The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on President Bola Ahmed Tinubu to urgently intervene in what it described as a growing “cold war” in the downstream petroleum sector involving the Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
PETROAN made the call in a statement issued in Abuja by its National President, Dr. Billy Gillis-Harry, following what it said was an escalating price war between petroleum product importers and the management of the Dangote Refinery.
According to the association, public allegations and verbal attacks allegedly directed at the leadership of the NMDPRA by the President of Dangote Group, Alhaji Aliko Dangote, have the potential to erode confidence in Nigeria’s regulatory institutions and discourage foreign investment in the downstream sector.
At an Emergency Ordinary National General Meeting held on Monday, PETROAN said it passed a vote of confidence on the leadership of the NMDPRA under its Chief Executive Officer, Engr. Farouk Ahmed. The association attributed its decision to what it described as innovative reforms, strategic governance, and regulatory clarity introduced by the authority, which it said have improved transparency, operational efficiency, and healthy competition in the sector.
PETROAN noted that the current regulatory framework has strengthened market discipline, encouraged fair play among operators, and contributed to a more stable and competitive downstream environment that ultimately benefits consumers and the national economy.
The association also condemned negative public statements allegedly made against Nigeria’s national refineries, warning that running down another entity’s business, regardless of competition, violates sound business ethics and undermines investor confidence.
In a strong warning, PETROAN condemned the announcement or pronouncement of petroleum product prices by any individual, corporate body, or agency, describing such actions as contrary to the provisions of the Petroleum Industry Act (PIA) 2021. It cited Section 205(1) of the Act, which stipulates that wholesale and retail prices of petroleum products should be determined by unrestricted free market conditions, subject only to limited regulatory oversight to prevent monopolistic practices.
PETROAN maintained that Nigeria’s four refineries are “purchase-worthy” and insisted that the downstream petroleum sector remains business-friendly and attractive to both local and foreign investors.
The association further expressed concern over unresolved disputes involving the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) in relation to the Dangote Refinery. It warned that failure to resolve these issues, alongside the ongoing price war, could result in supply chain disruptions, artificial scarcity, job losses, weakened investor confidence, regulatory instability, and unhealthy price manipulation.
PETROAN cautioned that prolonged conflict among key stakeholders could expose the sector to monopolisation risks, reduced competition, higher operational uncertainty for retail outlet owners, and unstable pricing regimes that would ultimately hurt consumers and the wider economy.
The association argued that only constructive negotiation and fair commercial engagement would encourage importers to patronise local refineries, stressing that aggressive price-cutting strategies executed below cost were unsustainable and damaging to long-term sector stability.
PETROAN also urged the Nigerian National Petroleum Company Limited (NNPCL), under its Group Chief Executive Officer, Engr. Bayo Ojulari, to fast-track the engagement of credible private-sector partners for the rehabilitation, management, or co-ownership of national refineries, saying this would help restore confidence and demonstrate their commercial viability.
Dr. Gillis-Harry therefore called on President Tinubu to intervene decisively to resolve existing and emerging disputes in the downstream sector, promote dialogue over confrontation, uphold the provisions of the PIA, ensure fair competition, and restore stability and investor confidence in the industry.
The statement was signed by PETROAN’s National Public Relations Officer, Dr. Joseph Obele.
