Nigeria’s downstream sector undergoing transformation: NNPC

Mumuni Dagazau, executive vice president (EVP) of downstream, NNPC Ltd., says the nation’s downstream oil and gas sector is undergoing a transformation driven by deregulation, foreign exchange reforms, and strategic collaborations.
Mr Dagazau made this known on Monday at the 19th Africa Downstream Energy Week in Lagos, with the theme “Energy Sustainability: Growth Beyond Boundaries and Competition.”
He said recent policy reforms had unlocked new growth opportunities, encouraging integration, innovation, and stronger partnerships across the energy value chain.
“We are witnessing strategic measures, supply partnerships, and joint investments that signal a shift from siloed operations to integrated ecosystems.
“These developments are not merely transactional; they are structural, redefining how we produce, distribute, and consume energy,” Mr Dagazau said.
The NNPC executive noted that sustaining the current momentum required prioritising key enablers such as security, infrastructure, innovation, and transparency.
He said, “The safety of our people and assets is foundational. Investment in robust infrastructure is essential to meet demand and unlock new opportunities.”
Mr Dagazau said frameworks like the Petroleum Industry Act (PIA) and fiscal incentives for renewable and gas projects were creating a stable environment for long-term investment.
He emphasised the growing role of digitisation, automation, and low-carbon technologies, saying they were key to achieving operational excellence and reducing environmental impacts.
Mr Dagazau also noted that government reforms had catalysed growth in the liquefied petroleum gas (LPG) and compressed natural gas (CNG) markets, opening new business frontiers and empowering indigenous small and medium enterprises.
“Despite local and global headwinds, Nigeria’s downstream sector enjoys strategic advantages. Abundant reserves and expanding infrastructure position the country as a regional energy hub,” Mr Dagazau noted.
He added that the transition to cleaner fuels presented niche export opportunities, while access to international financing platforms was enhancing competitiveness.
Mr Dagazau commended the increasing collaboration among African downstream players through public listings, mergers, and cross-border partnerships, saying such efforts were positioning Africa as a global energy player.
He explained, “Collaboration is Africa’s new competitive edge. To consolidate our gains and unlock new frontiers, cooperation must become our default mode.”
He noted that platforms such as OTL Africa Downstream Week remained vital in aligning stakeholders and advancing shared industry goals.
“At NNPC Limited, we are deploying new infrastructure and revamping existing assets to support strategic alliances.
“Our co-investments across upstream, midstream, and downstream operations reflect our belief that shared growth is sustainable growth,” he maintained.
He urged industry leaders to view sustainability as a catalyst, not a constraint, and to see it as driving profitability, innovation, and long-term value.
Mr Dagazau reaffirmed NNPC Ltd’s commitment to building an inclusive, secure, and sustainable energy future, calling for purpose-driven innovation and collaboration.
Also speaking, Governor Babajide Sanwo-Olu of Lagos State described the OTL Africa Downstream Energy Week as the continent’s foremost platform for driving energy dialogue, policy reform, and investment.
Represented by Abiodun Ogunleye, commissioner for energy resources, Mr Sanwo-Olu said Lagos had hosted nearly every edition of the event over the years, reinforcing the city’s status as the energy and logistics capital of sub-Saharan Africa.
Mr Sanwo-Olu commended the OTL Africa platform for its impact, noting that it had influenced major policy shifts and encouraged private-sector participation across the continent.
The governor cited recent multibillion-naira investments by Mainland Oil and Gas and long-term partnerships with Rainoil Ltd as examples of how engagement through the forum continued to stimulate growth.
He added that global technology firms such as Dover Fuelling Solutions had leveraged the platform to introduce automation and digital tools, transforming Africa’s fuel retailing sector.
The governor reiterated Lagos State’s commitment to clean energy and inclusive growth through initiatives such as the Lagos Electricity Policy and Energy Transition Plan, which promote private participation and sustainable development.
Mr Sanwo-Olu welcomed delegates and investors, expressing optimism that the forum would unlock new opportunities for Nigeria and the continent.
(NAN)
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