Business
NNPCL-Dangote price war: Oil marketers incur losses, reduce purchase
The price war, primarily between Dangote Petroleum Refinery and the Nigerian National Petroleum Corporation Limited, began in November 2024 when the Africa’s largest private refinery lowered the price of petrol from N990 to N970 per litre.
Dangote further reduced it to N899 per litre, citing the need to provide relief for Nigerians during the holiday season.
Days after Dangote’s move, NNPCL also slashed its ex-depot price of the product from N1,040 to N899 per litre, according to the Petroleum Products Retail Outlets Owners Association of Nigeria.
On February 1, 2025, Dangote Refinery again reduced the petrol price to N890 per litre before further lowering it to N825 per litre on February 27, setting the stage for continued pricing competition with NNPCL.
In a statement signed by its Group Chief Branding and Communications Officer, Anthony Chiejina, the refinery said the price adjustment was a direct response to the positive outlook within the global energy and gas markets and the recent reduction in international crude oil prices.
However, on March 3, 2025, some NNPCL retail outlets reported that the oil firm had also adjusted its petrol pump price to N860 per litre, reflecting the intense price war among fuel merchants.
According to stakeholders in the downstream sector, the frequent price reductions, signaling the ongoing price war between Dangote Refinery and NNPCL, have been beneficial to Nigerians.
However, energy experts argue that the continuous decline in PMS prices has been causing significant losses for oil marketers and importers, who lose an average of N2.5bn daily and N75bn monthly.
Amid mounting losses, oil marketers under PETROAN have called for a regulation mandating that fuel prices be adjusted only every six months, but it remains uncertain whether the regulatory body will approve the demand.
He said, “The ongoing price reduction is affecting oil marketers negatively because we are losing money. For instance, if I buy products at N900 per litre today and the price drops by evening, you can see the problem, especially if the product is meant to last a month. That is the challenge marketers are facing now.
“Not buying large volumes of PMS is the only way to play it safe because when you buy in bulk, the price may drop again, which is exactly what is happening now. For all marketers, that is the reality we are dealing with.
“We just need to be careful when making purchases. We must equip ourselves with adequate information by understanding global market trends before buying. And we will only purchase products we are confident can be sold within a week.”
When asked if marketers had begun reducing their purchase volumes, the IPMAN VP said, “Of course. Any reasonable person would do that to minimise losses. Our people have already started. It is just a precautionary measure. How long this will last depend on the situation. If the price stabilises, everyone will relax and return to normal business. But if it remains unstable, there will always be the fear that prices could drop at any time. So, everyone would rather be cautious. It is about avoiding excessive losses. However, this practice might not last long, as it is only a short-term measure.”
In yet another price change, the landing cost of PMS on Tuesday dropped to N774.82 per litre, making it cheaper than Dangote Refinery’s ex-depot price of N825 per litre.
Marketers suggested that the continued drop in global oil prices could push the pump price of PMS to around N800 per litre. They added that the latest reduction in fuel import landing costs would further intensify the price war between Dangote Refinery, NNPC, and fuel importers.
However, speaking on Thursday, Fashola noted that prices could fall even further to as low as N500 per litre if crude oil drops to around $40 per barrel and the naira strengthens to below N1,000 per dollar.
He said, “On Tuesday, the landing cost of imported fuel was N774.82 per litre, cheaper than what Dangote was selling. But Dangote responded by lowering its price to N815 per litre. So, I believe this price war is beneficial for Nigeria. That is the beauty of deregulation. It fosters competition. As more players enter the market, we expect further price reductions.”
In its latest foreign trade report, the Nigerian Bureau of Statistics disclosed that the country’s petrol imports surged by 105 percent in 2024, reaching a staggering N15.42tn.
According to energy experts, the rise in fuel imports has raised concerns about the viability of local refineries and the impact of the ongoing price war between NNPC and Dangote Refinery.
But the IPMAN VP said aside from preventing monopolies, the increased fuel imports and lower-cost imported products are driving down the prices of locally refined petrol.
He said, “We should not be selfish. We must allow an open market where everyone can participate. We must also avoid monopolies because we do not want anyone taking undue advantage of Nigerians.
“If we shut the market to fuel imports, we know how a typical Nigerian business will behave. So, allowing importation serves as a check and balance. I see no reason why imported PMS should be cheaper than locally refined fuel.”
“In anything you do, there must be an alternative to prevent monopolies and ensure no one takes advantage of others. If importation is allowed and someone can bring in fuel at a lower price, what Nigeria needs is affordable, high-quality fuel. This will push local refiners to become more competitive and lower their prices because I see no reason why imported fuel should be cheaper than locally refined products,” the IPMAN VP stated.
Meanwhile, the Managing Director of Financial Derivatives Company, Bismarck Rewane, has stated that the ongoing price war among the fuel merchants will only persist if the global oil price continues to drop as witnessed in recent days.
The renowned economist noted that if the global price of crude increases again, the price of the product would definitely go up in the country as the local producers cannot sell below their cost price.
