Nigeria is taking decisive steps to eliminate its long-standing dependence on imported petroleum products as part of a comprehensive transformation of the downstream oil and gas sector, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said.
The Authority Chief Executive, Saidu Mohammed, disclosed this on Wednesday in Abuja while delivering a panel keynote address at the 2026 Nigerian International Energy Summit. His presentation, themed “Driving Nigeria’s Downstream Renaissance: Regulation, Investment, and Market Confidence,” outlined the government’s strategy to transition from total reliance on fuel imports to full domestic sufficiency and eventual export of refined products.
Mohammed said Nigeria is dismantling the decades-old import-driven supply model, with a clear objective of moving from 100 per cent importation of petroleum products to zero importation, before positioning the country as a net exporter within Africa and beyond.
According to him, the ongoing reforms have already delivered significant economic gains, saving the country more than ₦6 trillion in fiscal costs and foreign exchange losses within the first nine months of 2025 alone. He attributed the savings to the full deregulation of the downstream sector, foreign exchange market harmonisation, expanded gas utilisation, and the adoption of naira-denominated crude and product transactions.
He explained that these measures have sharply reduced the financial burden associated with importing refined petroleum products and are reversing decades of inefficiencies that undermined the sector’s performance.
Mohammed, who was delivering his first major public address since his appointment by President Bola Tinubu in December 2025, said the operationalisation of the Petroleum Industry Act has fundamentally changed Nigeria’s downstream petroleum landscape, turning it into a fully liberalised and market-driven system.
He noted that fuel pricing is now increasingly determined by market fundamentals, bringing greater clarity and predictability to the sector. This, he said, has helped curb chronic fuel shortages and supply distortions while improving the investment climate.
The NMDPRA chief said domestic refining has become the backbone of Nigeria’s downstream revival, with a growing portion of the country’s fuel demand now being met locally. He confirmed that government-owned refineries are gradually returning to operation, while licences have been issued to private investors to expand refining capacity.
Mohammed said Nigeria’s market size presents opportunities not only for domestic supply but also for exports to West Africa and the wider African continent.
Beyond refined fuels, he said Nigeria is accelerating the development of gas-based alternatives as part of a broader ambition to emerge as a continental energy hub. According to him, natural gas will play a central role in cleaner power generation, industrial growth, transportation, fertiliser production and manufacturing.
He added that Nigeria is well positioned to export value-added gas products such as urea, ammonia and fertilisers, rather than limiting itself to the export of raw gas resources.
Mohammed credited the progress recorded in the downstream sector to the economic reforms introduced by the Tinubu administration, noting that investor confidence has improved significantly as a result.
He stressed that conserving foreign exchange remains critical to macroeconomic stability, arguing that the energy sector should become a net generator of foreign exchange rather than a source of depletion.
The NMDPRA chief assured investors that the authority’s regulatory framework is anchored on transparency, fairness and commercial viability. He said project approvals are now based on clear economic logic and alignment with Nigeria’s long-term energy strategy.
He also highlighted reforms aimed at strengthening gas market discipline through the implementation of the network code, which promotes structured contracting, guaranteed payments and efficient gas transportation.
While acknowledging existing inefficiencies in petroleum logistics infrastructure, Mohammed said Nigeria is pursuing a refinery-centred pipeline strategy to reduce product losses and attract private sector investment.
He concluded by emphasising that regulatory credibility is essential to sustaining investor confidence, calling for collaboration among government, operators, investors and consumers to consolidate the downstream transformation and position Nigeria as a leading energy hub in Africa.
