The Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr. Saidu Mohammed, has disclosed that the reforms introduced by President Bola Tinubu in the oil and gas industry has saved the country over N6 trillion.
Engr. Mohammed spoke on Wednesday on “Driving Nigeria’s Downstream Renaissance: Regulation, Investment, and Market Confidence” at the 2026 NIES under the summit sub-theme Driving Domestic Value: Transforming Downstream Markets and Refining.”
He said: “The cumulative impact of the full deregulation of the downstream sector; the harmonization of the forex market; the incentivization and deepening the use of gas and the trading of crude and product in Naira has reduced the fiscal economic losses of Petroleum Product by over N6 trillion in the 1st nine months in 2025.”
The Authority said for decades, the downstream value chain has been associated with negative sectoral performance indicators such as infrastructural deficit; weak market structures; sub-optimal supply chain efficiency; inadequate investment; poor regulatory compliance; and unacceptable operational safety and environmental indices.
“Today, I am pleased to affirm that this narrative is rapidly changing and that the sector is truly witnessing the early but irreversible signs of a renaissance type of transformation that is driven by bold reform; enabled by investment; and sustained by effective market and operational regulatory enablement,” he said.
Mohammed mentioned that in the few years of the operationalization of the new legal framework of the Oil and Gas sector in Nigeria (PIA 2021) the Nigeria’s downstream sector has evolved into a fully liberalized market and is no longer defined by scarcity and supply uncertainty.
“Supply stability has consistently ensured sufficiency of all Petroleum products. The pricing structure of the downstream sector is becoming more driven by the fundamentals of the market and generally attaining the stability level required for encouraging investment in this expansive sector of the economy.
“The supply chain landscape of the sector, which depended significantly on import of nearly all Petroleum Products for a long time is rapidly transforming with growing supply through the nation’s domestic refining capacity, expanding gas-based alternative fuels, improved logistics, and increased private-sector participation,” he added.
While applauding the Dangote refinery for aiding the sector transformation, the NMDPRA boss submitted that the capacity for enhanced domestic supply of Petroleum product in Nigeria would continue to grow as the planned investments in the refinery sector matures.
“We are optimistic that the issued Licences to Establish (LTEs) refineries which are being progressed through various levels of completion, coupled with the rehabilitation of the NNPCL refineries will improve the overall installed refining capacity in Nigeria to well over 1 million bpsd in the medium term.
“The bold economic reforms of His Excellency, President Bola Ahmed Tinubu, GCFR has created the renaissance that the downstream sector is enjoying and would continue to leverage upon for sustained sectoral growth in the future,” he added.
The Authority expressed delight at the growth of the nation’s gas sector as a major energy provider in Nigeria and the region at large. Stating that every unlocks required to deepen the contribution of natural gas in Nigeria’s energy mix are being implemented to create a gas ecosystem that is characterized by optimal gas infrastructural capacity across the nation; robust supply of gas; and enhanced strategic sector demand of gas that is supported by effective market commercial drivers that support investment in the sector.
He also mentioned that the strategic efforts of the government and the industry in this decade of gas are not merely about volumes, but also about unlocking gas for industrial development, cleaner power, transport fuels, and manufacturing linkages that would transform Nigeria’s energy mix and broaden economic impact.
However, Mohammed affirmed that infrastructure alone does not create a renaissance. Noting that markets flourish only where rules are clear, institutions are credible, and investors trust the system.
“This is why regulation sits at the heart of Nigeria’s downstream transformation,” he added.
The Authority further stated that as regulators, “we understand that our credibility is Nigeria’s credibility. This is why we are committed to regulatory professionalism, stakeholder engagement, and continuous improvement aligned with global best practices while remaining grounded in Nigeria’s unique economic realities.
However, he said “Nigeria’s downstream renaissance is not the responsibility of regulators alone. It is a shared project between government, investors, operators, financiers, and consumers. Our role is to set the rules, enforce them fairly, and inspire confidence. Your role is to invest, innovate, and operate responsibly.”
He said the NMDPRA would continue to collaborate with all relevant institutions industry players to ensure that the Nigerian Midstream and Downstream Petroleum Sector remains healthy, competitive and attractive, and that Nigeria continues to provide the leadership required in the energy ecosystem of the continent.
