NMDPRA: Downstream Deregulation Saves Nigeria Over ₦6 Trillion in Fuel Import Losses in Just 9 Months

 

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that reforms in the downstream petroleum sector, particularly full deregulation, have delivered over ₦6 trillion in savings for the country within the first nine months of 2025.

The Chief Executive of NMDPRA, Saidu Mohammed, disclosed this during the Nigeria International Energy Summit (NIES) 2026 in Abuja. He attributed the massive savings to a combination of bold policy moves under President Bola Tinubu's administration, including:

Full deregulation of the downstream sector

Harmonisation of the foreign exchange market

Increased utilisation and incentivisation of gas

Trading of crude oil and petroleum products in naira

Mohammed explained that these reforms have drastically reduced Nigeria's historical dependence on imported petroleum products, cutting fiscal and foreign exchange losses previously incurred through imports.

“In just nine months of 2025, Nigeria has gained about ₦6 trillion by reducing losses previously incurred through importation,” Mohammed said, according to reports from Vanguard and other outlets. He described the cumulative impact as having “reduced the fiscal and economic losses of importing petroleum products by over ₦6 trillion.”

The NMDPRA boss emphasised that the country is aggressively transitioning from 100% reliance on imports toward full domestic refining capacity. The long-term vision includes achieving zero fuel imports and eventually positioning Nigeria as a net exporter of petroleum products.

“This is where we are supposed to be,” Mohammed stated, highlighting signs of revival in the downstream sector. He also noted ambitions to scale domestic refining to 1 million barrels per day (mbpd) to support industrialisation and energy security.

The announcement aligns with broader economic reforms aimed at stabilising the naira, reducing subsidy burdens, and attracting investments into midstream and downstream infrastructure.

Industry experts have welcomed the development but noted that challenges remain, including ensuring market competition and addressing imperfections in the downstream space.

This milestone underscores the potential of sustained reforms to transform Nigeria's oil and gas sector from a major drain on national resources to a driver of economic growth.