The Federal Government says Nigeria saved over ₦6 trillion in fiscal and foreign exchange losses within the first nine months of 2025. Officials attribute the gains to sweeping reforms in the downstream oil sector.
The Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, disclosed this on Wednesday in Abuja. He spoke at the 2026 Nigeria International Energy Summit, which focused on regulation, investment, and market confidence.
According to him, Nigeria is steadily reducing its reliance on imported petroleum products. At the same time, the country is scaling up domestic refining and preparing for exports.
Deregulation and Forex Reforms Deliver Results
Ahmed said full deregulation of the downstream sector played a central role in the savings. In addition, the harmonisation of the foreign exchange market reduced distortions. The government also encouraged crude and product sales in naira, alongside stronger incentives for the gas sector.
As a result, Nigeria cut more than ₦6 trillion in import-related losses between January and September 2025.
For years, Nigeria had depended almost entirely on imported petrol, despite being a major crude oil producer. However, the current policy direction seeks to end that model. The government now aims to move from full import dependence to self-sufficiency. Eventually, it plans to position Nigeria as a net exporter of refined products.
Domestic Refining Expands
Ahmed said local refining capacity is improving. Consequently, Nigeria now meets a growing share of its fuel demand at home. This shift has eased pressure on foreign exchange reserves.
He noted that the revival of state-owned refineries remains a priority. Meanwhile, regulators have issued licences to new private refineries. Together, these efforts form the backbone of the downstream reform agenda.
Beyond the domestic market, Nigeria is targeting regional exports. West Africa and other African markets offer strong demand for refined products.
Furthermore, Ahmed said the Petroleum Industry Act has strengthened the sector’s commercial structure. Pricing now reflects market conditions more closely. Therefore, supply distortions and recurring fuel shortages have declined.
He stressed that investors need clarity and predictability. Without stable rules, long-term investment cannot thrive.
Gas Strategy and Infrastructure Push
In addition to liquid fuels, the government is expanding gas utilisation. Gas supports power generation, industrial growth, and cleaner transport fuels. Therefore, it remains central to Nigeria’s long-term energy strategy.
Ahmed said Nigeria should export more value-added gas products, such as fertiliser and ammonia, rather than raw resources. This approach would boost revenue and industrial output.
However, challenges remain in petroleum logistics. Product transportation is still inefficient in many areas. To address this, the government is promoting refinery-linked pipeline networks. The plan relies heavily on private sector funding.
Ahmed added that regulators now tie project approvals to clear commercial logic. Projects must also align with Nigeria’s strategic energy goals. In his view, regulation should support investment, not slow it down.
“Markets flourish when rules are clear, and institutions are credible,” he said.
Finally, he called for stronger collaboration among government agencies, investors, operators, and consumers. Sustained cooperation, he noted, will help Nigeria consolidate recent gains and strengthen its position as a leading energy player in Africa.