NMDPRA Reforms Attract $1.2 Billion Modular Refinery Investments, Cut Fuel Smuggling by 35 Percent, Says DAPPMAN

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has received strong commendation from the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) for attracting $1.2 billion in modular refinery investments since 2022. According to DAPPMAN, this achievement is largely due to the NMDPRA’s simplified licensing procedures and proactive regulatory initiatives.

In a statement, DAPPMAN praised the authority’s strategic leadership for driving innovation, improving operational efficiency, and increasing energy access across Nigeria. The association noted that the regulatory changes introduced by NMDPRA have significantly improved investor confidence and strengthened fuel availability throughout the country.

Olufemi Adewole, Executive Secretary of DAPPMAN, described the NMDPRA’s leadership under Chief Executive Farouk Ahmed as firm, fair, and effective. He said this leadership has played a key role in the positive transformation underway in the downstream petroleum sector. Adewole reaffirmed DAPPMAN’s commitment to working closely with the authority to promote long-term sustainability and ensure Nigerians benefit from reliable and world-class energy services.

According to Adewole, NMDPRA’s reforms have helped create a more competitive and secure market environment. He commended the authority’s collaboration with the Nigerian National Petroleum Company Limited (NNPC) and other stakeholders, which he said has contributed to more stable fuel supply and fewer disruptions. As a result, Nigeria is now experiencing consistent availability of petrol, a notable improvement compared to previous years.

Referencing the NMDPRA 2024 Industry Brief, Adewole said the agency’s initiatives have attracted $1.2 billion in investments into modular refinery projects over the past two years. He also cited the NNPC Security Report, which credited NMDPRA’s efforts in combating smuggling with a 35 percent drop in cross-border fuel diversion.

Additional milestones include the implementation of the Automated Downstream System, which enables real-time monitoring of fuel distribution. This system has helped reduce hoarding, prevent illegal sales, and enforce compliance with quality standards. Adewole stated that 98 percent of major fuel depots in the country now meet required quality standards, attributing this success to NMDPRA’s zero tolerance for adulterated products.

He also pointed to the positive impact of the Petroleum Industry Act (PIA), which has given NMDPRA the legal authority to pursue market-driven reforms such as price liberalisation and downstream deregulation. These policies are seen as essential steps toward creating a more transparent and competitive industry.

Adewole noted that the NMDPRA has elevated stakeholder engagement to a strategic level, encouraging open dialogue with industry operators and ensuring that policies reflect actual market conditions. He praised the authority for making significant progress in reducing illegal refining and improving the overall quality of petroleum products.

He called on all stakeholders within the downstream oil and gas industry to support NMDPRA’s efforts and join hands in building a more dynamic and forward-looking energy sector. Adewole stressed that continued collaboration is critical to achieving full deregulation and maximizing the industry’s contribution to national economic development.

DAPPMAN expressed satisfaction with the direction the industry is taking under NMDPRA’s guidance. Adewole concluded that the authority’s policies on depot operations and fuel import regulations are restoring investor and consumer confidence and are essential to the long-term resilience of Nigeria’s petroleum sector.