• We are compliant with price reduction, says IPMAN

• It’s pure business decision, says Dr. Yusuf

The Federal Competition and Consumer Protection Commission (FCCPC) may wield the big stick on oil marketers across the country following their reluctance to reduce petrol pump price in alignment with the falling global crude oil price.

The Commission, in a statement signed by its Director, Corporate Affairs, Ondaje Ijagwu, expressed concern over the outcome of its findings from surveillance of the downstream petroleum market suggesting undue exploitation of consumers.

The planned action, the Commission said, has become necessary after it observed that ins spite of a downward review of the gantry prices of petrol by domestic refiners, marketers, depot owners, and retail outlet operators only reflected the a negligible price reduction which are not commensurate with the steep fall in crude prices in the global market.

The FCCPC’s position may be right. This is because, following a ceasefire agreement between U.S. and Iran two weeks ago and the reopening of the Straits of Hormuz, crude oil prices have been on a steady decline, falling to $71.99 per barrel (Brent crude) and $69.23 per barrel (WTI) yesterday- a sharp drop from the peak of $120 per barrel in April, returning to the prices in the pre- US-Iran war era in February.

The global spike in crude prices led to local refiners and marketers raising pump prices swiftly across the country, with petrol price climbing to between N1,350 to N1,500 and diesel selling N2,000 as hostilities intensified in the gulf between April and May. In February, petrol averaged between N800 and N900 per litre at the retail pumps. Presently, notwithstanding the global price fall of crude oil, petrol is still sold at average of N1,200 while some local refiners fixed between N1,025 and N1,075 as their gantry prices.

The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, explained that while the Commission does not regulate or approve petroleum prices in a deregulated downstream market, however, it (the Commission) has a responsibility under the Federal Competition and Consumer Protection Act 2018, to promote competitive markets, prevent anti-competitive conduct and protect consumers from unfair, deceptive and exploitative business practices.

“We are concerned that while dealers often respond swiftly by hiking pump prices whenever crude prices rise, it is curious that it is taking forever for consumers to benefit significantly when crude prices fall. Competitive markets must work fairly in both directions.

“Though recognising that domestic prices are influenced by a range of commercial and market factors (including refining costs, foreign exchange movements, logistics, financing and distribution expenses), the Commission however expects competitive market dynamics to have eased the swift transmission of resulting cost efficiencies to consumers.

“Market liberalisation does not diminish businesses’ obligations to compete fairly or consumers’ right to fair treatment. Where credible evidence indicates conduct that undermines competition, exploits consumers or otherwise contravenes the Federal Competition and Consumer Protection Act, the Commission will investigate and take appropriate enforcement action,” Bello explained.

The National President, Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maiganda, however said marketers were already complying with the price reduction. He explained that marketers are responded to the price cut by the same percentage cut in price from the refiners.

“You have to know that this price cut is in batches. So as they are reducing, we too are reducing. When Dangote Refinery reduced by N50 per litre, we reflected the same N50 reduction in our pump price; any amount of money that is reduced from the ex gantry price, that is the same amount money that we are reduce on our pump price,” Maigandi said.

He challenged the FCCPC to take a survey of IPMAN stations and verify the level of compliance of its members. “We must, the compliance is must because if you don’t comply, nobody will come and patronise your product. Nobody will see a cheaper product and go and buy it at a higher cost. Actually, all our marketers are complying. I have always insisted that we like the reduction because that reduction itself makes for more volume of petrol to be sold,” Maigandi explained.

Still, some top operators in the oil marketing segment accuse the FCCPC of double standard in the prevailing situation. Top officials of other marketing associations, when asked to comment on the Commission’s position and threats of sanction against erring marketers, said it smacks of double standard on the commission’s part to say it would sanction marketers.

The top officials, who pleaded to remain anonymous after being pressured to speak to the matter, said: “We await their sanctions. Where was the FCCPC when we were crying out that we were being demarketed by local refiners? The FCCPC didn’t see what the refiner was doing at that time as anti-competitive conduct for it to intervene but now it wants to intervene. Is that not double standards?” the official retorted.

The Chief Executive Officer, Center for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, agreed that the FCCPC may intervene irrespective of the sector being deregulated.

“Well, if there are obvious cases of corruption, for instance, or if people who have so strong market power are trying to be exploitative, the FCCPC can intervene because the competition commission has broad powers to address issues of price commotion, issues of abuse of monopoly powers, issues of abuse of market powers. That is their mandate.

“But they must establish that such situation exists before they can begin to intervene. You have many players in the downstream. So there is a framework that will allow competition to happen,” Yusuf argued.

But much as the FCCPC has the statutory power to prevent anti competition and protect consumers, Yusuf argued that it will be a difficult task to compel marketers on pricing because it is purely a business decision.

“If you have a stock and the price of that stock went up, even though you bought it at a lower price, you are going to price it at a replacement cost. That is normal business sense. If you finish selling it, at what price are you going to replace it? That is why you determine at what price you will sell it. So it is pure business sense. So it is a difficult thing to compel businesses on certain issues,” Dr. Yusuf said.

According to the CPPE boss, generally, prices are sticky downwards. This implies that when it’s time for price reduction, it comes very slowly and reluctantly.

“That is the general behaviour of many businesses. It will take some significant competitive pressure to bring down the price. But the flip side is that if it’s a case of increasing price, it will be instant. Yes, it will increase instantaneously. However, that is a typical business behaviour, because if they want to replenish, they are going to replace at a higher cost. So they are looking at replacement costs to determine the price.

“The business argument of many of these marketers is that they have an old stock, which they bought at a high price. Therefore, until they exhaust the old stock, they will not be able to reduce the price significantly. That it is when they now buy a new stock at a lower price, then they will sell at lower price,” he said.

