The Nigerian Midstream and Downstream Petroleum Regulatory Authority says the cumulative impact of full downstream deregulation and forex reforms has saved Nigeria over N6 trillion in fuel import losses.

Saidu Mohammed, the chief executive of NMDPRA, stated this at the ongoing Nigeria International Energy Summit 2026 in Abuja, noting that it occurred in the first nine months of 2025.

Delivering a keynote address at the event, Mr Mohammed attributed much of the sector’s current progress to the bold economic reforms of President Bola Tinubu.

According to him, the bold economic reforms of the president have created the renaissance that the downstream sector is enjoying and will continue to leverage upon for sustained sectoral growth in the future.

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

“We congratulate and celebrate Mr President and our Ministers for these enduring leadership legacies in the downstream energy sector,” stated Mr Mohammed.

He said that for decades, Nigeria’s downstream value chain was characterised by infrastructure deficits, weak market structures, inefficient supply chains, poor regulatory compliance, inadequate investment, and unacceptable safety and environmental standards.

”Today, that narrative is rapidly changing; the sector is witnessing early but irreversible signs of transformation driven by bold reforms, enabled by investment, and sustained by effective regulatory oversight,” he said.

Mr Mohammed added that the implementation of the Petroleum Industry Act (PIA) 2021 had fundamentally reshaped the nation’s downstream sector into a fully liberalised market, eliminating persistent scarcity and supply uncertainty.

Mr Mohammed explained that supply stability had ensured consistent availability of petroleum products, while pricing was increasingly driven by market fundamentals, creating the stability required to attract investment.

Mr Mohammed also highlighted the transformation of the downstream supply chain, which historically depended almost entirely on imported petroleum products. He said the sector was benefiting from increased domestic refining capacity, expanded gas-based alternative fuels, improved logistics, and stronger private-sector participation.

“At the centre of this shift is the Dangote Petroleum Refinery, the world’s largest single-train refinery with an installed capacity of 650,000 barrels per day, which is already meeting a significant portion and in some cases all of Nigeria’s domestic petroleum product requirements.

”The optimal operationalisation and future expansion of this facility are critical to Nigeria’s aspiration of becoming a regional and continental energy hub,” Mr Mohammed said.

(NAN)