Nigeria has earned an estimated N6 trillion from ongoing reforms in the downstream petroleum sector within the first nine months of 2025, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The agency made the disclosure during the Nigerian International Energy Summit (NIES) in Abuja, emphasizing that decades of heavy dependence on petroleum product importation had previously cost the nation massive economic losses.
Speaking at the event, NMDPRA Chief Executive, Engr. Saidu Mohammed, said the government is now prioritising domestic refining and working towards meeting 100 per cent of Nigeria’s petroleum product demand locally.
“For decades, the downstream sector suffered from poor infrastructure and inefficient supply chains, but that narrative is changing,” Mohammed said. “The sector is now becoming market-driven and stable enough to attract long-term investment.”
He attributed the N6 trillion gains to a combination of full downstream deregulation, increased gas utilisation, and the sale of petroleum products in naira, noting that these measures have reduced the losses once caused by import dependence.
“In just nine months of 2025, Nigeria has gained about N6 trillion by cutting out the inefficiencies and foreign exchange losses tied to importation,” he stated.
According to him, the reforms have also helped conserve foreign reserves and transformed the energy sector into a net contributor to foreign exchange earnings, rather than a burden on the economy.
Mohammed further highlighted the expanding role of natural gas in Nigeria’s energy transition, describing it as a central pillar of domestic energy supply and regional trade. Under the Federal Government’s Decade of Gas initiative, he said policies are being implemented to boost infrastructure, stimulate demand, and attract investment across the gas value chain.
“What we need is to add value to the gas we have, not just transport or export it raw. Nigeria should be a hub for refined gas products — exporting urea, ammonia, and fertilisers,” he added.
The NMDPRA boss stressed that effective regulation remains critical to sustaining investor confidence, insisting that all approved projects must demonstrate viability and align with national energy goals.
“We cannot approve projects for approval’s sake. Every project — even a filling station — must fit into Nigeria’s strategic energy and economic framework,” he said.
He also underscored the need for private sector participation in funding downstream infrastructure, noting that outdated product transport systems would be replaced with pipeline-based distribution networks originating from major refinery hubs like Dangote and Port Harcourt.
“This strategy will modernize distribution, replace ageing infrastructure, and realign product flow to support Nigeria’s new energy vision,” Mohammed concluded.