He stated, “The price of crude determines the price of its refined products. So, the only reason the price war will continue is if the price of crude oil drops sharply. Then, we would see a further drop in the price of petrol. But if the price of crude increases again, which nobody can predict, we will see an increase in the price of petrol. It is not in the hands of the refiners but on the global oil market, which is outside our control.”
Explaining why there is an obvious competition between Dangote and NNPCL, he said, “What do you expect? There must be competition. The way I see them, there is competition. But only one man can win. Whether there is competition or not, you must survive to be able to compete. And the only way you can survive is if you are selling above your cost price. As competitors, pricing is one of the tools for competition. When it’s comfortable, they will bring down their price within the market share. But when it is not comfortable, they won’t bring down the price.”
Source: PUNCH
By Chinedu Sabastine
ENUGU – Value Circle Africa (VCA), a marketing outfit dealing in organic food products, has launched operations in Enugu, promising to promote health and wealth creation among millions of Africans.
The company, which markets products including soya bean oil, swallow, fufu and Ganadima mushroom, said it was targeting 20 million Africans through its business model.
Speaking at the unveiling in Enugu, Chairman of VCA, Elder Dennis Ogbonnaya Nwankwo, claimed that participants who purchase products worth N65,000 could earn up to N550,000 over six months under the company’s reward scheme.
Nwankwo said VCA was an offshoot of Nature’s Renaissance International Limited (NRI), founded by High Chief Clinton Brown Odiagbe.
He explained that the initiative was designed to share the company’s profits with customers rather than concentrate its earnings on business expansion.
According to him, a participant who purchases products worth N65,000 would receive N50,000 initially, with subsequent monthly payments of N100,000, subject to the company’s stated terms.
He further claimed that an investment of N6.5 million could yield about N55 million within six months.
Nwankwo said the company manufactured its organic products and intended to use the proceeds to improve the financial circumstances and health of its customers.
“Every other company is marketing its products and making its profit. We manufacture our organic products, including soya bean oil, swallow, fufu and Ganadima mushroom.
“But we decided that we should not use the money to establish an airline or acquire more estates. Instead, we decided to share it with people around us,” he said.
He added that the company encouraged participants to reinvest their earnings to build sustainable financial capacity.
“We believe that if we continue to do this, we will also train people not to consume all the money they earn but to reinvest it. That is how we intend to wipe away poverty,” he said.
The VCA chairman urged interested persons to participate in the scheme, claiming that those who borrowed N65,000 to purchase the products could repay their loans from subsequent payments.
He, however, did not provide independently verified financial records to substantiate the returns being promised.
One of the company’s beneficiaries, Pastor David Ime Jesus, said he joined the scheme in June 2026 and had received payments under the arrangement.
“I began to invest in June and have been earning N100,000 every month since the initial N50,000 I earned in July,” he said.
Business
No Bad Blood Over New Cement Factories, But Our Mining Rights Run Till 2045 — Ibeto Tells Ebonyi Govt
ABAKALIKI, EBONYI STATE — Billionaire industrialist and Chairman of Ibeto Group, Dr. Cletus Ibeto, has clarified his position on plans by the Ebonyi State Government to establish a new cement manufacturing plant, saying he has no objection to fresh investment in the state provided his company’s existing mining rights are respected.
Ibeto, who is also a core investor in the Nigerian Cement Company (Nigercem), said the proposed development should not interfere with areas covered by valid mining leases held by his company.
“We are not against the establishment of new cement factories in Ebonyi State. However, such developments must not interfere with or overlap the specific areas where Ibeto Group holds valid Mining Lease Licences issued by the Federal Ministry,” Ibeto stated.
He said the company’s statutory mining leases covering limestone deposits in the Nkalagu axis remain valid until 2045.
Ibeto stressed the need for proper delineation and mapping of mining areas to prevent conflicts between existing title holders and new investors seeking to establish businesses in the state.
Under Nigeria’s legal framework, mineral resources are vested in the Federal Government, with mineral titles administered through the Federal Ministry of Solid Minerals Development and the Mining Cadastre Office.
Nigercem Ready to Resume Operations
Addressing concerns over the future of the historic Nigercem plant, Ibeto said Ibeto Group remains committed to reviving the facility and is ready to commence work once outstanding administrative issues with the state government are resolved.
He said the company’s position should not be interpreted as opposition to new investment in Ebonyi, stressing that his concern was the protection of legally acquired mining rights.
The development could pave the way for both the revival of Nigercem and the entry of new investors into Ebonyi’s cement industry, provided the respective mining areas are clearly mapped out and existing legal titles are respected.
Business
Patience Jonathan Hails Azikel Boss Eruani as ‘Small Boy’ She Mentored Into Billionaire League
She said her guidance was behind his bold entry into big business at a relatively young age.
The former First Lady spoke on Tuesday in a video which went viral on Thursday during an inspection tour of the Azikel Refinery in Obunagha, Bayelsa State, alongside other dignitaries.
