The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has said that strategic regulatory reforms by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) have helped stabilise Nigeria’s downstream oil sector, attract fresh investments and restore investor confidence.

Executive Secretary of DAPPMAN, Olufemi Adewole, said the NMDPRA’s “firm, fair and functional” oversight under the leadership of Engr. Farouk Ahmed has strengthened operational efficiency, ensured product availability and positioned the downstream market for sustainable growth.

“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.

He explained that transparent regulation and consistent engagement with stakeholders have combined to attract new capital, streamline licensing and encourage private sector participation across refining and distribution.

According to the NMDPRA’s 2024 Industry Brief, about $1.2 billion has been invested in modular refinery projects since 2022, demonstrating rising investor confidence in the sector’s future.

Adewole also highlighted the collaboration between the NMDPRA, the Nigerian National Petroleum Company (NNPC) Limited and other stakeholders, which has helped reduce fuel scarcity incidents and ensured steady nationwide supply, an improvement compared to previous years of recurrent shortages.

He noted that the NMDPRA’s adoption of the Automated Downstream System (ADS) has strengthened real-time monitoring of product distribution, curbed hoarding and illegal sales, and boosted compliance.

A recent NNPC Security Report confirms that tougher anti-smuggling measures put in place by the NMDPRA have cut cross-border fuel diversion by 35 per cent, further safeguarding local supply.

Adewole said the authority’s zero-tolerance approach to fuel adulteration has driven significant improvements in product quality, with a 98 per cent compliance rate now recorded across major depots.

He pointed to the Petroleum Industry Act (PIA) 2021 as the legal framework that has empowered the NMDPRA to deliver market-driven policies, including the deregulation of the downstream sector, price liberalisation and the creation 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,” Adewole said.

He urged stakeholders across the downstream value chain to sustain the collaboration that is helping to position Nigeria’s oil and gas industry for a future defined by innovation, fresh investments and stable energy access.

“Overall, DAPPMAN is delighted that the NMDPRA is driving sectoral resilience as their proactive policies on depot operations and import regulations continue to restore confidence among investors and consumers alike. Ultimately, what we need in the sector is sustained collaboration to drive full deregulation and enhanced contribution to the nation’s economic growth and development,” he added.

Adewole explained that the authority’s transparent framework has opened the sector to fresh capital and expanded private sector participation. He cited the licensing of modular refineries and strict compliance measures as clear signals that the downstream sector is moving towards greater self-sufficiency and efficiency.