Nigeria may have recorded an estimated N6 trillion gain from reforms in the downstream petroleum sector within the first nine months of 2025.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) disclosed this at the ongoing Nigerian International Energy Summit (NIES) in Abuja, noting that decades of heavy petroleum product importation had imposed significant economic losses on the country.

Speaking at the summit, the agency’s Chief Executive, Engr. Saidu Mohammed, said the government is prioritising domestic refining and working towards sourcing 100 per cent of Nigeria’s petroleum product needs locally.

“For decades, the downstream sector has been associated with negatives — inadequate infrastructure and suboptimal supply chains. That narrative is changing. The downstream is becoming more market-driven and is gradually attaining the stability required to attract investment,” Mohammed said. He attributed the N6 trillion gains to the cumulative impact of full downstream deregulation, increased gas utilisation and the sale of petroleum products in naira.

He stated: “In just nine months of 2025, Nigeria has gained about N6 trillion by reducing losses previously incurred through importation.”

He added that the reforms have helped conserve foreign exchange and reposition the energy sector as a net contributor to foreign exchange earnings rather than a drain on national reserves.

The NMDPRA chief also highlighted the growing role of natural gas in Nigeria’s energy transition, describing the gas sector as an emerging pillar of domestic energy supply and regional exports.

Under the Federal Government’s Decade of Gas initiative, he said policies are being implemented to build infrastructure, stimulate demand and create a commercially driven gas market capable of attracting investment across the value chain.

“What we need is to add value to the gas we have, not just transport or export it raw. Nigeria should be a hub for refined gas products. There is no reason we should not be exporting urea, ammonia and fertilisers,” he stated.

Mohammed stressed that effective regulation remains central to sustaining investor confidence, noting that project viability must be established before permits are issued.

“We cannot approve projects for approval’s sake. Every project – even a retail filling station – must align with Nigeria’s strategic energy and economic planning,” he said.

According to him, the downstream revival cannot be funded by public resources alone, adding that inefficient product transportation methods must give way to modern pipeline-based distribution anchored around refinery hubs.

“That is why we are developing a strategy where pipelines originate from refinery hubs such as Dangote, Port Harcourt and others. This will replace ageing infrastructure and realign flow directions where old corridors are no longer viable,” he added.