The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed that only a little over half of the country’s 256 petroleum product depots are currently operational, citing the removal of petrol subsidies as a major contributing factor.
Engr. Farouk Ahmed, Authority Chief Executive of the NMDPRA, disclosed this during a briefing at the agency’s Abuja office. He explained that the subsidy removal, while fostering competition in the gas market, has also exposed depot owners to severe financial constraints.
“Regarding gas distribution and product depots, there are approximately 256 product depots, but only slightly over 50% of them are currently operational,” Ahmed said.
He noted that the heightened competition has pushed companies to innovate and expand market share — a trend he believes will ultimately benefit the sector.
Ahmed also addressed the volatility in the global oil market, linking it to recent geopolitical shifts.
“The global oil market, and indeed the global economy, has experienced volatility due to the new American government’s policy of tariffs, which are not only targeted at China but also countries worldwide,” he said.
“The most concerning aspect of the market is the inconsistencies in President Trump’s pronouncements, leaving investors and traders in the oil and gas industry uncertain about the future.”
He acknowledged that while global consumers benefit from lower oil prices, Nigeria’s economy suffers from declining revenue.
“In terms of product pricing, consumers of crude oil derivatives are delighted because the price is decreasing. However, when we consider the nation as a whole, this is detrimental to our economy,” he added.
On inter-agency relations, Ahmed clarified the roles of the NMDPRA, NUPRC, and the Nigerian National Petroleum Company Limited (NNPCL).
“There’s a lot of misunderstanding… NNPCL is a commercial arm of the government, while NUPRC and NMDPRA are regulators,” he said.
“NMDPRA regulates the mid and downstream sectors — refineries, gas processing plants, pipelines, depots, trucks, and retail outlets — basically the entire petroleum value chain.”
He also emphasized the Authority’s efforts to deepen gas utilisation across Nigeria as part of the Petroleum Industry Act (PIA) mandate.
“We are moving aggressively to enhance access to gas and other primary fuels through institutional reform,” Ahmed concluded.
