Ojulari: Competition in Downstream Petroleum Sector Will Benefit Consumers

·    Oil output hits 1.7mbpd in 2025, gas rises above 7bcf/day

·    Company targets 1.8mbpd in 2026, eyes $30bn investment by 2030

·    Reiterates Tinubu’s commitment to raise crude oil production to 2mbpd by 2027

Deji Elumoye in Abuja

Group Chief Executive Officer of Nigerian National Petroleum Company (NNPC) Limited, Bayo Ojulari, on Sunday assured Nigerians that intensifying competition within the downstream petroleum sector will, over time, translate into tangible gains for consumers, despite the transitional pressures currently reshaping the market.

Speaking with newsmen after a meeting with President Bola Tinubu at his Ikoyi-Lagos residence, Ojulari, who described the market pressure as unavoidable, said the shift towards a fully competitive, willing-buyer, willing-seller market framework was expected to generate initial frictions, but would ultimately stabilise over time.

He said, “At the end of the day, Nigerians on the streets are going to be the beneficiaries. Where there is healthy competition, the buyers are the ultimate beneficiaries.”

The NNPCL boss said his visit was to update the president on the company’s year-end performance, while also presenting its strategic focus for 2026. He said the visit further provided an opportunity to acknowledge the president’s backing for the continuing reforms within the NNPCL.

According to him, “I came to update Mr President about the end-of-2025 performance of NNPC and to discuss our strategic priorities for 2026.

“It is also to thank Mr President for the inspiration he has given to the new NNPC management and board through this very challenging period of transformation.”

He described the reform of NNPCL as a difficult but necessary process, stating that presidential backing has been critical to the progress recorded so far.

On output levels, Ojulari said the company achieved notable improvements in 2025 when compared with its production performance in the preceding year.

He stated, “Last year, we were producing about 1.5 million barrels per day. This year, we are getting to over 1.7 million barrels per day in terms of oil production.”

He added that gas output also rose significantly within the same period.

Ojulari said, “Our gas production increased from about 6.5 billion standard cubic feet per day to over 7 billion standard cubic feet per day. Those improvements are underpinned by very structural changes within the organisation.”

He also highlighted progress on the Ajaokuta–Kaduna–Kano Gas Pipeline (AKK), describing it as one of the most important milestones of the year.

“We successfully completed the welding of the main line of the AKK. We were able to cross the River Niger, which had been a struggle for many years,” he stated.

He emphasised that the completion of the main line would allow connections to begin early next year, unlocking gas supply to large parts of northern Nigeria.

Ojulari said, “By completing the main line, we can now begin to make all the connections in the early part of next year. That brings gas in its full form to the northern part of Nigeria.”

The NNPCL boss listed Kaduna, Kano, Ajaokuta and Abuja as major beneficiaries, adding that gas availability would drive industrialisation.

“We will begin to see industrial parks, gas-based industries, fertiliser plants and power generation,” he said.

Projecting ahead of 2026, Ojulari said increasing production would remain the company’s top priority, stressing that it requires deliberate efforts to attract investment.

“When we say increasing production, it sounds simple, but there is a lot that goes into it. It means attracting the right investment, whether in oil or gas,” he said.

He disclosed that NNPC was targeting at least 1.8 million barrels per day next year, while pushing gas production even higher.

Ojulari stated that the company expected more final investment decisions and was reviewing its asset portfolio to unlock value.

He said Tinubu commended the management and board for the early gains, but reminded them of long-term targets, saying, “Mr President charged us with driving his performance aspiration, he reminded us of the target of attracting over $30 billion in additional investment by 2030.”

He added that Tinubu also reiterated the goal of raising crude oil production to two million barrels per day by 2027.

On concerns about downstream pricing and supply, the NNPC chief said Nigerians must understand the structural changes introduced by the Petroleum Industry Act (PIA), “The PIA did something fundamental. It separated regulation from business.”

According to him, regulatory responsibilities now rest with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), while NNPC operates strictly as a commercial entity.

“Post-PIA, NNPC is not a regulator. We are a CAMA company that must compete profitably,” he said, adding that NNPC no longer receives federation allocations.

On supply, Ojulari said NNPC remained the supplier of last resort and was working with all key downstream players, including Dangote Refinery, to ensure availability of petroleum products.

He acknowledged the current tension in the market, but insisted it was temporary, saying, “Competitiveness is not easy, we are in the early stages of a willing buyer-willing seller market.

“By the time you have a refinery like Dangote in-country, which we did not have before, the market will be impacted.”

Describing domestic refining as a positive development, Ojulari said Nigeria must collectively manage the transition.

He stated, “It is a great thing to have a major refinery in Nigeria supplying West Africa and other parts of the world. What we need to do is to walk through this reality together so that the market forces can stabilise and everyone can be okay.”

He expressed confidence that, with sustained reforms and stakeholders’ cooperation, the benefits of competition would become clearer to ordinary Nigerians in the months ahead.