The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reported that Nigeria’s daily consumption of Premium Motor Spirit (PMS), or petrol, currently ranges between 45 million and 50 million litres. Farouk Ahmed, the Chief Executive Officer of NMDPRA, shared this during the 18th Africa Downstream Energy Week in Lagos, themed “Alliances For Growth.”
Ahmed noted that petrol consumption typically rises in the fourth quarter due to increased industrial and consumer activity during the holiday season. He expressed optimism that recent adjustments in pricing and market liberalisation would curb cross-border smuggling, helping retain more petrol for domestic use. “We hope this price adjustment or liberalisation will discourage cross-border smuggling of the product, meaning that more petrol will stay within the country,” he stated. He also projected a potential decline in consumption levels but indicated that a substantial drop is unlikely.
Addressing the conference theme, Ahmed highlighted the importance of partnerships in the sector. According to him, shared facilities could boost efficiency and reduce expenses for both businesses and consumers, contrasting with the inefficiencies of underutilised private depots. “Collaborations or alliances among stakeholders will lead to greater efficiency and lower costs for consumers,” he affirmed. Ahmed added that partnerships across agencies like NMDPRA, Nigerian Maritime Administration and Safety Agency (NIMASA), and Nigeria Ports Authority (NPA) could mitigate operational inefficiencies, while industry players in oversaturated markets could explore alliances to enhance efficiency. He concluded that NMDPRA remains committed to evaluating project viability for consumer benefit, restating that a collaborative approach is essential for a sustainable energy future in Nigeria.