By Izuchukwu Mayor, Lagos
Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), has attributed the stability, innovation, energy access and continuing growth in the sector to strategic regulatory oversight by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
DAPPMAN said the “firm, fair and functional” leadership of the NMDPRA’s has facilitated improved operational efficiency, product availability, and investor confidence in the downstream sector, according to a statement.
Executive Secretary, DAPPMAN, Olufemi Adewole, was quoted as saying that the Farouk Ahmed-led NMDPRA is transforming the sector.
This is even as he pledged DAPPMAN’s continued support for the authority to achieve sustainability in the sector and enhance access to world-class energy solutions across Nigeria.
“DAPPMAN applauds the commitment of the NMDPRA to fostering a competitive market, enhancing energy security, and encouraging innovation as the sector responds to unfolding global oil and gas market challenges and opportunities,” he said.
Mr. Adewole said the intervention of the NMDPRA and its collaboration with the NNPC Limited and other stakeholders in the sector has significantly reduced fuel scarcity incidents, ensuring consistent nationwide supply.
The statement alluded to reports, which claim that Nigeria has maintained petrol sufficiency in recent times, a marked improvement from previous years.
The Petroleum Industry Act (PIA) 2021, has empowered the NMDPRA to implement market-driven policies, including the deregulation of downstream sector and the accompanying price liberalisation and promotion of a more competitive market.
He opined that NMDPRA’s transparent regulatory framework has attracted new investments into refining and distribution, citing the authority’s licensing of modular refineries and compliance enforcement which is currently bolstering private sector participation.
He said streamlining licensing processes has attracted $1.2 billion in modular refinery investments since 2022, going by the NMDPRA Industry Brief, 2024.
Mr. Adewole cited other notable achievements by the NMDPRA to include its price stricter anti-smuggling measures, which have reduced cross-border fuel diversion by 35%, according to an NNPC Security Report.
There is also improved innovation and compliance enforcement through the Automated Downstream System (ADS) which is reducing hoarding and illegal sales through real-time monitoring of product distribution; zero tolerance for adulterated products yielding improved fuel quality, with 98% compliance in major depots; and regulatory predictability driving long-term planning and investment.
Lauding the Petroleum Industry Act (PIA) 2021, Mr. Adewole said it has empowered the NMDPRA to implement market-driven policies, including deregulation of the downstream sector and the accompanying price liberalization and promotion of a more competitive market.
“We have seen NMDPRA take stakeholder engagement & compliance to a strategic level, and this is driving open dialogue with industry players, ensuring policies align with market realities. We have witnessed an unprecedented reduction in illegal refining and improved product quality through the authority’s enforcement of standards,” he added.
