Several oil marketers in Nigeria have begun rebranding their filling stations by removing the Nigerian National Petroleum Company Limited (NNPCL) logo, signaling a shift in franchise agreements amid intensified competition in the downstream oil sector.
The move comes as the $20 billion Dangote Petroleum Refinery significantly slashes its ex-depot price for Premium Motor Spirit (PMS), forcing marketers to seek cheaper alternatives to maximize profit margins.
Investigations revealed that filling stations along the Lagos-Ibadan Expressway, particularly in Wawa and Ibafo, have already dropped the NNPCL brand, while many others—especially in Lagos—are considering the change. The transition is largely driven by Dangote Refinery’s recent reduction in petrol prices from ₦950 to ₦890 per litre, making its products more attractive than imported alternatives.
The deregulation of Nigeria’s downstream oil sector has led to fierce competition among marketers, pushing independent dealers to reconsider franchise agreements with NNPCL. Many are now aligning with private brands such as MRS, which offer more competitive pricing.
Confirming this trend, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, stated that marketers are adapting to the evolving market dynamics. “There was a time when NNPCL was the sole distributor and importer of petrol, which led many marketers to franchise their stations under the brand. However, with new players in the market offering better rates, many are switching to other brands,” he said.
Industry experts have linked the shift to the increasing preference for Dangote Refinery’s locally refined products, which are priced lower than imported petrol. The inability of NNPCL to secure a pricing agreement with the refinery has further fueled the transition.
Petroleum industry analyst Olatide Jeremiah explained that marketers previously leveraged NNPCL’s franchise model to secure cheaper products when the company was the dominant importer. However, with Dangote offering a more cost-effective alternative, the franchise model is losing appeal.
“NNPCL was internally subsidizing its petrol sales, making it attractive for marketers to buy at lower rates. But with Dangote now supplying directly at competitive prices, marketers are re-evaluating their options,” Jeremiah said.
Further findings indicate that the price war between Dangote Refinery, NNPCL, and private importers has intensified in recent weeks. Some industry sources claim that independent marketers are exploring cheaper fuel imports, creating additional competition for Dangote’s refined products.
Meanwhile, the Chairman of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) in Lagos State, Akinola Ogunyolemi, clarified that most of the affected filling stations are not owned by NNPCL. According to him, “These outlets belong to private owners who enter franchise agreements with NNPCL. If the contract expires or a better offer arises, they rebrand under a new name.”
With the current price dynamics, more marketers are expected to abandon the NNPCL franchise in pursuit of lower-cost fuel sources, as industry experts predict continued competition in the downstream sector.
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