Nigeria is making significant strides in reducing its dependence on imported petroleum products, thanks to sweeping reforms in the downstream oil sector. Speaking at the 2026 Nigerian International Energy Summit in Abuja, Saidu Mohammed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), revealed that these reforms have already saved the country more than N6 trillion in fiscal and foreign exchange losses within the first nine months of 2025. The summit, themed “Driving Nigeria’s Downstream Renaissance: Regulation, Investment, and Market Confidence,” highlighted the country’s ambitious shift toward self-sufficiency.
Mohammed explained that the reforms aim to move Nigeria from 100% import reliance to zero importation, ultimately positioning the nation as a net exporter of petroleum products. “The full deregulation of the downstream sector, harmonisation of the forex market, incentivisation of gas, and trading of crude and products in naira have collectively reduced the economic losses of importation by over N6 trillion,” he said. These measures are reversing decades of inefficiency in a sector long dominated by costly imports.
A key pillar of the transformation is the revival of domestic refineries. According to Mohammed, the NNPC refineries are being reactivated, and new licences have been issued to private operators, expanding Nigeria’s refining capacity. The ACE noted that domestic production now meets a substantial portion of the country’s fuel demand, while excess capacity creates opportunities for exports across West Africa and the continent. “We have made room for refineries, and Nigeria has enough market space not just domestically, but across Africa,” he said.
Beyond liquid fuels, Nigeria is also focusing on gas-based energy solutions as part of a broader plan to become a continental energy hub. Mohammed emphasised that the country aims to export value-added gas products such as urea, ammonia, and fertilisers rather than raw resources. “Gas is central to cleaner power, industrial development, transport fuels, fertilisers, and manufacturing. This is how Nigeria becomes an energy leader,” he stated.
Mohammed concluded by stressing the importance of transparent regulation and collaboration between government, investors, and operators. With credible institutions and a refinery-centric logistics strategy, Nigeria is building investor confidence and laying the groundwork for long-term growth. “Investor confidence is built daily through credible institutions and consistent actions. As regulators, our credibility is Nigeria’s credibility,” he said, calling for a collective effort to sustain the country’s downstream renaissance.
source: punch