The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for its strategic regulatory oversight, which it says has attracted over $1.2 billion in modular refinery investments since 2022. The association described the NMDPRA’s reforms as a major catalyst for stability, innovation, and investor confidence in Nigeria’s downstream petroleum sector.
According to DAPPMAN’s Executive Secretary, Olufemi Adewole, the NMDPRA’s transparent licensing framework has not only facilitated increased private sector participation but also reduced incidents of fuel scarcity nationwide. Citing data from the NMDPRA Industry Brief (2024), Adewole said streamlined licensing processes and compliance enforcement have bolstered investor interest in modular refineries, an essential step toward strengthening local refining capacity and reducing Nigeria’s dependence on imported fuel.
“Under the leadership of Engr. Farouk Ahmed, the NMDPRA is driving unprecedented transformation in the downstream sector. Its firm, fair, and functional regulatory oversight has improved operational efficiency, enhanced product availability, and boosted investor confidence,” Adewole stated.
DAPPMAN highlighted several achievements of the NMDPRA that have reshaped the downstream landscape. Among these are:
Enhanced Fuel Supply Chain Management: Collaborative efforts between the NMDPRA, Nigerian National Petroleum Company Limited (NNPCL), and other stakeholders have significantly reduced incidents of fuel scarcity and ensured nationwide product availability.
Reduced Smuggling and Diversion: Stricter anti-smuggling measures have cut cross-border fuel diversion by 35%, according to the NNPC Security Report.
Improved Compliance and Fuel Quality: The Automated Downstream System (ADS) introduced by NMDPRA has enhanced real-time monitoring of product distribution, reducing hoarding and illegal sales. Fuel quality compliance at major depots now stands at 98%.
Boosted Investor Confidence: Regulatory predictability, coupled with the Petroleum Industry Act (PIA) 2021, has enabled long-term planning and encouraged market-driven policies, including price liberalization.
Adewole further noted that the NMDPRA’s stakeholder engagement strategies have built stronger relationships with industry players, aligning regulatory policies with market realities.
The $1.2 billion modular refinery investment is expected to play a significant role in boosting Nigeria’s local refining capacity. Industry experts believe that increased modular refining will reduce Nigeria’s reliance on imported fuel, ease forex pressure, and strengthen energy security.
Modular refineries, known for their faster deployment and lower capital requirements compared to conventional refineries, have become an attractive investment option, especially for private operators. With more of these facilities coming on stream, analysts project a reduction in fuel import bills and a potential decline in pump prices if crude feedstock is sourced locally.
DAPPMAN attributed much of the progress to the implementation of the Petroleum Industry Act, which has deregulated the downstream sector and promoted a competitive market. The Act empowered the NMDPRA to enforce market-driven policies, encourage transparency, and ensure strict compliance with operational standards.
Adewole reaffirmed DAPPMAN’s commitment to supporting the NMDPRA in achieving a sustainable energy market. “Our members will continue to partner with the NMDPRA to deliver world-class energy solutions and ensure Nigerians enjoy uninterrupted fuel supply,” he assured.
Industry analysts have urged the NMDPRA to sustain its reforms by ensuring that modular refineries receive consistent regulatory support and access to crude oil feedstock. They also recommended more strategic collaboration between the government and private operators to boost energy infrastructure and promote indigenous participation.
As Nigeria continues its journey toward energy self-sufficiency, stakeholders believe that with consistent policy implementation and regulatory efficiency, the country could become a regional refining hub in the coming years.