The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has credited the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) with fostering stability, innovation, energy access, and sustained growth in the petroleum downstream sector through strategic and consistent regulatory guidance.
According to DAPPMAN, the Authority’s “firm, fair and functional” oversight has boosted operational efficiency, ensured consistent product availability, and restored investor confidence across the value chain.
Speaking in a statement, the Executive Secretary of DAPPMAN, Olufemi Adewole, praised the leadership of the NMDPRA under its Chief Executive, Engineer Farouk Ahmed, for transforming the landscape of the sector. He affirmed that the association remains committed to supporting the Authority’s initiatives aimed at achieving sustainability and providing world-class energy access across the country.
“DAPPMAN recognises the NMDPRA’s role in promoting a competitive market, strengthening energy security, and championing innovation as the industry navigates both domestic and global challenges,” Adewole stated.
He noted that collaborative efforts between NMDPRA, NNPC Limited, and other key players have significantly curtailed fuel scarcity, ensuring steady nationwide supply. Recent records confirm Nigeria’s improved petrol sufficiency, a marked contrast to previous years of intermittent shortages.
Adewole also cited the Authority’s transparent and predictable regulatory framework as a catalyst for new investment inflows, particularly in refining and distribution. He referenced the licensing of modular refineries and stronger enforcement of compliance as factors spurring increased private sector participation.
According to the NMDPRA Industry Brief 2024, streamlined licensing processes have led to $1.2 billion in modular refinery investments since 2022.
Other milestones attributed to the NMDPRA include the implementation of stricter anti-smuggling policies, which, according to an NNPC Security Report, have reduced cross-border fuel diversion by 35 per cent. Additionally, the deployment of the Automated Downstream System (ADS) has curbed hoarding and illegal sales through real-time monitoring of product movement. The sector has also seen improved fuel quality, with 98 per cent compliance recorded in major depots.
Adewole further applauded the impact of the Petroleum Industry Act (PIA) 2021, which he said has equipped the NMDPRA to enforce market-oriented policies such as the deregulation of the downstream sector, price liberalisation, and the development of a more competitive operating environment.
“We’ve observed the Authority elevate stakeholder engagement and compliance management to a strategic level, creating a platform for open dialogue and ensuring policy design is grounded in industry realities,” he said.
He added that the enforcement of quality standards has led to a decline in illegal refining activities and notable improvements in product integrity.
Calling for broader support, Adewole encouraged all downstream stakeholders to collaborate with the NMDPRA in advancing sectoral reforms that would unlock new investment opportunities, encourage innovation, and deliver sustainable energy solutions for Nigerians.
“DAPPMAN is pleased that the NMDPRA continues to strengthen resilience in the sector. Their proactive stance on depot operations and import regulations is restoring market confidence among both investors and consumers. What the industry needs now is sustained partnership to fully implement deregulation and accelerate the sector’s contribution to national economic development,” Adewole concluded.