The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has assured Nigerians that the prices of petrol, diesel and Liquefied Petroleum Gas (LPG) will continue to decline across the country, driven by increased supply, growing competition and sustained private sector investments in the oil and gas industry.
The Chief Executive of NMDPRA, Mr. Saidu Mohammed, gave this assurance on Sunday during an inspection of facilities owned by Aradel Holdings Plc in Ogbele Community, Ahoada East Local Government Area of Rivers State, as part of a three-day operational tour of midstream assets in the state.
According to Mohammed, Nigeria is steadily transitioning towards affordable energy as improved supply dynamics continue to stabilise prices nationwide.
“The more supply we have, the lower the price, and this is already evident as petrol has dropped from about N1,000 to N800 per litre due to competition,” he said.
He explained that the removal of fuel subsidy had allowed market forces to function efficiently, correcting long-standing distortions in the downstream petroleum sector.
“Sustained competition, rather than subsidies, will guarantee adequate supply of petrol and gas at affordable prices for Nigerians,” Mohammed added.
Call for More Refineries, Stronger Midstream Capacity
The NMDPRA boss stressed the urgent need for additional refineries with advanced conversion capacities capable of producing petrol, diesel, fuel oil, naphtha and LPG. He noted that Nigeria’s ambition extended beyond meeting local demand to becoming a major exporter of petroleum products to Africa, Europe and the Americas.
However, he emphasized that domestic needs must first be adequately met.
“Local consumption must be fully satisfied by Nigerian operators before we can embark on large-scale exports,” he said.
Mohammed reaffirmed President Bola Tinubu’s commitment to a free-market economy, recalling that fuel subsidy removal was the president’s first major policy decision upon assumption of office. According to him, the policy unlocked private sector participation and catalysed investments across the oil and gas value chain.
State-Owned Refineries and Local Economic Revival
On the status of state-owned refineries, Mohammed clarified that their operational conditions remained largely under the responsibility of the Nigerian National Petroleum Company Limited (NNPCL). He disclosed that NMDPRA was engaging NNPCL to ensure the steady delivery of crude oil and petroleum products to the Port Harcourt and Warri refinery reserves.
“Restoring product loading activities at these refineries will boost local economies and revive product distribution within host communities. Nigerians will begin to feel the economic impact even before full refinery operations resume,” he stated.
He added that Nigeria’s economic growth depended significantly on the rapid expansion of locally owned midstream assets, noting that facilities inspected during the tour demonstrated Nigerians’ capacity to design, finance, build and sustainably operate world-class energy infrastructure.
Aradel Holdings Showcases Indigenous Capacity
Mohammed singled out Aradel Holdings Plc, describing the company as a strong example of indigenous excellence in the sector. He noted that Aradel had proven that Nigerians could efficiently operate a refinery sustainably without foreign operatorship.
He disclosed that Aradel’s ongoing expansion programme would enable the loading of petrol from its refinery facility before the end of 2027.
“Aradel has supplied gas to Nigeria Liquefied Natural Gas (NLNG) for about 13 years and currently operates an 11,000-barrels-per-day refinery,” Mohammed said.
He further revealed that the company runs a virtual gas pipeline, producing compressed natural gas (CNG) distributed across several parts of Nigeria.
Urging further investments in refining, Mohammed stressed that even the Dangote Refinery alone could not meet Nigeria’s domestic, continental and global demand. He described the midstream sector as the country’s strongest driver of economic growth, with the capacity to stimulate manufacturing, power generation, transportation and other productive sectors.
He assured investors that NMDPRA would continue to provide regulatory incentives to attract large-scale investments into the midstream petroleum sector.
Aradel Reaffirms Commitment to Energy Security
Responding, the Managing Director of Aradel Holdings Plc, Mr. Adegbite Falade, expressed appreciation to NMDPRA for its regulatory support and confidence in indigenous operators.
Falade said the company remained committed to expanding refining capacity, commercialising gas resources and eliminating routine gas flaring.
“We are not overwhelmed by rising demand. Aradel is already expanding its refining capacity beyond current levels,” he said.
He added that the company aimed to be a key part of the long-term solution to Nigeria’s energy supply challenges.
“Nigerians should expect continued scaling, increased local value addition and a strong prioritisation of domestic energy needs,” Falade assured.
With growing investments, strengthened regulation and increased competition, industry stakeholders remain optimistic that Nigeria is on a steady path towards energy affordability, sustainability and economic growth.
