Following a productive meeting with President Bola Tinubu at his Lagos residence on Sunday, December 28, 2025, the Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, provided a comprehensive update on the nation’s energy sector. Amidst a significant shift in petrol prices and major pipeline progress, Ojulari reassured Nigerians that the current market volatility is a precursor to long-term stability and energy security.
The Consumer Win: Petrol Prices Hit New Lows
Ojulari highlighted that the “price war” currently seen at filling stations is a direct result of the transition from a monopoly to a competitive, domestic-refining market.
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The “Dangote Effect”: With the Dangote Refinery ramping up to its 650,000 b/d capacity and NNPC refineries undergoing rehabilitation, supply has surged.
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Price Drop: Petrol prices have fallen from over ₦1,200 per litre in late 2024 to as low as ₦739 per litre in December 2025 at certain outlets.
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Market Philosophy: Ojulari emphasized that under the Petroleum Industry Act (PIA), the NNPC is now a commercial entity rather than a regulator, allowing “willing-buyer, willing-seller” forces to drive down costs for the average Nigerian.
Infrastructure Breakthrough: The AKK Pipeline
A major highlight of the briefing was the progress on the 614-km Ajaokuta-Kaduna-Kano (AKK) gas pipeline, a project critical for industrializing Northern Nigeria.
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River Niger Crossing: Ojulari confirmed the successful completion of the main line, including the technically difficult River Niger crossing which had stalled for years.
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2026 Activation: With the main line welded, NNPC will begin connecting local industries in early 2026.
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Economic Impact: The pipeline is expected to power fertilizer plants, gas-based industries, and power stations across Abuja, Kaduna, and Kano.
Upstream Gains and Production Targets
Nigeria’s oil and gas production has seen a steady climb throughout 2025, according to the GCEO:
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Crude Oil: Output has risen from 1.5 million b/d to 1.7 million b/d this year.
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Natural Gas: Production now exceeds 7 billion standard cubic feet per day (scf/d).
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2026 Goal: The NNPC is targeting a production milestone of 1.8 million b/d in 2026, supported by structural changes within the organization and improved security in the Niger Delta.
“Reality is a great thing—to have a major refinery in Nigeria, supplying West Africa and other parts of the world. The question now is, how do we ensure that market forces stabilize so that everyone can be okay.” — Bayo Ojulari, GCEO, NNPC Ltd
