The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has credited the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) with significantly reducing fuel smuggling and restoring investor confidence in the petroleum downstream sector.
In a statement issued Monday by its Executive Secretary, Olufemi Adewole, the association highlighted that cross-border fuel diversion had dropped by 35%, citing findings from an NNPC Security Report. The improvement, according to DAPPMAN, is the result of stricter anti-smuggling policies and effective regulatory enforcement by the NMDPRA.
Adewole praised the Authority’s leadership under Farouk Ahmed, describing it as “firm, fair, and functional,” and said its policies have led to increased efficiency, greater product availability, and a more attractive investment climate.
“The NMDPRA has become a catalyst for innovation, energy access, and sustained growth in the downstream oil sector,” he said. “We at DAPPMAN fully support their vision and will continue working alongside the Authority to deliver reliable, world-class energy solutions across Nigeria.”
Adewole emphasized that the Authority’s collaboration with the Nigerian National Petroleum Company Limited (NNPCL) and other stakeholders had also helped stabilize national fuel supply and reduce instances of scarcity a notable improvement from previous years.
Automation and Compliance Driving Change
He lauded the NMDPRA’s Automated Downstream System, which offers real-time monitoring of fuel distribution and has been instrumental in curbing hoarding, illegal sales, and improving transparency in supply chains. He noted that enforcement efforts had raised compliance with fuel quality standards to 98% among major depots, with a clear decline in adulterated products.
The commission’s regulatory transparency, he added, has been critical in attracting private sector participation, particularly in refining and distribution.
According to the NMDPRA Industry Brief 2024, streamlined licensing and a consistent regulatory environment have facilitated $1.2 billion in modular refinery investments since 2022. Adewole credited this to the Authority’s efficient handling of approvals and compliance frameworks.
Empowered by the Petroleum Industry Act
DAPPMAN also acknowledged the role of the Petroleum Industry Act (PIA) in empowering the NMDPRA to implement market-oriented reforms such as price liberalisation, deregulation, and promoting a competitive downstream market.
“We’ve seen the Authority embrace strategic stakeholder engagement and align policies with market realities through transparent dialogue,” Adewole added. “The results are clear illegal refining has decreased, and product quality has improved.”
He urged stakeholders to continue supporting the NMDPRA in building a resilient sector capable of attracting new investments, promoting innovation, and delivering sustainable energy solutions.
“Ultimately, the downstream sector’s transformation hinges on collaboration. The NMDPRA’s proactive policies on depot operations and import regulation are restoring faith among both investors and consumers,” he said.
Adewole concluded by reaffirming DAPPMAN’s commitment to full deregulation and improved sectoral contribution to national economic growth.
