ABUJA, Nigeria (VOICE OF NAIJA)-Nigeria is steadily moving to end its reliance on imported petroleum products as part of a comprehensive reform of the downstream supply chain, the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Saidu Mohammed, has said.
Mohammed made this known on Wednesday in Abuja while delivering the keynote address at the 2026 Nigerian International Energy Summit, themed “Driving Nigeria’s Downstream Renaissance: Regulation, Investment, and Market Confidence.”
He explained that the country is dismantling its long-standing dependence on imports, with a clear objective of transitioning from 100 per cent importation to zero importation, and ultimately positioning Nigeria as a net exporter of petroleum products.
According to the NMDPRA chief, Nigeria has saved over N6tn in fiscal and foreign exchange losses within the first nine months of 2025, as the nation aggressively shifts from total import dependence towards domestic refining and eventual export.
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“The cumulative impact of the full deregulation of the downstream sector, the harmonisation of the forex market, the incentivisation of gas, and the trading of crude and products in naira has reduced the fiscal and economic losses of importing petroleum products by over N6tn in the first nine months of 2025,” Mohammed said.
He stated that the ongoing reforms are reversing decades of inefficiency that previously characterised Nigeria’s downstream petroleum industry.
“The supply chain landscape of the sector has depended significantly on importation, and that is the story we want to change, from 100 per cent importation to zero importation, and then we start climbing towards exportation,” Mohammed said.
Mohammed noted that the implementation of the Petroleum Industry Act has transformed the downstream sector into a fully liberalised market, significantly reducing the persistent fuel shortages and supply distortions that once affected the economy.
“Today, pricing in the downstream sector is increasingly driven by market fundamentals, and we are attaining the level of stability required to attract sustainable investment. There cannot be an investment where there is no clarity or predictability,” he added.
He said Nigeria is now meeting a substantial portion of its domestic fuel demand locally, describing the revival of refineries as central to the downstream renaissance.
“We have made room for refineries. The NNPC refineries are coming back. We heard it directly from the NNPC CEO. Licences have also been issued to more refineries, and Nigeria has enough market space, not just domestically, but across West Africa and the entire continent,” he said.
Beyond liquid fuels, Mohammed said Nigeria is expanding gas-based alternatives as part of a broader strategy to emerge as a continental energy hub.
“The final evolution point is for Nigeria to become not just a regional, but a continental energy power. Gas is central to this ambition, for cleaner power, industrial development, transport fuels, fertilisers, and manufacturing,” he stated.
He added that Nigeria should prioritise exporting value-added gas products such as urea, ammonia and fertilisers rather than raw resources, attributing the downstream sector’s turnaround to the bold economic reforms of President Bola Tinubu, which have boosted investor confidence.
“The downstream sector is enjoying a renaissance created by the bold economic reforms of this administration, and we will continue to leverage these reforms for sustained growth,” he said.
Mohammed stressed the importance of foreign exchange conservation to macroeconomic stability.
“We should conserve our foreign exchange for certainty. Let the energy sector be the builder of foreign exchange, not the avenue for eroding it,” he added.
He assured investors that NMDPRA’s regulatory framework prioritises transparency, fairness and commercial viability.
“Markets flourish only when rules are clear, institutions are credible, and investors trust the system. Regulation must add value, not become a blockage,” he said.
He explained that project approvals are now tied to clear economic viability and alignment with Nigeria’s strategic energy objectives.
“We cannot license projects without understanding their commercial logic. Nigeria must have a clear plan for how its energy market opens and evolves,” he noted.
Mohammed also highlighted reforms in gas market discipline through the implementation of the network code, which ensures structured contracting, guaranteed payments and orderly gas transportation.
While acknowledging inefficiencies in Nigeria’s petroleum logistics infrastructure, he said a refinery-centric pipeline strategy is being pursued to attract private investment.
“Products should move from refineries through secure pipelines, not by the most inefficient means. This ambition will attract investors, and funding must come from the private sector,” he said.
He emphasised that regulatory credibility remains Nigeria’s strongest asset.
“Investor confidence is built daily through credible institutions and consistent actions. As regulators, our credibility is Nigeria’s credibility,” Mohammed stated.
He concluded by calling for sustained collaboration among government, investors, operators and consumers to consolidate the downstream transformation and position Nigeria as Africa’s energy leader.