Human rights lawyer and activist Deji Adeyanju has criticized what he described as an emerging monopoly in Nigeria’s petroleum sector, blaming it for the recent increase in fuel prices across the country.
Adeyanju alleged that the dominance of a single major refinery operator is negatively affecting competition and contributing to higher pump prices. He argued that the current situation is placing additional economic strain on Nigerians already grappling with rising living costs.
His comments followed a fresh adjustment in petrol prices, which has sparked public concern and renewed debate over deregulation and market forces in the downstream oil sector. Motorists in several cities have reported paying higher rates at filling stations.
Adeyanju maintained that allowing one dominant player to control a significant share of refining and supply could undermine fair pricing. He described the development as harmful to consumers and called for policies that would encourage broader participation in the sector.
According to him, healthy competition is essential to stabilizing prices and protecting consumers from exploitation. He urged the federal government and regulatory authorities to ensure that no single entity wields excessive influence over fuel supply and pricing.
The Dangote Refinery, which commenced operations in recent months, was established to boost domestic refining capacity and reduce reliance on fuel imports. Supporters of the project have argued that increased local production will ultimately lower costs and enhance energy security.
However, critics have raised concerns about market concentration and pricing dynamics. They contend that without sufficient competition, the benefits of local refining may not fully translate into lower pump prices.
Industry analysts note that fuel pricing in Nigeria is influenced by multiple factors, including global crude oil prices, exchange rates, distribution costs, and government policies. They add that fluctuations in any of these variables can lead to price adjustments.
Regulatory authorities have repeatedly stated that the downstream sector operates within a deregulated framework, where prices are largely determined by market conditions. They have also emphasized their role in monitoring compliance with established guidelines.
Meanwhile, consumers continue to express frustration over the rising cost of petrol, which has a direct impact on transportation fares and the prices of goods and services. Labour unions and civil society groups have called for measures to cushion the effects on households.
Adeyanju reiterated his position that structural reforms are necessary to prevent what he termed monopolistic practices. He urged policymakers to create an enabling environment for multiple refiners and importers to operate competitively.
As discussions continue, stakeholders across the energy sector are expected to engage further on how best to balance investment incentives, market competition, and consumer protection.
The latest fuel price increase has once again brought attention to the complexities of Nigeria’s petroleum industry and the broader economic challenges facing the country.
