The Nigerian National Petroleum Company Limited (NNPC Ltd) has responded to a statement issued by the Muslim Rights Concern (MURIC), which claimed that the company’s actions are undermining the Dangote Refinery Limited (DRL) and monopolizing the domestic petroleum market. Specifically, MURIC asserted that NNPC Ltd has become the sole offtaker of products from the Dangote Refinery and that this would prevent the refinery from offering lower fuel prices to the Nigerian market.
In a detailed rebuttal, NNPC Ltd has categorically denied these allegations, clarifying that the company is not the exclusive buyer of products from the Dangote Refinery or any other domestic refinery. The company emphasized that the Nigerian petroleum market operates under a deregulated, competitive framework where market forces determine pricing.
NNPC Ltd stated that the pricing of Premium Motor Spirit (PMS) and other petroleum products from refineries, including the Dangote Refinery, is influenced by global market forces, not by the actions of the NNPC. The recent fluctuations in the pump price of PMS, the statement clarified, are a result of these global dynamics. According to NNPC Ltd, these changes in PMS prices do not hinder the Dangote Refinery or any other domestic refinery from offering lower prices.
If current prices are perceived as high, it presents an ideal opportunity for domestic refineries like the DRL to step in and offer lower-priced alternatives to the Nigerian market,” the NNPC statement read.
NNPC Ltd further reiterated its commitment to a free market environment, highlighting that any domestic refinery, including DRL, is free to sell its products directly to marketers on a “willing buyer, willing seller” basis. In such a deregulated system, no single entity, including the NNPC, can control the entire market.
“NNPC Ltd has no intention or desire to become the sole distributor for any refinery in a competitive market. The notion of NNPC being the sole offtaker does not arise, as refineries can sell to any marketer,” said Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd.
The statement also addressed concerns regarding lower pricing associated with domestic refining. NNPC Ltd explained that there is no automatic guarantee that domestic refining would result in lower prices for consumers. Global parity pricing still applies, and only if market prices outside Nigeria are higher would NNPC Ltd consider fully offtaking PMS from the Dangote Refinery.
NNPC Ltd also pointed out its significant financial stake in the Dangote Refinery, stating, “The NNPC Ltd cannot undermine a business in which it holds a multi-billion-dollar stake.”
In its closing remarks, NNPC Ltd expressed disappointment over MURIC’s claims, suggesting that the advocacy group should have conducted thorough research before making public statements. “As an advocacy group for fair and just treatment, MURIC should have verified the facts before making statements that are entirely flawed and have the potential to incite ordinary Nigerians against NNPC Ltd,” Soneye said.
NNPC Ltd continues to emphasize its commitment to maintaining transparency and fostering a competitive, deregulated petroleum market that benefits all Nigerians.
