NMDPRA targets zero fuel imports as downstream overhaul deepens

The Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Saidu Mohammed, has said that Nigeria is moving decisively towards ending its dependence on imported petroleum products as part of a sweeping overhaul of the downstream supply chain.

Mohammed stated that the long-standing model of heavy import reliance was being dismantled, with the country targeting a transition from 100 per cent importation to zero importation, before positioning itself as a net exporter of petroleum products.

The ACE disclosed this on Wednesday in Abuja while delivering a panel keynote address at the 2026 Nigerian International Energy Summit, themed “Driving Nigeria’s Downstream Renaissance: Regulation, Investment, and Market Confidence.”

This was as he revealed that the country has saved more than N6tn in fiscal and foreign exchange losses within the first nine months of 2025 as the country aggressively transitions from full dependence on imported petroleum products towards domestic refining and eventual export.

Mohammed said the savings were a direct outcome of Nigeria’s downstream reforms, including full deregulation of the sector, foreign exchange harmonisation, expanded gas utilisation, and the adoption of naira-based crude and product transactions.

“The cumulative impact of the full deregulation of the downstream sector, the 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 ₦6 trillion in the first nine months of 2025,” he said.

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

According to the NMDPRA chief, who was delivering his first public address since his appointment by President Bola Tinubu in December 2025, Nigeria is deliberately redefining a downstream supply chain long shaped by heavy dependence on imported 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.

He noted that 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.

“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 an investment where there is no clarity or predictability,” he added.

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,” he said.

Beyond liquid fuels, Mohammed said Nigeria was expanding gas-based alternatives as part of a broader strategy to become a continental energy hub.

“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 added that Nigeria had no reason not to export value-added gas products such as urea, ammonia, and fertilisers, rather than exporting raw resources.

The NMDPRA boss credited the downstream turnaround to the bold economic reforms of President Bola Tinubu, saying the sector was benefiting from renewed investor confidence.

“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 stressed that conserving foreign exchange was critical to macroeconomic stability.

“We should conserve our foreign exchange for certainty. Let the energy sector be the builder of foreign exchange, not the avenue for eroding it,” he added.

He assured investors that NMDPRA’s regulatory approach prioritised transparency, fairness, and commercial viability.

“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 noted.

He also highlighted reforms in gas market discipline through the implementation of the network code, ensuring structured contracting, guaranteed payments, and orderly gas transportation.

Mohammed acknowledged that Nigeria’s petroleum logistics infrastructure remained inefficient but said a refinery-centric pipeline strategy was being pursued to attract private investment.

“Products should move from refineries through secure pipelines, not by the most inefficient means. This ambition will attract investors, and funding must come from the private sector,” he said.

He emphasised that regulatory credibility remained Nigeria’s strongest currency.

“Investor confidence is built daily through credible institutions and consistent actions. As regulators, our credibility is Nigeria’s credibility,” Mohammed stated.

He concluded by calling for collaboration among government, investors, operators, and consumers to sustain the downstream transformation and position Nigeria as Africa’s energy leader. (Punch)