Rainoil GMD Calls for Revival of Moribund Pettoleum Pipelines, Fair Products Pricing

Peter Uzoho

The Group Managing Director of Rainoil Limited, Dr. Gabriel Ogbechie, has emphasized the need for the revival of pipeline infrastructure and fair pricing of petroleum products to drive growth in Nigeria’s energy sector.

Ogbechie stated this while speaking at the Midstream/Downstream Transformation Debate at the Nigerian International Energy Summit (NIES) in Abuja, with the theme: Driving Domestic Value: Transforming Downstream Markets and Refining.

Providing solutions to challenges that have bedeviled the sector, Ogbechie highlighted the importance of robust pipeline systems in connecting petroleum products supply to demand, promoting industrial growth, and ensuring energy security.

He stressed that pipeline vandalism and theft must be addressed through intelligence-driven monitoring and stronger legal frameworks.

He noted that Nigeria has moved away from an era when fuel scarcity was a recurring national challenge, driven largely by non-functional refineries and total dependence on imported petroleum products.

According to him, for many years, Nigeria’s four state-owned refineries were largely dormant, forcing Africa’s largest oil producer to rely almost entirely on imports to meet domestic fuel demand.

“Thankfully, in the last two years, we have been privileged to witness the advent of the Dangote Refinery, which has been a blessing to the country and a game changer for the industry,” Ogbechie said.

He stressed that the downstream sector is currently experiencing significant disruption as it adjusts to a new operating reality.

While acknowledging the value added by the Dangote Refinery, Ogbechie said sustainable progress would depend on cooperation rather than competition between local refiners and downstream marketers.

“If oil is being produced locally, it is important that everyone prioritises what is produced locally,” he said, adding that issues of equity, transparency, and fairness must guide pricing decisions in the evolving market structure.

Ogbechie warned that unpredictable or inequitable pricing could distort the market and destroy value rather than optimise it.

He emphasised that pricing must be fair to all stakeholders, including consumers, and predictable enough to allow operators to plan and invest with confidence.

Beyond pricing, he identified product distribution as a major source of inefficiency and value erosion in the downstream sector.

Ogbechie criticised Nigeria’s heavy reliance on road transportation for fuel distribution, describing it as economically unsustainable and damaging to national infrastructure.

“It does not make sense to move petroleum products from Lagos to Sokoto by truck over a distance of more than 1,000 kilometres,” he said, noting that trucking large volumes of fuel across long distances increases costs, damages roads, and creates avoidable risks.

He reminded stakeholders that Nigeria already possesses an extensive network of pipelines linking refineries and major cities across the country, including routes from Port Harcourt to Aba, Enugu, and Makurdi; Kaduna to Jos, Gombe, Yola, and Kano; and Warri to Benin and further inland.

“This country is wired underground through pipelines. Some of us were privileged to see these pipelines work. We need to go back to it,” Ogbechie said.

He called for a renewed investment and operational focus on pipeline transportation to reduce reliance on trucks and move products over shorter distances.

Speaking on regulation, Ogbechie backed the stance of the industry regulator and Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Saidu Mohammed, who had earlier pledged to be “fair but firm.”

He argued that with the downstream market increasingly resembling an oligopoly, the regulator must act as a strong and impartial referee.

As founder of Rainoil Limited, Ogbechie has led the company’s expansion across Nigeria’s downstream value chain, with investments in storage depots, retail petrol stations, and LPG plants.

His call for pipeline infrastructure revival aligns with the company’s commitment to supporting national energy needs.