According to the Federal Government of Nigeria, improvements in the downstream petroleum sector have generated an estimated ₦6 trillion in benefits in the first nine months of 2025.

Reduced reliance on imports and the effects of gasoline market liberalisation are credited with the gain.

This was revealed by the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) during the current Nigerian International Energy Summit (NIES) in Abuja.

The authority pointed out that the nation had suffered severe economic losses as a result of decades of massive petroleum product imports.

During the summit, the Chief Executive of the Authority, Engr. According to Saidu Mohammed, the government is putting a high priority on domestic refining and aiming to source all of Nigeria's petroleum product needs domestically.

"Inadequate infrastructure and suboptimal supply chains have been associated with the downstream sector for decades," Mohammed stated. "That story is evolving. The downstream is steadily achieving the stability needed to draw investment and is growing increasingly market-driven.

According to him, Nigeria used to be totally dependent on imported petroleum products, but it is currently moving from 100% importation to 0% importation, with exports already starting.

He declared, "This is where we are supposed to be."

Mohammed ascribed the 6 trillion gain to the combined effects of increasing fuel consumption, full downstream deregulation, and the selling of petroleum products in naira.

He declared, "The downstream sector has experienced a renaissance due to President Bola Tinubu's bold economic reforms." "Nigeria has gained approximately ₦6 trillion in just nine months of 2025 by reducing losses previously incurred through importation."

The energy sector is now a net contributor to foreign exchange revenues rather than a drain on national reserves thanks to the reforms, he continued.

Mohammed stated, "Let the energy sector be a builder of foreign exchange, not an avenue for erosion."

The head of NMDPRA also emphasised the increasing significance of natural gas in Nigeria's energy transformation, characterising the gas industry as a developing pillar of both regional exports and domestic energy supplies.

"Policy is being implemented to build infrastructure, stimulate demand, and create a commercially driven gas market capable of attracting investment across the value chain," he said, referring to the Federal Government's Decade of Gas project.

Mohammed stated, "Instead of just transporting or exporting our gas in its raw form, we must add value to it." "Refined gas products should be concentrated in Nigeria. There is no reason why we shouldn't export fertilisers, urea, and ammonia.

Mohammed stressed that effective regulation remains central to sustaining investor confidence, noting that project viability must be established before permits are issued.

“We cannot approve projects for approval’s sake,” he said. “Every project — even a retail filling station — must align with Nigeria’s strategic energy and economic planning.”

He said the downstream revival cannot be funded by public resources alone, adding that inefficient product transportation methods must give way to modern pipeline-based distribution anchored around refinery hubs.

“That is why we are developing a strategy where pipelines originate from refinery hubs such as Dangote, Port Harcourt and others,” he said. “This will replace ageing infrastructure and realign flow directions where old corridors are no longer viable.”

According to him, NMDPRA’s role is to de-risk investment by ensuring fairness, transparency, regulatory consistency and efficient licensing processes.

According to Mohammed, Nigeria is enforcing the Network Code, which demands legitimate gas supply agreements and payment assurances before granting access, in order to promote market discipline, especially in the gas industry.

According to him, "investors invest where contracts are respected and rules are stable." "Market confidence is developed through consistent actions and reliable institutions; it is not declared."

Regulators, investors, operators, financiers, and consumers all share responsibilities for Nigeria's downstream development, he continued.
Petroleum economics researcher Wumi Iledare cautioned that Nigeria's midstream and downstream sectors continue to be structurally defective and anti-competitive.

Iledare declared, "Perfection does not exist in Nigeria." "The nation needs a regulator that is inclusive. Market failure is unavoidable without it.

Noting that this is essential to market efficiency, he contended that all participants must be free to participate, whether through importation or home manufacturing.

Iledare warned that attempts to circumvent regulators in an effort to win over the public could jeopardise the system, stating that consistent public support and reliance on regulatory institutions are essential for market functioning.

"The market will fail—and that will benefit no one—if stakeholders fail to rely on the regulator," he stated.