Nigeria saved N6tn via downstream oil reforms – FG

Nigeria is shifting in the direction of ending its dependence on imported petroleum merchandise as a part of a sweeping overhaul of the downstream provide chain, the Authority Chief Govt of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Saidu Mohammed, has stated.

Mohammed disclosed this on Wednesday in Abuja whereas delivering a keynote deal with on the 2026 Nigerian Worldwide Power Summit, themed “Driving Nigeria’s Downstream Renaissance: Regulation, Funding, and Market Confidence.”

He stated the nation is dismantling the long-standing mannequin of heavy import reliance, focusing on a transition from 100 per cent importation to zero importation, earlier than positioning itself as a web exporter of petroleum merchandise.

In keeping with the ACE, Nigeria has saved greater than N6tn in fiscal and international change losses inside the first 9 months of 2025 because the nation aggressively transitions from full import dependence in the direction of home refining and eventual export.

“The cumulative impression of the total deregulation of the downstream sector, the harmonisation of the foreign exchange market, the incentivisation of fuel, and the buying and selling of crude and merchandise in naira has decreased the fiscal and financial losses of importing petroleum merchandise by over N6tn within the first 9 months of 2025,” Mohammed stated.

He added that the reforms are reversing a long time of inefficiency that had outlined Nigeria’s downstream petroleum business. “The provision chain panorama of the sector has depended considerably on importation, and that’s the story we need to change, from 100 per cent importation to zero importation, after which we begin climbing in the direction of exportation,” Mohammed stated.

Mohammed famous that the operationalisation of the Petroleum Trade Act has reworked the downstream sector into a totally liberalised market, lowering the perennial gas shortage and provide distortions that after plagued the economic system.

“At the moment, pricing within the downstream sector is more and more pushed by market fundamentals, and we’re attaining the extent of stability required to draw sustainable funding. There can’t be an funding the place there is no such thing as a readability or predictability,” he added.

The NMDPRA chief stated Nigeria is now assembly a considerable portion of its home gas demand domestically, describing refinery revival because the spine of the downstream renaissance.

“We have now made room for refineries. The NNPC refineries are coming again. We heard it immediately from the NNPC CEO. Licences have additionally been issued to extra refineries, and Nigeria has sufficient market area, not simply domestically, however throughout West Africa and the whole continent,” he stated.

Past liquid fuels, Mohammed stated Nigeria is increasing gas-based alternate options as a part of a broader technique to turn into a continental power hub. “The ultimate evolution level is for Nigeria to turn into not only a regional, however a continental power energy. Fuel is central to this ambition, for cleaner energy, industrial growth, transport fuels, fertilisers, and manufacturing,” he acknowledged.

He added that Nigeria had no cause to not export value-added fuel merchandise resembling urea, ammonia, and fertilisers, relatively than exporting uncooked assets. Mohammed credited the downstream turnaround to the daring financial reforms of President Bola Tinubu, saying the sector is benefiting from renewed investor confidence.

“The downstream sector is having fun with a renaissance created by the daring financial reforms of this administration, and we’ll proceed to leverage these reforms for sustained progress,” he stated.

He emphasised that conserving international change is vital to macroeconomic stability. “We must always preserve our international change for certainty. Let the power sector be the builder of international change, not the avenue for eroding it,” he added.

Mohammed assured buyers that NMDPRA’s regulatory method prioritises transparency, equity, and industrial viability. “Markets flourish solely when guidelines are clear, establishments are credible, and buyers belief the system. Regulation should add worth, not turn into a blockage,” he stated.

Undertaking approvals are actually tied to clear financial viability and alignment with Nigeria’s strategic power course. “We can not license initiatives with out understanding their industrial logic. Nigeria should have a transparent plan for the way its power market opens and evolves,” he famous.

He highlighted reforms in fuel market self-discipline via the implementation of the community code, making certain structured contracting, assured funds, and orderly fuel transportation.

Mohammed acknowledged that Nigeria’s petroleum logistics infrastructure stays inefficient however stated a refinery-centric pipeline technique is being pursued to draw personal funding.

“Merchandise ought to transfer from refineries via safe pipelines, not by essentially the most inefficient means. This ambition will entice buyers, and funding should come from the personal sector,” he stated.

He emphasised that regulatory credibility stays Nigeria’s strongest foreign money. “Investor confidence is constructed each day via credible establishments and constant actions. As regulators, our credibility is Nigeria’s credibility,” Mohammed acknowledged.

He concluded by calling for collaboration amongst authorities, buyers, operators, and customers to maintain the downstream transformation and place Nigeria as Africa’s power chief.