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HomeHeadlineNigerian Fuels Market, Post PIB

Nigerian Fuels Market, Post PIB


Even with sound financial status the future requires unequal stride companies with negative cashflow would require 2× the effort to covert risk


By Isiyaku Abdullahi 

The World of today

…is global, driven by energy innovations and changing demand patterns


  • Global and regional market dynamics, trends, and the energy transition
  • NOC strategies and lessons learned from country transformations
  • NNPC Limited portfolio optimization


The global competitive landscape will continue to tilt towards investment destinations with favourable ROIs; the PIA 2021 Presents  such a unique opportunity for Nigeria

PIA Value Propositions

Win – Win
Win – Win


  1. Promote economic growth through increased investments to drive oil and gas production
  1. Establish an effective and predictable acreage management system
  2. Promote frontier exploration
  3. Create an effective and efficient midstream and downstream sector
  4. Investments in midstream gas infrastructure to increase gas-based power generation and industries
  5. Enhance the regulatory framework and enshrine transparency & accountability
  1. Transform NNPC in a viable commercially based and self-sustaining national company
  2. Promote improved environmental compliance measures
  3. Assist host communities in petroleum operation areas to achieve their aspirations


Petroleum Products Pricing in PIA

205 (1)            Subject to the provisions of this Section, wholesale and retail prices of petroleum products shall be based on unrestricted free market pricing conditions.

205. Pricing regime and
power to
regulate tariffs

205(2) Where the Authority determines that a particular licenced activity is a monopoly service or a service by an excessively dominant supplier, the Authority shall have the power to regulate the tariffs and prices charged by the respective licensee in respect of the activities in a manner consistent with the Authority’s duties under this Act and with the pricing principles set out in section 207 of this Act.

207. pricing principles in
relation to petroleum products

207 Where pursuant to subsection 205(2), the Authority regulates the tariffs and prices of a licensee, the Authority shall allow the seller to recover reasonably and prudently incurred costs, including a reasonable return on the capital invested in the business.

317. Transitional and Savings Provisions

317(6) From the effective date, the Government on behalf of the Federation may request the services of NNPC Limited as supplier of last resort to ensure adequate supply and distribution of Premium Motor Spirit (PMS) for a period not exceeding six (6) months. All associated costs shall be for the account of the federation.

Way Forward

 Crude oil market will continue to improve as the world recovers from the impact of COVID-19Products market will continue to evolve as the global transition to cleaner fuels continue to gain momentum

However, Africa and Nigeria in particular will tilt towards energy transformationleveraging on huge gas resources ahead of full transition

Shifting demand patterns in favour lower cost lower carbon will require significant investments in infrastructure

Full deregulation may push an accelerated switching to CNG & LPG, subject to global energy prices trend in the near term.

PIA presents a unique opportunity for investments across the value chain

Thank you for your attention 


Abdullahi Is Managing Director PPMC.
He made this submission at the Oil Trading and Logistic Expo 2021
At Lagos Oriental Hotel, Victoria Iland, on 27th October 2021.




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