The Federal Government has stepped up efforts to ease the cost of petroleum products, directing marketers to reflect the recent decline in global crude oil prices in pump prices, while independent marketers urged the Nigerian National Petroleum Company Limited (NNPCL) to accelerate plans to expand domestic refining capacity through a partnership with Chinese firms.
Speaking at the 2026 Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) General Counsel and Legal Advisers’ Forum in Abuja on Monday, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the easing of geopolitical tensions following the de-escalation of the Iran-Israel conflict had lowered international oil prices and should translate into cheaper petrol and other refined products.
Lokpobiri said marketers operating under Nigeria’s deregulated downstream market should adjust pump prices to reflect prevailing market conditions rather than retain higher margins.
While acknowledging that prices are determined by market forces under the deregulated regime, he warned against profiteering at the expense of consumers.
“The sector is now fully deregulated, a bold reform that President Bola Tinubu had the courage to implement. That decision paved the way for the operationalisation of the Dangote Refinery and other refinery projects currently underway,” he said.
According to the minister, the regulator has a responsibility to ensure deregulation promotes competition and consumer protection rather than excessive profit-taking. He also urged regulators to provide clear and predictable policies capable of attracting long-term investment into the petroleum industry.
“For too long, the dominant question has been whether operators are complying. Compliance is important, but investors are increasingly looking for jurisdictions with regulatory certainty,” he said.
Lokpobiri also stressed the need for stricter oversight to ensure consumers receive the correct quantity of fuel for every litre purchased.
His remarks came as the Independent Petroleum Marketers Association of Nigeria (IPMAN) called on NNPCL to fast-track the proposed Technical Equity Partnership with Chinese firms, Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd, for the completion and operation of the Warri and Port Harcourt refineries.
In a statement issued by former Unit Chairman and Zonal Secretary of IPMAN Eastern Zone (System 2E), Inimgba Emmanuel Okubowei, the marketers said delays in concluding the partnership were slowing efforts to boost domestic refining capacity and depriving Nigerians of the economic benefits expected from the investment.
The partnership, initiated through the signing of a Memorandum of Understanding on April 30, 2026, is expected to support the rehabilitation, expansion and long-term operation of the two state-owned refineries.
IPMAN argued that completing the agreement would increase competition in the downstream petroleum market, improve product availability and ultimately reduce pump prices.
According to the association, expanding the number of technically competent operators in Nigeria’s refining sector would reduce reliance on imported petroleum products, improve supply stability and discourage monopolistic practices.
Okubowei urged NNPCL and its Group Chief Executive Officer, Bashir Bayo Ojulari, to conclude all outstanding processes required to operationalise the partnership.
He also called on the national oil company to explain the reasons for the delay and provide stakeholders with a clear timeline for implementing the project.
The marketers said restoring the Warri and Port Harcourt refineries would strengthen energy security, create jobs, attract fresh investment and stimulate economic growth.
They added that greater domestic refining capacity would complement ongoing reforms in the downstream sector by increasing competition and ensuring lower production costs are reflected in retail fuel prices.
NNPCL signed the Memorandum of Understanding with the two Chinese companies in Jiaxing City, China, as part of its strategy to restore and expand operations at the Warri and Port Harcourt refineries.
The twin developments underscore the government’s broader push to deepen competition and efficiency across Nigeria’s downstream petroleum industry. While the immediate focus is on ensuring lower international oil prices are reflected at filling stations, policymakers and industry operators agree that expanding domestic refining capacity remains critical to achieving sustainable price stability, improving energy security and reducing the country’s dependence on imported petroleum products.