Paragraph 1: DAPPMAN’s Commendation of NMDPRA’s Regulatory Oversight
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has lauded the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for its impactful regulatory oversight of the Nigerian petroleum downstream sector. DAPPMAN attributes the sector’s stability, innovation, increased energy access, and continuous growth to the NMDPRA’s strategic interventions. The association specifically highlighted the “firm, fair, and functional” leadership of the NMDPRA, which has facilitated improved operational efficiency, enhanced product availability, and bolstered investor confidence. DAPPMAN expressed its commitment to continued collaboration with the NMDPRA to achieve sector sustainability and expand access to high-quality energy solutions nationwide.
Paragraph 2: NMDPRA’s Role in Fuel Scarcity Reduction and Supply Stabilization
A significant achievement highlighted by DAPPMAN is the NMDPRA’s crucial role in mitigating fuel scarcity incidents across Nigeria. Through collaborative efforts with the Nigerian National Petroleum Company Limited (NNPC) and other stakeholders, the NMDPRA has ensured a consistent nationwide supply of petroleum products. This has led to a marked improvement in petrol sufficiency compared to previous years. The association believes the NMDPRA’s proactive approach to supply chain management and its engagement with key players in the industry have been instrumental in achieving this stability.
Paragraph 3: NMDPRA’s Impact on Investment and Refinery Development
DAPPMAN emphasized the NMDPRA’s successful implementation of a transparent regulatory framework that has attracted substantial investments into refining and distribution infrastructure. The licensing of modular refineries and robust compliance enforcement have encouraged private sector participation and stimulated growth. According to the NMDPRA Industry Brief, 2024, the streamlined licensing processes have attracted $1.2 billion in modular refinery investments since 2022. This influx of investment demonstrates the positive impact of the NMDPRA’s regulatory approach on the development of the refining sector.
Paragraph 4: Combating Fuel Smuggling and Promoting Transparency
The NMDPRA’s efforts to combat fuel smuggling have yielded significant results, with a reported 35% reduction in cross-border fuel diversion, as indicated by an NNPC Security Report. This achievement is attributed to stricter anti-smuggling measures implemented by the authority. Furthermore, the introduction of the Automated Downstream System (ADS) has enhanced transparency and accountability in product distribution, effectively reducing hoarding and illegal sales through real-time monitoring. The NMDPRA’s zero-tolerance policy on adulterated products has also led to improved fuel quality, with 98% compliance recorded in major depots.
Paragraph 5: The Impact of the Petroleum Industry Act and Stakeholder Engagement
The Petroleum Industry Act (PIA) has empowered the NMDPRA to implement market-driven policies, including the deregulation of the downstream sector, price liberalization, and the promotion of a more competitive market environment. DAPPMAN praised the NMDPRA’s strategic approach to stakeholder engagement and compliance, which has fostered open dialogue with industry players and ensured policy alignment with market realities. The authority’s enforcement of standards has also resulted in a significant reduction in illegal refining activities and improved product quality.
Paragraph 6: Call for Collaboration and Sustained Deregulation
DAPPMAN called on all stakeholders within the downstream sector to collaborate with the NMDPRA to enhance the sector’s competitiveness and attract further investments, innovation, and sustainable energy solutions. The association expressed its satisfaction with the NMDPRA’s proactive policies on depot operations and import regulations, which have restored confidence among investors and consumers alike. DAPPMAN underscored the importance of sustained collaboration to drive full deregulation and maximize the downstream sector’s contribution to Nigeria’s economic growth and development.
