NMDPRA Reduces Fuel Smuggling by 35%, Says DAPPMAN
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for significantly reducing cross-border fuel smuggling by 35 percent through enhanced anti-smuggling measures.
In a statement issued on Monday and signed by its Executive Secretary, Olufemi Adewole, DAPPMAN credited the milestone to what it described as the “firm, fair, and functional” regulatory leadership of the NMDPRA. According to Adewole, the Authority’s strategic oversight has driven “stability, innovation, energy access, and continuing growth” in the petroleum downstream sector.
“The NMDPRA, under the leadership of Farouk Ahmed, is transforming the downstream oil sector,” Adewole stated. “DAPPMAN remains committed to supporting the Authority’s efforts to ensure sustainability in the sector and enhance access to world-class energy solutions across Nigeria.”
He added that the agency’s collaborative efforts with the Nigerian National Petroleum Company Limited (NNPCL) and other key stakeholders have led to a significant reduction in fuel scarcity incidents and ensured a more stable and consistent supply nationwide.
Adewole also cited the NMDPRA’s transparent regulatory framework as a catalyst for new investments in refining and distribution. According to him, the streamlined licensing processes introduced by the Authority have helped attract $1.2 billion in modular refinery investments since 2022, as detailed in the NMDPRA’s 2024 Industry Brief.
Among the notable achievements highlighted were:
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A 35% reduction in fuel smuggling due to stricter monitoring, as revealed by the NNPC’s latest security report.
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Implementation of the Automated Downstream System, enabling real-time monitoring to curb hoarding and illegal product sales.
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Improved fuel quality, with 98% compliance among major depots.
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Increased investor confidence driven by regulatory predictability.
Adewole praised the Petroleum Industry Act (PIA) for empowering the NMDPRA to pursue market-driven reforms, including downstream deregulation, price liberalisation, and enhanced competition.
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“We’ve seen the Authority elevate stakeholder engagement and compliance to a strategic level,” he said. “This has fostered open dialogue with industry players, ensuring policy alignment with market realities.”
He further noted that the Authority’s strict enforcement of product standards has led to a marked decline in illegal refining and improved fuel quality nationwide.
Calling for greater collaboration, Adewole urged all stakeholders to align with the NMDPRA in making the sector more competitive and attractive for fresh investment and innovation.
“Ultimately, DAPPMAN believes that sustained collaboration is the key to driving full deregulation and boosting the petroleum sector’s contribution to national economic growth,” he concluded.
