Concerns are mounting over growing monopolistic control in Nigeria’s oil and gas industry, as analysts and stakeholders blame persistent policy failures and regulatory inertia for stifling competition and discouraging investment in the sector.
Experts say the federal government’s inability to fully implement critical reforms—particularly those outlined in the Petroleum Industry Act (PIA)—has created a vacuum that favors a handful of dominant players, while marginal operators struggle to survive.
“Nigeria’s oil sector is increasingly becoming a playground for a few powerful interests,” said Dr. Raymond Ibe, an energy policy analyst. “The absence of transparent pricing, lack of infrastructure access, and weak enforcement of anti-competition rules are driving smaller companies out of the market.”
Industry insiders point to the downstream subsector, where recent fuel import liberalization has inadvertently tilted market power toward major importers and refinery owners. With the Nigerian National Petroleum Company Limited (NNPC Ltd) maintaining a dominant role in supply and pricing, private players say they are unable to compete on equal footing.
In the upstream segment, delayed licensing rounds, bureaucratic red tape, and uncertain fiscal terms have discouraged new entrants, leaving legacy operators in control of key assets and decisions.
Oil marketers under the Independent Petroleum Marketers Association of Nigeria (IPMAN) recently decried what they termed “institutional bias” that favors large companies in product allocation and access to foreign exchange.
“The current structure locks out genuine competition,” said IPMAN spokesperson Alhaji Yakubu Sule. “This isn’t just bad economics—it’s a recipe for inefficiency, corruption, and rising consumer prices.”
The Ministry of Petroleum Resources has yet to respond publicly to the growing criticism. However, sources within regulatory agencies acknowledge that gaps in policy implementation have hindered market liberalization efforts.
Energy economists warn that unless bold steps are taken to enforce transparency, level the playing field, and attract diverse investment, Nigeria risks deepening its dependency on monopolistic arrangements that stifle innovation and economic growth.
