning NNPC isn’t monopolizing the deal.


In short, NNPC wants you to know that they’re not stifling competition or standing in the way of price relief. They’re simply playing by the global pricing rules.


Now, it’s time for a reality check: Just because a product is refined locally doesn’t mean it’ll be cheaper. Those global forces? They’re not exactly taking a break.