She said she personally introduced Eruani to billionaire businessmen, Aliko Dangote and Aminu Dantata, and pushed him to aspire to their level despite being the youngest among them.
“He’s a boy that I brought up. We are always together. Although he’s the little one among us when we are friends — Dangote, Seyi, Dantata, Eruani — among us, he’s the smallest. But I made sure he followed the Dangotes, he followed Dantata.
“Because I’m a woman in their midst, I made sure I told this small boy, ‘Go and follow them, and stop the grammar.’ But when he told me that one day he would be like Dangote, I said, ‘You’re thinking too high.’ I prayed to God to grant him his heart’s desire,” she said.
The former First Lady also recalled how the immediate past APC administration under Muhammadu Buhari initially failed to grant Eruani a refinery licence before eventually approving three.
“During the Buhari administration, he and others came to me and told me they were going to apply for a refinery. I told him, ‘Eruani, your brother, the President, did not give you a refinery.
“Is it the APC government that will give you one?’ I prayed it would happen. But later, they came back and told me they had been given three refineries,” she said.
The 25,000 barrels-per-day plant is a private hydro-skimming refinery designed to process condensate into petrol, diesel, aviation fuel, kerosene and other products.
It is set to become Nigeria’s second-largest full-slate refinery and the first major privately owned refinery in the Niger Delta.
The Managing Director/Chief Executive Officer of the Niger Delta Development Commission, Samuel Ogbuku, who joined the inspection tour, commended Eruani for his perseverance, noting that he had attended the project’s groundbreaking ceremony eight years ago.
Ogbuku described the refinery as an inspiration and a potential catalyst for investment, job creation and economic growth in Bayelsa State, and urged residents, particularly youths, to key into the opportunities it would create.
He also praised the Bayelsa State Government for improving road infrastructure leading to the refinery site and called for continued support for the project.
Governor Douye Diri, who was represented at the inspection by his deputy, Peter Akpe, has consistently backed the project, which is expected to employ hundreds of workers and drive industrialisation in the state.
Other dignitaries at the event included the Chairman of the Bayelsa State Council of Traditional Rulers, King Bubaraye Dakolo; Vice President of Azikel Group, Presley Asemota; and Isaac Yalah, among others.
A market check on Tuesday showed that NNPCL outlets in Abuja and nearby areas adjusted their petrol price from N1,155 per litre to N1,270 per litre.
The latest adjustment represents an increase of N115 per litre by the state-owned oil company.
The new price change follows recent increases by depot owners and petroleum marketers, who have adjusted their rates twice within a week.
The latest development also comes days after Dangote Refinery resumed the sale of refined petroleum products in dollars, a move that has raised concerns among industry players over the direction of fuel pricing in the country.
The Federal Government has disclosed that 13 of the 50 oil and gas blocks offered in the 2025 Licensing Round will be returned to the licensing basket after failing to attract bids from prospective investors.
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, disclosed this on Tuesday at the 2025 Commercial Bid Conference in Abuja.
Eyesan said that although 50 blocks were initially put up for bidding, prospective investors showed interest in only 37.
“At the end of the exercise, we had 50 blocks on offer, but we only had representation for 37 of those 50 blocks. Thirteen of those blocks will be returning back to the basket,” she said.
She further disclosed that 143 companies participated in the commercial bid process, submitting about 200 bids for the available oil and gas assets.
“We have a total of 143 companies showing interest for 200 bids. That, for us, was remarkable, and I must say thank you,” Eyesan stated.
According to her, nearly 300 companies initially expressed interest in the licensing round, which she described as a sign of renewed investor confidence in Nigeria’s upstream petroleum sector.
“When we started the journey, we got interest from almost 300 companies. I repeat, almost 300 companies. That, in my view, was an indication that the tide has turned for Nigeria,” she said.
She explained that the number of interested companies was reduced to 196 following the prequalification stage, before the process moved to the technical and commercial evaluation phases.
“From the almost 300 interests that we got, we moved to the pre-qualification stage, and that number was pruned down to 196,” she added.
The 2025 Licensing Round was launched on November 11, 2025, in accordance with the Petroleum Industry Act 2021, with 50 oil and gas blocks put up for bidding across seven sedimentary basins.
The assets comprise 16 Niger Delta onshore blocks, 18 shallow-water blocks, one deep offshore block, three blocks in the Benin Basin, four in the Anambra Basin, four in the Chad Basin and four in the Benue Trough.
The bid portal opened on December 1, 2025, while a pre-bid conference was held in Lagos on January 14, 2026, to provide prospective investors with guidance on the bidding requirements.
Registration and prequalification submissions closed on February 27, 2026, with the prequalification process completed on March 16.
The NUPRC said winning bids are being determined through a weighted evaluation that considers signature bonus commitments, proposed work programmes and performance security. The process combines technical and commercial scores rather than relying solely on financial offers.
The framework is aimed at ensuring that Nigeria’s petroleum assets are awarded to investors with the financial capacity, technical expertise and operational strength required to accelerate exploration and production in the country’s upstream sector.
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