Nigeria’s refining boom faces growing monopoly concerns

Nigeria’s growing domestic refining capacity has sharply reduced petrol imports, but concerns are rising that market concentration could prevent consumers from enjoying the full benefits.

According to an Al Jazeera, researcher Hakeem Najimdeen said petrol imports have fallen from about 400,000 barrels daily in 2024 to roughly 83,000 barrels this year, driven partly by Dangote Refinery’s operations.

However, petrol prices have climbed from about N185 per litre before subsidy reforms to more than N1,000, increasing transport and production costs.

Najimdeen argued that insufficient competition could limit pressure on refiners to pass savings to consumers.

He called for stronger antimonopoly enforcement, transparent pricing, rehabilitation of state-owned refineries and incentives for smaller refiners to increase competition and reduce market concentration nationwide.