The Presidency has confirmed that President Bola Tinubu will not intervene in the ongoing fuel price dispute between the Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL). This clarification was made by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, during a briefing at the Presidential Villa in Abuja on Wednesday.
According to Onanuga, both the NNPCL and Dangote Refinery operate independently within a deregulated market, and any issues between the two entities are not within the purview of government intervention. He further explained that under the Petroleum Industry Act (PIA), NNPCL, despite being government-owned, functions as an autonomous limited liability company.
Onanuga stated, “The PMS (Premium Motor Spirit) field, the PMS regime, has been deregulated. Dangote is a private company. NNPCL is a limited liability company despite being owned by the federal government, state, and local councils. They operate independently and are free to set their own prices.”
He also pointed out that if a price war emerges between the two, the consumer stands to benefit as private importers may bring in fuel at lower prices, which would drive competition.
Meanwhile, the government is not focusing on the current pricing issues but instead prioritizing the promotion of alternative energy solutions like Compressed Natural Gas (CNG). Onanuga highlighted that the government is committed to providing cheaper energy options for Nigerians, with CNG costing around N230 per litre equivalent, compared to the current PMS price of approximately N850 per litre.
“The government aims to ensure Nigerians have choices. If you don’t want to use PMS, you can opt for CNG,” Onanuga said, adding that plans are in place to subsidize vehicle conversions to CNG to make it more affordable for both private owners and commercial transporters. The government is targeting about one million vehicles running on CNG to help bring down transportation costs.
Onanuga also encouraged states to develop urban transport systems to further reduce transportation expenses across the country. Currently, Lagos is the only state with an organized urban transport system, but the government hopes to replicate similar systems in cities like Ibadan, Kaduna, and Kano.
