The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that the strategic implementation of downstream deregulation and foreign exchange reforms resulted in over N6 trillion in savings from fuel import losses during the first nine months of 2025.
This disclosure was made by the Chief Executive of the NMDPRA, Mr. Saidu Mohammed, during his keynote address at the Mid/Downstream Transformation Debate at the ongoing Nigeria International Energy Summit (NIES) 2026 in Abuja.
Addressing the theme, “Driving Nigeria’s Downstream Renaissance: Regulation, Investment, and Market Confidence,” Mohammed attributed this fiscal recovery to the bold economic reforms introduced by President Bola Tinubu.
He explained that the harmonization of the forex market, combined with incentives for gas utilization and the transition to trading crude and petroleum products in Naira, has effectively curtailed the massive economic drains that previously characterized the sector.
He characterized these shifts as irreversible signs of transformation that have fundamentally reshaped the downstream value chain, moving it away from decades of infrastructure deficits and poor regulatory compliance.
Mohammed specifically highlighted the role of the Petroleum Industry Act (PIA) 2021 in creating a liberalized market that has eliminated persistent fuel scarcity.
A central figure in this new landscape is the Dangote Petroleum Refinery, which Mohammed noted is already meeting a significant portion of domestic requirements.
He expressed optimism that as more refineries come online and existing NNPC Ltd. facilities are rehabilitated, Nigeria’s refining capacity will exceed one million barrels per day in the medium term, positioning the nation as a regional energy hub.
However, the NMDPRA Chief Executive also delivered a pointed critique of the nation’s power sector during the National Gas Day session.
He expressed deep dissatisfaction that despite the country’s vast gas reserves and the privatization of the Power Holding Company of Nigeria (PHCN), electricity generation has remained stagnant.
Mohammed recalled that the country celebrated 4,500MW of generation during the early years of the Obasanjo administration over two decades ago, yet today, the grid still hovers around a mere 5,000MW despite a generating capacity of 13,000MW.
He dismissed the notion that gas shortages were the sole culprit, challenging power-generating companies to be transparent about their actual gas requests and utilization.
