Energy
Fair Competition Drives Stakeholders Brainstorm on Nigeria’s Downstream Oil Sector
Stakeholders and experts in Nigeria’s oil industry, while discussing Nigeria’s downstream sector, noted the need for stability, especially on the back of the recent deregulation of the sector in line with the Petroleum Industry Act (PIA).
In her opening remarks at a media roundtable on Nigeria’s downstream sector organised by Extractive 360 in Abuja, the Executive Director of the organisation, Juliet Ukanwosu, stressed that the downstream sector remains a vital pillar of Nigeria’s oil and gas industry.
Ukanwosu noted that this is because it directly influences the availability, pricing, and distribution of petroleum products, as well as impacting the daily lives of citizens and the broader economy.
“We have observed, in recent times, the Nigerian petroleum downstream sector is navigating a turbulent phase marked by a combination of opportunities and pressures.
“Since the removal of fuel subsidies, market forces have largely determined pump prices, triggering intense competition — often described as a price war — among operators. This has led to fluctuating product prices, sometimes creating uncertainty for both businesses and consumers.
“In addition, challenges such as high operating costs, irregular foreign exchange rates, import dependency for refined products, and infrastructural bottlenecks have added strain to the sector,” she added.
The executive director pointed out that on the positive side, the liberalisation policy has opened space for more private sector participation, investment in storage and distribution infrastructure, and conversations around refining capacity expansion.
Overall, she stated that the sector was in a state of adjustment, seeking stability and competitiveness amid shifting regulations, volatile market dynamics, and evolving public expectations.
According to her, the session was designed to provide some clarity and new insights which can be used to enlighten the general public, with experts that will provide context, trends, and current realities.
In her presentation, a legal expert, Olasubomi Chuku, highlighted threats to competitive markets, including monopolies, unstable regulatory environments as well as market ambiguities and poor consumer protection.
Despite the enactment of the PIA, she argued that the market is still fairly closed as the licensing process is not open to interrogation through the Freedom of Information (FOI) Act, plus the issue of rejected or delayed approvals to independent players, while petroleum processing is still largely run by the government.
She underlined the near or emerging monopoly in refinery and weak price competition due to limited participants as well as collusion among dominant market participants for price fixing and hoarding, saying that these remain threats to a competitive market and price competition.
She therefore urged journalists to demand transparency during licensing rounds, monitor and publish prices across petroleum products and states and establish a formal process of interaction with regulators and the legislature to track accountability.
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Besides, Chuku urged the media to expose anti-competitive practices and celebrate competitive measures as well as educate the public on the benefits of competition in the oil and gas industry.
In his intervention, an Oil and Gas Governance Consultant, Ademola Adigun, who gave an overview of the industry, highlighted the need to ensure a level playing field in the downstream sector.
Adigun argued that when the sector is driven by fair competition, it makes for a healthy market, and ensuring an investment-friendly environment.
He said: “The petroleum downstream market should be driven by competition, and the competition must be fair and well regulated by its regulators to provide the benefits to the consumers.”
Chevron Nigeria Limited (CNL), operator of the Nigerian National Petroleum Company Limited and CNL Joint Venture, has stressed the importance of strengthening the regulatory framework in the Nigerian oil and gas industry to enhance growth opportunities.
Chairman and Managing Director of Chevron companies in Nigeria and the Mid Africa Region, Jim Swartz, made this known at the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) Energy and Labour Summit (PEALS) in Abuja on Wednesday August 19, 2026.
Represented by Segun Kuteyi, Director of Operations and Chief Operating Officer, Chevron Nigeria and Mid Africa Region, Jim noted that Nigeria remains one of the world’s most resource-rich energy nations, with substantial oil reserves, abundant natural gas, a strategic location, and a skilled workforce, adding that these strengths position the country for sustained growth and competitiveness in a rapidly evolving global energy landscape.
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He remarked that resources alone are not enough to guarantee success and emphasized that what makes the difference is the environment in which investments, businesses, and people operate. “A predictable, transparent, and efficient regulatory framework builds confidence; and confidence attracts investment, drives innovation, creates jobs, and supports economic growth,’ he stated.
Jim emphasized that regulatory certainty could be a catalyst for investor commitments and noted that in Chevron, regulatory reforms in the industry continue to enable its growth opportunities post-Petroleum Industry Act (PIA) 2021, with key drivers being exploration and new discoveries, infill drilling and brownfield optimisation as well as monetisation and integrated developments
According to him, some of the company’s key achievements include the renewal and conversion of its Joint Venture and Deepwater leases; continued investment in exploration, asset and gas development, and monetisation; the recent Chevron’s acquisition of Deepwater block, Petroleum Prospecting License (PPL 2010); equity investments in recent announcements by Shell on Bonga Southwest/Aparo (BSWAP), and ExxonMobil on Owowo/Usan and the sustained social investments and community partnerships for over six decades.
While emphasizing the importance of safety, collaboration and human dimension in the Nigerian oil and gas industry, he stated that the industry challenges could be addressed through strengthening regulatory certainty, advancing transparency and accountability, driving investment across the value chain and promote collaboration across the industry, supporting innovation and digital transformation and building workforce capability and future-ready skills.
