The 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).
The association noted 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.
It added that streamlining licensing processes has attracted $1.2 billion in modular refinery investments since 2022, going by the NMDPRA Industry Brief, 2024.
Executive Secretary of DAPPMAN, Olufemi Adewole, stated that the NMDPRA under the leadership of Engr. Farouk Ahmed is transforming the sector, adding that DAPPMAN would continue to support and work with the authority to achieve sustainability in the sector and enhance access to world-class energy solutions across the nation.
The association 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.
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.
“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.
Other notable achievements of the NMDPRA include its price stricter anti-smuggling measures which have reduced cross-border fuel diversion by 35%, according to an NNPC Security Report; 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, Adewole said it has empowered the NMDPRA to implement market-driven policies, including the deregulation of 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.