The Federal Government of Nigeria reported that within the first nine months of 2025, the country had gained an estimated ₦6 trillion from reforms in the downstream petroleum sector, citing the effects of fuel market liberalization and decreased reliance on imports.
At the current Nigerian International Energy Summit (NIES) in Abuja, the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) revealed this, pointing out that the nation had suffered severe economic losses due to decades of heavy petroleum product imports.
Engr. Saidu Mohammed, the Chief Executive of the Authority, stated during the summit that the government is focusing on domestic refining and aiming to source all of Nigeria’s petroleum product needs domestically.
“Inadequate infrastructure and suboptimal supply chains have been associated with the downstream sector for decades,” Mohammed stated. “That story is evolving. The downstream is progressively achieving the stability needed to draw investment and is becoming more market-driven.
According to him, Nigeria, which has previously relied solely on imported petroleum products, is currently moving from 100% importation to 0% importation, with exports having already started.
He declared, “This is where we are supposed to be.”
At the current Nigerian International Energy Summit (NIES) in Abuja, the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) revealed this, pointing out that the nation had suffered severe economic losses due to decades of heavy petroleum product imports.
During the summit, the Chief Executive of the Authority, Engr. According to Saidu Mohammed, the government is putting a high priority on domestic refining and aiming to source all of Nigeria’s petroleum product needs domestically.
“Inadequate infrastructure and suboptimal supply chains have been associated with the downstream sector for decades,” Mohammed stated. “That story is evolving. The downstream is progressively achieving the stability needed to draw investment and is becoming more market-driven.
According to him, Nigeria, which has previously relied solely on imported petroleum products, is currently moving from 100% importation to 0% importation, with exports having already started.
He declared, “This is where we are supposed to be.”
Gain of ₦6 trillion from deregulation
Mohammed credited the ₦6 trillion gain to the combined effects of increasing gas use, full downstream deregulation, and the naira sale of petroleum products.
He declared, “The downstream sector has experienced a renaissance due to President Bola Tinubu’s bold economic reforms.” “Nigeria has gained approximately ₦6 trillion in just nine months of 2025 by reducing losses previously incurred through importation.”
The energy sector is now a net contributor to foreign exchange revenues rather than a drain on national reserves thanks to the reforms, he continued.
Mohammed stated, “Let the energy sector be a builder of foreign exchange, not an avenue for erosion.”
Gas takes center stage.
The head of NMDPRA further emphasized the increasing significance of natural gas in Nigeria’s energy transformation, characterizing the gas industry as a developing pillar of both regional exports and domestic energy supply.
He stated that measures are being taken to develop infrastructure, boost demand, and establish a commercially driven gas market that can draw investment throughout the value chain as part of the Federal Government’s Decade of Gas strategy.
Mohammed stated, “We need to add value to the gas we have, not just transport or export it raw.” Nigeria ought to serve as a center for products made from refined gas. There is no reason we should not be exporting urea, ammonia and fertilisers.”
Infrastructure, private capital, and regulation
Mohammed emphasized that maintaining investor confidence still depends on effective regulation, pointing out that project viability needs to be proven before permits are granted.
He declared, “We cannot approve projects for approval’s sake.” “Nigeria’s strategic energy and economic planning must be reflected in every project, including retail filling stations.”
He added that ineffective product transportation techniques must be replaced with contemporary pipeline-based distribution centered around refinery hubs, and that the downstream recovery cannot be financed solely by public resources.
“For this reason, we are formulating a plan in which refinery hubs like Dangote, Port Harcourt, and others serve as the origin of pipelines,” he stated. “Where old corridors are no longer viable, this will realign flow directions and replace aging infrastructure.”
He asserts that the purpose of NMDPRA is to reduce investment risk by guaranteeing equity, openness, regulatory uniformity, and effective licensing procedures.
Investor confidence and market discipline
Mohammed claimed that by enforcing the Network Code, which demands legitimate gas supply agreements and payment assurances prior to access being allowed, Nigeria is enhancing market discipline, especially in the gas industry.
According to him, “investors invest where contracts are respected and rules are stable.” “Market confidence is developed through consistent actions and reliable institutions; it is not declared.”
He went on to say that regulators, investors, operators, financiers, and consumers all share responsibility for Nigeria’s downstream development.
Iledare: The market is still flawed
Wumi Iledare, a professor of petroleum economics, issued a warning, pointing out that Nigeria’s midstream and downstream sectors are still anti-competitive and structurally flawed.
Iledare declared, “Perfection does not exist in Nigeria.” An inclusive regulator is what the nation needs. Market failure is unavoidable in the absence of such.
He maintained that free participation by all parties, whether through imports or home manufacturing, is essential to market efficiency.
Iledare warned that attempts to circumvent regulators while appealing to the public could jeopardize the system, stating that consistent public support and reliance on regulatory institutions are essential for market functioning.
“The market will fail if stakeholders don’t trust the regulator, and nobody will gain from that,” he stated.
