A growing number of oil marketers are rebranding their filling stations and removing the Nigerian National Petroleum Company Limited (NNPCL) logo as they abandon franchise deals amid intense price competition in the downstream petroleum sector.
Investigations reveal that many station owners, particularly in Lagos, are considering breaking ties with NNPCL following the significant drop in fuel prices driven by the $20 billion Dangote Petroleum Refinery in Lekki.
Already, some filling stations previously operating under the NNPCL brand—such as those located along the Lagos-Ibadan Expressway and in Ibafo—have rebranded, signaling a shift towards cheaper product sources.
With Nigeria’s fuel market now fully deregulated, independent marketers are prioritizing cost-effective sourcing to maintain profitability and increase sales. Many former NNPCL-affiliated stations are now aligning with private oil marketers offering more competitive rates.
Industry sources indicate that this trend is fueled by the reduced loading costs of Premium Motor Spirit (PMS) from the Dangote refinery, which now undercuts the landing price of imported petrol. As a result, more dealers are expected to exit NNPCL partnerships in favor of independent branding.
Speaking on the development, Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed that many marketers are rethinking their affiliations as NNPCL is no longer the dominant fuel supplier.
“Marketers previously sought NNPCL franchise deals to secure fuel supply, but with the emergence of Dangote Refinery and other competitive sources, they are opting for cheaper alternatives,” Ukadike explained.
The shift has been further confirmed by petroleum analyst Olatide Jeremiah, who noted that NNPCL had internally subsidized fuel sales to stabilize prices before Dangote’s refinery entered the market. However, with Dangote now selling at competitive rates to all buyers, independent marketers no longer see the benefit of maintaining costly NNPCL franchise licenses.
While attempts to get a response from NNPCL spokesperson Femi Soneye were unsuccessful, industry insiders suggest that marketers are simply following market dynamics. The Lagos State Chairman of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Akinola Ogunyolemi, emphasized that most stations carrying the NNPCL logo were privately owned and had the freedom to switch affiliations based on better business terms.
The ongoing price war between NNPCL, Dangote, and private importers has intensified in recent weeks, leading to further fuel price cuts. Dangote Refinery recently announced a reduction in its ex-depot petrol price from ₦950 to ₦890 per liter, citing favorable global market conditions and declining crude oil prices.
Market analysts predict that the battle for dominance in Nigeria’s fuel supply chain will continue, with more marketers likely to defect from NNPCL in search of better margins and stable supply chains.
