We see the ongoing controversy over the refined products of the Nigerian National Petroleum Company Limited, NNPCL, and Dangote Refinery, DR, as a celebration of the full restoration of petroleum products refining capacity to the Nigerian domestic market after decades of dependence on importation.
In August 2024, Dangote Refinery, the 650,000 barrels per day largest single-train refining factory in the world, started test-running the sale of its products to marketers. The NNPCL, under Mele Kyari, pleasantly shocked most Nigerians a few months later in November 2024 when it also beat the odds and reopened its refurbished Port Harcourt Refinery. It immediately set its eyes on the completion of its Warri and Kaduna refineries.
The controversy arose when some social media influencers started comparing the perceived qualities of Dangote and NNPCL products. Of particular note was the viral social media post where an individual claimed his experiment proved that Dangote petrol “lasted longer”. That is a complete fallacy.
There are peculiarities of our renascent refined products market that we need to take note of and be properly informed. In the first place, there is no market “war” between Dangote and NNPCL. Though they are private or independent businesses, the Nigerian people through the Federal Government, own shares in them. They equally belong to all of us. They are proudly Nigerian.
It is totally wrong to say only a particular company or select group of marketers pick their products from any domestic refiner. The NNPCL has already informed the public that even their outlets in some parts of the country, especially the Lagos area, sell Dangote products because it is cheaper than coming all the way to Port Harcourt to load. Pretty much every marketer in that part of the country buy and sell Dangote. They also mainly patronise NNPCL for the same reason in the Port Harcourt areas.
We strongly believe that the laws and realities of the marketplace will force all products refined in Nigeria, including those of the oncoming refineries, to find their niches and thrive within and outside Nigeria.
We must desist from manufacturing frictions among providers of essential goods and services. This hurts the economy. We may unwittingly be straying into the territory of economic sabotage, which carries a price within the law. The market is an open space, and people should feel free to exploit it without being hoodwinked or cajoled.
We also call on the Federal Government to rehabilitate our pipeline networks and depots. This will bring down costs and foster ease of doing business in the petroleum sector.