“At Chevron, we believe people are our greatest asset. No regulatory framework can fully succeed without a capable, motivated, and protected workforce. That is why forums such as PEALS are important: they bring government, labour, and industry together to align on shared goals and deepen mutual understanding,” he remarked.
Nigeria has mined over 4.6 billion barrels of crude oil from deep offshore assets worth over 5,000 tankers.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), revealed this on Tuesday Live on NTA hosted by Cyril Stober.
The Commission Chief Executive, Oritsemeyiwa Eyesan, represented by the Executive Commissioner, Development and Production of the NUPRC, Engineer Enorense Amadasu, asserted that the achievement was made possible by the Deep Offshore Oil and Gas Project Incentives (Tax Remission) Executive Order (EO) 2026 recently signed by President Bola Ahmed Tinubu.
She added that the EO has the potential not only to unlock $50bn in investments but can also create an additional one million barrels per day of crude oil and condensate from deep offshore fields.
Eyesan explained that the reform establishes a transparent, rules-based investment framework capable of supporting the next generation of deep offshore developments.
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She noted that presently, Nigeria produces about 1.7mbpd of crude oil and condensate but deep offshore accounts for just about 24 percent of total oil production and 19 percent of gas.
Eyesan pointed out that with Field Development Plans (FDPs) running into billions of dollars already approved by the NUPRC, the executive order will encourage IOCs to make quicker Final Investment Decisions (FIDs).
“So, where will these volumes be coming from? Nine of these projects have approved FDPs so the next step expected is the FID in the near to midterm.
The $10bn Bonga South will come in 2027 and within the next four to five years, we are expecting almost an additional one million barrels additional per day,” she stated.
According to Eyesan, the executive order also presents an opportunity for other sectors like the marine economy which will need to expand Nigeria’s logistics/marine base so the country can sustain the volume of deep offshore projects being expected.
“It aims to make Nigeria the regional hub for deep offshore projects,” Eyesan said.
Other benefits of the executive order as explained by CCE include: growth in reserves, technological/skills transfer and new jobs.
Brent crude closed above $90 per barrel on Monday as Iran threatened to launch a military offensive in the Strait of Hormuz if diplomatic efforts to end its war with the United States fail.
The benchmark Brent crude was quoted at $90.53 per barrel as of Monday evening, gaining $2.01, or 2.27 per cent, according to oilprice.com. US West Texas Intermediate crude also climbed to $84.25 per barrel, up $1.85, or 2.25 per cent.
According to Reuters, the rise followed renewed tensions around the strategic Strait of Hormuz after a senior Iranian official told the news agency that Tehran had shifted its policy from defensive to “fully offensive” because of a deadlock in efforts to secure a permanent end to the war.
The official said Iran was prepared to take military action in the Strait of Hormuz if diplomatic efforts failed. “Iranian entities must be prepared to escalate tensions in the Strait of Hormuz and wider region, as Iran will be ready to make decisions and take action on difficult decisions,” the official told Reuters.
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He added that Tehran would conduct a “timely and precise” military attack to break the United States naval blockade if diplomacy failed.
The development threatens to further disrupt tanker movements through Hormuz, a key global energy corridor, at a time when efforts to restore oil traffic through the waterway have stalled.
According to Reuters, progress towards peace talks and the resumption of oil tanker traffic through the Strait of Hormuz has ground to a halt, with neither side showing signs of moving towards an end to the conflict.
The latest escalation came on the day Iran and the United States were expected to reach a final agreement under a memorandum of understanding signed in June.
The June 17 memorandum provided a 60-day timeframe for Washington and Tehran to reach a broader agreement concerning Iran’s nuclear programme and US sanctions.
The interim agreement, which called for the “immediate and permanent termination of military operations on all fronts”, however, quickly collapsed over disagreements concerning control of the Strait of Hormuz.
The waterway, which is shared by Iran and Oman, is a major route for global energy supplies. It was reported that about a fifth of global oil and liquefied natural gas flowed through the strait before the war.
Tehran maintains that the June agreement gave it the right to manage the waterway, while Washington rejected that interpretation.
The dispute subsequently contributed to the resumption of hostilities, with Iran firing on vessels it said were attempting to sail through the strait using an unauthorised route.
US President Donald Trump subsequently declared on July 7 that the agreement was over.
The Iranian official told Reuters that Tehran had now given the United States only a short period to implement all the provisions of the agreement before further negotiations could take place.
“Within the short period of a few weeks set by Iran, all the agreement’s provisions must be implemented by the U.S. This is a precondition for further negotiations with the US,” the official said.
Mediators are expected to communicate Iran’s deadline to Washington and other regional countries. Iran is also separately negotiating with Oman over the management of the Strait of Hormuz, with Tehran saying the two countries are close to an agreement despite slow progress.
The situation was further complicated by Trump’s warning to Oman during a phone interview with Fox News on Monday. “If Oman gets in the way, we’ll bomb the shit out of them,” Trump said, according to Reuters.
Earlier, Trump said Iran should surrender, telling Fox News that Tehran “should put up the white flag of surrender”. The renewed threats have heightened concerns over the security of shipping through Hormuz and helped push crude prices higher on Monday.
The price movement also comes after oil had traded below the $80 mark earlier in the month amid expectations that tensions around the waterway could ease. Monday’s Brent price of $90.53 therefore represented a fresh rise above the $90 threshold, while WTI stood at $84.25 per barrel.
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