The Nigerian Midstream and Downstream Petroleum Regulatory Authority has revealed that the combined effects of full downstream deregulation and foreign exchange reforms have saved the country more than N6 trillion in fuel import losses.
Saidu Mohammed, Chief Executive of NMDPRA, made the disclosure at the ongoing Nigeria International Energy Summit 2026 in Abuja, noting that these savings occurred during the first nine months of 2025.
Delivering a keynote address, Mr. Mohammed credited much of the sector’s recent progress to the economic reforms implemented under President Bola Tinubu.
“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,” he said.
He further added, “We congratulate and celebrate Mr President and our Ministers for these enduring leadership legacies in the downstream energy sector.”
Mr. Mohammed highlighted that for decades, Nigeria’s downstream value chain suffered from infrastructure deficits, weak market structures, inefficient supply chains, poor regulatory compliance, inadequate investment, and substandard safety and environmental practices.
“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 stated.
He noted that the Petroleum Industry Act (PIA) 2021 had fundamentally reshaped the downstream sector into a fully liberalised market, eradicating persistent product scarcity and supply uncertainty.
According to Mr. Mohammed, improved supply stability has ensured the consistent availability of petroleum products, while market-driven pricing has created the predictability required to attract further investment.
He also highlighted a transformation in the downstream supply chain, which historically relied heavily on imports. The sector is now benefiting from expanded domestic refining capacity, increased use of gas-based alternative fuels, improved logistics, and enhanced 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,” Mr. Mohammed said.
He added, “The optimal operationalisation and future expansion of this facility are critical to Nigeria’s aspiration of becoming a regional and continental energy hub.”
