Nigeria is steadily phasing out its reliance on imported petroleum products as it restructures its downstream oil and gas sector, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Saidu Mohammed, has said.
Speaking on Wednesday in Abuja at the 2026 Nigerian International Energy Summit, Mohammed said the country is dismantling decades of import dependence to achieve self-sufficiency and ultimately become a net exporter of refined petroleum products.
He explained that the reforms have already delivered major economic gains, with Nigeria saving over ₦6 trillion in fiscal and foreign exchange costs within the first nine months of 2025. These savings, he said, are the result of full downstream deregulation, foreign exchange harmonisation, gas sector incentives, and the growing practice of trading crude oil and petroleum products in naira.
According to Mohammed, Nigeria is intentionally moving from total importation to zero imports, before expanding into export markets. He noted that the shift is correcting long-standing inefficiencies that once defined the downstream supply chain.
He added that the implementation of the Petroleum Industry Act has liberalised the sector, reduced fuel shortages, and eased supply disruptions. Pricing, he said, is now increasingly influenced by market forces, creating the predictability and stability needed to attract long-term investment.
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Mohammed disclosed that local refining capacity is improving, with state-owned refineries returning to operation and new licences issued to private refiners. He said Nigeria’s market size extends beyond its borders, offering opportunities across West Africa and the wider African continent.
Beyond petroleum products, he said the country is also expanding gas-based energy solutions as part of its ambition to emerge as a continental energy hub. Gas, he noted, will drive cleaner power generation, industrial growth, transportation fuels, fertiliser production, and manufacturing.
The NMDPRA boss stressed that Nigeria should focus on exporting value-added gas products such as fertilisers, urea, and ammonia rather than raw resources. He attributed the sector’s renewed momentum to the economic reforms introduced by President Bola Tinubu, which he said have restored investor confidence.
Mohammed also underscored the importance of conserving foreign exchange, noting that the energy sector should generate forex rather than drain national reserves.
He assured investors that regulatory oversight under the NMDPRA is anchored on transparency, fairness, and commercial viability, with project approvals tied to clear economic value and alignment with Nigeria’s energy strategy.
While acknowledging weaknesses in petroleum logistics infrastructure, he said the government is promoting a refinery-based pipeline network to improve efficiency and attract private capital.
Mohammed concluded by calling for cooperation among regulators, investors, operators, and consumers to sustain the momentum and position