Bello encouraged consumers to continue reporting suspected anti-competitive conduct, misleading pricing practices and other forms of unfair market behaviour through the Commission’s established complaint channels.

• Targets over $4b annual forex earnings

The Dangote Group has reinforced its long-standing partnership with the Africa Finance Corporation (AFC) through the signing of a $600 million loan facility to support the expansion of its fertiliser production capacity, an important milestone in advancing food security across Nigeria and the African continent.

The financing, extended to GreenView Fertilizer Corporation (Greenview), the Dangote Fertiliser Holding Company, will partly fund the expansion of urea production capacity in Nigeria as well as the development of a new fertiliser plant in Ethiopia.

This investment forms a key component of the Dangote Group’s broader $7 billion fertiliser expansion programme. The initiative is expected to increase production capacity in Nigeria from three million metric tonnes per annum (MTPA) to nine MTPA, while also supporting the establishment of a new three MTPA urea plant in Ethiopia.
Upon completion, the programme is expected to significantly boost Africa’s fertiliser output, strengthen regional food security, enhance agricultural productivity and reduce dependence on imports.

The facility underscores AFC’s strong confidence in Dangote Group’s vision to drive industrial growth and agricultural transformation through large-scale infrastructure investments. The funds will primarily support the ongoing expansion of the Dangote Fertiliser Plant at Ibeju-Lekki, Lagos, one of the largest granulated urea fertiliser complexes in the world.

The expansion is expected to substantially scale up production, improve supply chain efficiency, and ensure consistent availability of high-quality fertilisers to farmers across the continent. It will also contribute to price stability, reduce import dependency, and enhance crop yields, strengthening Africa’s overall food security framework.

Speaking on the development, President of Dangote Group, Aliko Dangote, said the expansion would generate significant foreign exchange earnings for the country.
“This investment positions us to deliver over $4 billion annually in fertiliser exports within the next three years. It represents a major contribution to Nigeria’s foreign exchange earnings and underscores our commitment to national economic growth. Our growth vision is not in isolation, we are building alongside strategic African partners like AFC and other institutions committed to the continent’s progress,” he explained.
President and CEO of AFC, Samaila Zubairu, highlighted the strategic importance of the deal.

“This transaction reflects AFC’s capital recycling model in action. Following the successful repayment of our earlier investment in Dangote Industries Limited, we are reinvesting and doubling that capital into Dangote Group’s next growth phase.

“By supporting the expansion of Dangote Fertilizer, AFC is backing a proven African industrial leader whose investments will strengthen food security, reduce import dependence, and create long-term economic value across the continent.”

This development builds on AFC’s strong track record of successful investments and exits across Africa, including projects in renewable energy, port infrastructure, digital connectivity, and industrial platforms.

The Dangote Fertiliser Plant currently plays a critical role in meeting domestic demand while exporting to international markets, thereby generating valuable foreign exchange for the country. With this new phase of expansion, the company is poised to consolidate its leadership position in the global fertiliser market while advancing Africa’s agricultural and economic resilience.

Nigeria’s Value Added Tax (VAT) collections rose to N2.42 trillion in the first quarter of this year, National Bureau of Statistics (NBS) data have shown.

The figure represents 17.06 per cent increase from the N2.07 trillion generated in the corresponding period of 2025.

The strong VAT performance recorded in the first quarter of 2026 reflects sustained economic activity across key sectors such as manufacturing, telecommunications, and mining.

The increase in VAT collections suggests that Nigeria’s non-oil revenue base continues to expand, providing additional resources for government spending and fiscal management.

The NBS also reported that VAT revenue grew by 9.98 per cent on a quarter-on-quarter basis from N2.20 trillion recorded in the fourth quarter of 2025, reflecting improved tax collections across key sectors of the economy.

Of the total VAT generated during the quarter, local payments accounted for N1.11 trillion, foreign VAT payments contributed N830.47 billion, while import VAT stood at N477.55 billion.

According to the NBS, several sectors recorded significant growth in their Value Added Tax (VAT) contributions during the first quarter of 2026, reflecting varying levels of economic activity across the country.

On a quarter-on-quarter basis, the strongest growth was recorded in activities of households as employers and undifferentiated goods-and-services-producing activities for own use, which surged by 74.36 per cent.

This was followed by the arts, entertainment and recreation sector, which expanded by 20.91 per cent, while the manufacturing sector posted a robust 12.82 per cent increase in VAT contributions.

Sectoral performance shows that education sector recorded the sharpest drop, with VAT contributions falling by 31.96 per cent. This was closely followed by public administration and defence, including compulsory social security, which declined by 31.38 per cent, while activities of extraterritorial organisations and bodies decreased by 29.89 per cent.

In terms of overall contribution to VAT revenue, the manufacturing sector maintained its position as the largest contributor, accounting for 29.75% of total collections in the first quarter.

The information and communication sector followed with 20.61%, underscoring the growing importance of digital and telecommunications services to the economy. Mining and quarrying ranked third, contributing 12.32 per cent of total VAT revenue.

At the lower end of the spectrum, activities of households as employers and undifferentiated goods-and-services-producing activities for own use accounted for just 0.01 per cent of total VAT collections.

Activities of extraterritorial organisations and bodies contributed 0.02 per cent, while water supply, sewerage, waste management and remediation activities made up 0.06 per cent.

The figures highlight the continued dominance of manufacturing, telecommunications, and extractive industries in Nigeria’s VAT revenue profile, while also reflecting the uneven pace of growth across different sectors of the economy.

The NBS added that overall VAT collections in Q1 2026 increased by 17.06 per cent compared with the same period of 2025.

VAT has emerged as one of Nigeria’s most important sources of non-oil revenue as the government intensifies efforts to diversify its income base and reduce dependence on crude oil earnings.