NMDPRA Warns Against Monopoly, Backs Supply Chain Players

 

By Esther Ososanya

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reaffirmed its support for suppliers and distributors in the petroleum sector, describing their role as vital to Nigeria’s energy security and economic development.

Speaking at the Annual General Meeting of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) in Abuja, Mrs Ngozi Nwokwo, representative of the NMDPRA Chief Executive, said the Petroleum Industry Act (PIA) empowers non-refinery players to participate fully in the sector.

“If products are refined but not delivered to end-users, the investment is wasted. That’s why we treat distribution as a national strategic concern,” she said.

She added that NMDPRA has developed over 20 regulatory frameworks to ease business operations and reduce entry barriers.

“You no longer need a refinery or depot to operate. With the right license supplier, distributor, or retailer, you can participate in the system,” Nwokwo explained.

She encouraged marketers to use the Authority’s automated platforms or visit any of its 32 trade offices nationwide for licensing and guidance.

Lawmaker Flags Market Distortion Risks

Delivering a message on behalf of Hon. Ikenga Imo Ugochinyere, Chairman of the House Committee on Petroleum Resources (Downstream), Hon. Dr Ahmed Adamu Saba warned of growing concerns over the Dangote Group’s rapid expansion into distribution and marketing.

“We are monitoring closely. While Dangote’s entry is welcome, we must guard against supply bottlenecks, price manipulation, and weakened competition,” Saba said.

He stressed that the National Assembly is working on reforms to reinforce transparency, protect smaller players, and ensure full enforcement of the PIA.

“No one company should dominate or distort a deregulated market. Collaboration between government and industry is key,” he added.

PETROAN: Jobs at Risk, Monopoly Must Be Checked

Prince Dr Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), issued a sharp warning about potential job losses if Dangote’s forward integration strategy goes unchecked.

“You can’t have one company refining, storing, distributing, and setting prices. That’s both player and referee,” he warned.

Gillis-Harry compared the risk to what happened in the cement industry, where monopolistic control drove prices from ₦115 to over ₦10,000 per bag.

“Yesterday, some of our members sold at ₦817 per litre, losing ₦18 per litre. That’s not sustainable. Soon, salaries won’t be paid,” he said.

He urged the government to define roles clearly under the PIA, strengthen regulatory oversight, ensure domestic crude availability for local refineries and maintain regular stakeholder consultations

DAPMAN, Military Call for Safety, Fair Pricing, CNG Expansion

A representative of Mrs Moroti Adedoyin-Adeyinka, Chair of the Depot and Petroleum Products Marketers Association of Nigeria (DAPMAN), said dialogue with Dangote continues, with a shared goal of affordable, high-quality products.

“We’ve been in back-to-back meetings. Our focus remains the Nigerian consumer,” she said.

READ ALSO: NOGASA Warns Dangote Against Monopoly

The Nigerian Armed Forces, represented by the Director of Logistics for Gen. C.G. Musa, Chief of Defence Staff, acknowledged NOGASA’s role in national energy stability.

He called for urgent improvements in transport safety in fuel logistics, CNG refill infrastructure and environmental adoption of LNG for rural cooking.

“CNG conversion is good, but without refill stations, we’ve left a big gap,” he noted.

Industry Calls for Balance, Not Monopoly

Speakers at the event agreed on one thing: Dangote Refinery’s success must not come at the expense of others. Stakeholders urged regulators to ensure no single entity dominates the petroleum supply chain.

“We support Dangote’s growth but not at the cost of competition, jobs, or fair pricing,” said one attendee.

The NMDPRA, National Assembly, and major marketers called for full PIA enforcement, policy clarity, and continuous dialogue to maintain an open, competitive downstream sector.

 

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Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.

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