NMDPRA driving market reform, fuel stability in downstream sector — DAPPMAN
By Olakunle Oke
As Nigeria’s downstream oil and gas industry contends with global market disruptions, key players have credited the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) with spearheading reforms that have fostered competition, improved supply, and enhanced consumer outcomes.
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) attributed these gains to the regulator’s proactive approach in opening up the market and facilitating access to affordable fuel.
According to DAPPMAN Executive Secretary, Olufemi Adewole, the NMDPRA’s transparent licensing regime has attracted new entrants, especially modular refiners, thereby increasing domestic refining capacity beyond the state-owned Nigerian National Petroleum Company (NNPC) Limited.
Citing the NMDPRA Industry Brief, 2024, Adewole noted that over $1.2 billion has been invested in modular refinery projects since 2022, signalling renewed investor confidence in the sector.
Fuel shortages, which once plagued motorists and businesses, have largely been addressed through better coordination between the NMDPRA, NNPC Limited, and private operators. Real-time surveillance enabled by the Automated Downstream System (ADS) allows the Authority to monitor fuel distribution, limit hoarding, and maintain steady supply to filling stations nationwide. As a result, the country has recorded consecutive quarters of petrol sufficiency.
Consumers are also benefitting from stronger anti-smuggling and quality control measures. Referring to figures from an NNPC Security Report, DAPPMAN stated that cross-border fuel diversion has dropped by 35 percent, stabilising local availability and shielding prices from external volatility. Additionally, the regulator’s zero-tolerance stance on fuel adulteration has pushed compliance in major depots to 98 percent, enhancing engine durability and fuel efficiency.
One of NMDPRA’s most lauded achievements, Adewole noted, is regulatory predictability, which has enabled marketers and financiers to plan with greater certainty. Simplified approval processes, clearly defined compliance benchmarks, and regular engagement with stakeholders have created conditions for fair competition and market-driven pricing.
“We’ve seen policy shifts introduced with sufficient lead time, which helps investors align with regulatory schedules,” Adewole said.
Many of these reforms are anchored in the Petroleum Industry Act (PIA) 2021, which empowers the NMDPRA to implement full deregulation and liberalise fuel pricing. DAPPMAN commended the Authority’s use of the PIA to organise stakeholder forums, gather feedback on draft policies, and refine guidelines to reflect operational realities. This collaborative approach, Adewole added, has curbed illegal refining and strengthened regulatory compliance.
Looking ahead, DAPPMAN called for continued partnership across the sector to deepen reforms.
“The next phase is full deregulation, which will pave the way for innovations like off-grid energy systems and cleaner fuel alternatives,” Adewole said.
With the NMDPRA championing competition and operational resilience, the downstream petroleum industry appears set for a new chapter of investment, transparency, and consumer protection.