Downstream overhaul moving Nigeria to zero dependence on fuel importation – NMDPRA

Saidu Mohammed, the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced Nigeria’s transition from dependence on imported petroleum products.

According to Mohammed, the operationalisation of the Petroleum Industry Act has transformed Nigeria’s downstream into a fully liberalised market, reducing the perennial fuel scarcity and supply distortions that once plagued the economy.

The Authority Chief Executive stated this at the ongoing Nigerian International Energy Summit (NIES) in Abuja on Wednesday. He attributed the downstream turnaround to the bold economic reforms of President Bola Tinubu, saying the sector was benefiting from renewed investor confidence.

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According to him, the long-standing model of heavy import reliance was being dismantled, with the country targeting a transition from 100 percent importation to zero importation and positioning as a net exporter of petroleum products.

“The supply chain landscape of the sector has depended significantly on importation, and that is the story we want to change, from 100 per cent importation to zero importation, and then we start climbing towards exportation,” Mohammed said.

“Today, pricing in the downstream sector is increasingly driven by market fundamentals, and we are attaining the level of stability required to attract sustainable investment. There cannot be investment where there is no clarity or predictability.

“The downstream sector is enjoying a renaissance created by the bold economic reforms of this administration, and we will continue to leverage these reforms for sustained growth,” he said.

Mohammed also revealed that the cumulative impact of the full deregulation of the downstream sector, harmonisation of the forex market, the incentivisation of gas and the trading of crude and products in naira has reduced the fiscal and economic losses of importing petroleum products by over N6 trillion in the first nine months of 2025.

He added that the reforms were reversing decades of inefficiency that had defined Nigeria’s downstream petroleum industry.

Mohammed said Nigeria was now meeting a substantial portion of its domestic fuel demand locally, describing refinery revival as the backbone of the downstream renaissance. He confirmed that government-owned refineries were returning to operation, while new licences had been issued to private investors.

“We have made room for refineries. The NNPC refineries are coming back. We heard it directly from the NNPC CEO. Licences have also been issued to more refineries, and Nigeria has enough market space, not just domestically, but across West Africa and the entire continent.

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“The final evolution point is for Nigeria to become not just a regional, but a continental energy power. Gas is central to this ambition, for cleaner power, industrial development, transport fuels, fertilisers and manufacturing,” he stated.

He emphasized that the Authority was focused on prioritizing transparency, fairness and commercial viability through regulations, adding that markets flourish only when rules are clear, institutions are credible, and investors trust the system. “Regulation must add value, not become a blockage,” Mohammed said.

According to him, project approvals are now tied to clear economic viability and alignment with Nigeria’s strategic energy direction.

“We cannot license projects without understanding their commercial logic. Nigeria must have a clear plan for how its energy market opens and evolves,” he added.