Nigeria has recorded an estimated ₦6 trillion gain from reforms in the downstream petroleum sector within the first nine months of 2025, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said.
The disclosure was made by the NMDPRA Chief Executive, Engr. Saidu Mohammed, at the ongoing Nigerian International Energy Summit (NIES) in Abuja. He said decades of heavy dependence on imported petroleum products had imposed significant economic losses on the country.
Mohammed explained that the Federal Government is now prioritising domestic refining, with a long-term goal of meeting 100 per cent of Nigeria’s petroleum product demand locally. According to him, reforms in the sector are already yielding tangible economic benefits.
“For decades, the downstream sector was associated with inadequate infrastructure and weak supply chains, but that narrative is changing,” Mohammed said. “The sector is becoming more market-driven and is gradually attaining the stability required to attract investment.”
He attributed the ₦6 trillion gain to full downstream deregulation, increased gas utilisation and the sale of petroleum products in naira, noting that reduced importation has helped conserve foreign exchange and reposition the energy sector as a net contributor to the economy.
“In just nine months of 2025, Nigeria has gained about ₦6 trillion by reducing losses previously incurred through importation,” he said, adding that the reforms have eased pressure on national foreign reserves.
Mohammed also highlighted the growing role of natural gas in Nigeria’s energy transition, describing the gas sector as a key pillar for domestic energy supply and regional exports under the Federal Government’s Decade of Gas initiative.
He stressed the need to move beyond raw gas exports, urging value addition through refined gas products such as urea, ammonia and fertilisers, while maintaining strong regulatory oversight to ensure only viable projects are approved.
According to him, sustained growth in the downstream sector will depend largely on private investment and modern infrastructure, including pipeline-based distribution systems linked to refinery hubs such as Dangote and Port Harcourt, to replace ageing and inefficient transport networks.
