Uche Cecil Izuora
Nigeria has sustained licensing of modular refinery investment with streamlining licensing processes which has attracted $1.2 billion since 2022.
According to the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), who gave the figure citing Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Industry Brief, 2024, observed that the Agency’s transparent regulatory framework has attracted new investments into refining and distribution, citing the authority’s licensing of modular refineries and compliance enforcement which is currently bolstering private sector participation.
The Association attributed the stability, innovation, energy access and continuing growth in the sector to strategic regulatory oversight by the regulator.
DAPPMAN said the “firm, fair and functional” leadership of the NMDPRA’s has facilitated improved operational efficiency, product availability, and investor confidence in downstream sector.
The Executive Secretary, DAPPMAN, Olufemi Adewole, said the NMDPRA under the leadership of Engr. Farouk Ahmed is transforming the sector, adding that DAPPMAN would continue to support and work with the authority to achieve sustainability in the sector and enhance access to world-class energy solutions across the nation.
“DAPPMAN applauds the commitment of the NMDPRA to fostering a competitive market, enhancing energy security, and encouraging innovation as the sector responds to unfolding global oil and gas market challenges and opportunities,” he said.
Adewole said the intervention of the NMDPRA and its collaboration with the NNPC Limited and other stakeholders in the sector has significantly reduced fuel scarcity incidents, ensuring consistent nationwide supply. According to recent reports, Nigeria has maintained petrol sufficiency in recent times, a marked improvement from previous years.
Other notable achievements of the NMDPRA include its price stricter anti-smuggling measures which have reduced cross-border fuel diversion by 35%, according to an NNPC Security Report; improved innovation and compliance enforcement through the Automated Downstream System (ADS) which is reducing hoarding and illegal sales through real-time monitoring of product distribution; zero tolerance for adulterated products yielding improved fuel quality, with 98% compliance in major depots; and regulatory predictability driving long-term planning and investment.
Lauding the Petroleum Industry Act (PIA) 2021, Adewole said it has empowered the NMDPRA to implement market-driven policies, including the deregulation of Downstream Sector and the accompanying price liberalization and promotion of a more competitive market.
“We have seen NMDPRA take Stakeholder Engagement & Compliance to a strategic level and this is driving open dialogue with industry players, ensuring policies align with market realities. We have witnessed an unprecedented reduction in illegal refining and improved product quality through the authority’s enforcement of standards,” he added.
Adewole urged all stakeholders in the downstream sector to join forces with the NMDPRA to make the sector more competitive and shore up the capacity needed for fresh investments, innovation and sustainable energy solutions.
“Overall, DAPPMAN is delighted that the NMDPRA is driving sectoral resilience as their proactive policies on depot operations, and import regulations continue to restore confidence among investors and consumers alike. Ultimately what we need in the sector is sustained collaboration to drive full deregulation and enhanced contribution to the nation’s economic growth and development,” he said.