Since 2022, Nigeria has attracted $1.2 billion in new investments into modular refineries, fueled by regulatory reforms that have streamlined processes and made the sector more attractive to private investors.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been praised for implementing stronger oversight, improving transparency, and cracking down on fuel smuggling. These efforts have led to more consistent fuel supply across the country and increased investor participation in the refining and distribution space.

According to the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), illegal fuel diversion has dropped by over 30%, while real-time tracking through digital systems is helping to prevent hoarding and ensure better fuel quality at depots nationwide.

DAPPMAN’s Executive Secretary, Olufemi Adewole, noted that the sector is seeing unprecedented stability and growth, largely due to the NMDPRA’s leadership and the enabling environment created by the Petroleum Industry Act (PIA) of 2021.

He added that these improvements are opening up more job opportunities, enhancing supply reliability, and encouraging new investments that could reduce Nigeria’s dependence on fuel imports.

Industry players are calling for sustained collaboration to ensure the progress continues and the downstream oil sector becomes a major contributor to economic growth and energy security.