The Independent Petroleum Marketers Association of Nigeria (IPMAN) has leveled serious allegations against the Nigerian National Petroleum Company Limited (NNPCL), claiming the state oil company is encouraging monopoly in Nigeria's oil and gas sector.

IPMAN's accusations stem from what they describe as continuous delays and uncertainty surrounding the rehabilitation of the country's three major refineries in Port Harcourt, Warri, and Kaduna.

Speaking in an interview, IPMAN spokesperson Chinedu Ukadike emphasized that functional NNPCL refineries would provide necessary competition to the Dangote Refinery, potentially resulting in more competitive fuel prices for Nigerian consumers.

"NNPCL refineries are not working. We have the president declare an emergency in these refineries. It is NNPCL that is encouraging monopoly, not Dangote Refinery. If NNPCL refineries are producing petroleum products, it will checkmate Dangote Refinery, with more competitive petroleum product prices for Nigerians," Ukadike stated.

Refinery Rehabilitation Concerns

The comments follow NNPCL's recent announcement regarding the shutdown of the Port Harcourt Refining Company (PHRC) for maintenance without specifying when operations would resume.

This development has reignited debates about the viability of both the Port Harcourt and Warri refineries, which underwent rehabilitation in November and December 2024 at a reported cost exceeding $1.5 billion.

IPMAN's spokesperson called on the president to declare an emergency regarding the state-owned refineries, suggesting that their non-operational status is creating an environment that favors monopolistic practices in the petroleum products market.

The association's concerns highlight ongoing challenges in Nigeria's downstream petroleum sector, where domestic refining capacity has remained a critical issue despite the country's status as a major oil producer.

Industry observers note that functional domestic refineries would reduce Nigeria's dependence on imported petroleum products and potentially stabilize fuel prices, which have been a significant economic concern for citizens and businesses alike.

The NNPCL has yet to issue an official response to IPMAN's allegations regarding monopolistic practices in the sector.