Addressing Regulatory Flops in Oil Downstream

Stakeholders in the midstream and downstream sector of the Nigerian oil and gas industry have stressed the need for a strong regulatory leadership that will implement policy reforms and guide the behaviours of all participants in a fair, professional and competitive manner in line with best global industry practices. They also want a regulator that will enable investments in infrastructure modernisation to ensure the distribution of fuels in a safer manner, Peter Uzoho reports

Nigeria’s downstream oil and gas sector is currently at an inflection point, with the impact of deregulation becoming more visible as competition grows. Bigger players are emerging such as the Dangote Refinery which now has a major influence in what happens in the petrol supply and distribution space. The development has reinforced the call for a strong, effective and fearless regulator that will moderate the actions of all participants to save the market from being hijacked by any one player at the detriment of other competitors and the consumers. 

Downstream stakeholders have also emphasised the importance of value creation, transparency, and fairness in the sector, with a focus on creating a customer-first agenda and supporting refineries to ensure sustainability and growth.

These were some of the views of the industry players, who spoke at the just–ended Nigeria International Energy Summit (NIES) 2026, which brought together industry leaders, regulators, refiners, and marketers to discuss the transformation of Nigeria’s downstream petroleum sector into a platform for domestic value creation and regional leadership. 

The panel session on, “Driving Domestic Value: Transforming Petroleum Downstream Market and Refining,” moderated by foremost petroleum economist, Prof. Wumi Iledare, highlighted the need for collaborative leadership, policy reform, and infrastructure modernization to achieve energy security and drive growth.

The speakers agreed that the energy sector has the potential to drive economic growth and development in Nigeria, but requires a more collaborative approach to address the challenges facing the sector. 

They concede that industry stakeholders must work together to create a conducive environment for investment, promote transparency and fairness, and drive growth and energy security.

With the right policies and infrastructure in place, the speakers believe that Nigeria’s energy sector can become a major driver of economic growth and development, creating value for local communities and promoting regional integration. 

According to them, the opportunity is there, and it’s up to industry stakeholders to seize it.

Reviving Pipeline Infrastructure 

In his submission, Group Managing Director of Rainoil Limited, Dr. Gabriel Ogbechie emphasized the need for the revival of pipeline infrastructure and fair pricing of petroleum products to drive growth in Nigeria’s energy sector. 

He stressed that pipeline vandalism and theft must be addressed through intelligence-driven monitoring and stronger legal frameworks. 

Ogbechie also highlighted the importance of cooperation between local refiners and downstream marketers to ensure sustainable progress.

“The downstream sector is currently experiencing significant disruption as it adjusts to a new operating reality. If oil is being produced locally, it is important that everyone prioritises what is produced locally,” he said. 

He noted that Nigeria has moved away from an era when fuel scarcity was a recurring national challenge, driven largely by non-functional refineries and total dependence on imported petroleum products. Ogbechie criticized Nigeria’s heavy reliance on road transportation for fuel distribution, describing it as economically unsustainable and damaging to national infrastructure. He urged renewed investment and operational focus on pipeline transportation to reduce reliance on trucks and move products over shorter distances.

“For me, the issue is not just about building new refineries, but also about ensuring that the existing ones are operating efficiently,” Ogbechie said. 

He emphasised the need for a more proactive approach to energy development, with industry stakeholders working together to drive growth and achieve energy security.

Ogbechie also highlighted the importance of creating a level playing field for all industry stakeholders, ensuring that everyone has access to the same opportunities and resources. He noted that this would help to promote competition, drive innovation, and ultimately benefit the Nigerian economy.

Africa’s Industrialisation 

Contributing to the discussion, the Head of Strategy, Dangote Industries Limited, Mr. Aliyu Suleiman emphasized that value addition was at the core of Dangote Industries Limited’s business, with the company’s refinery aimed at driving Africa’s industrialisation. 

He cited the Group’s plans to double the refinery’s capacity to meet growing demand in West Africa and serve as a hub for the region.

“Value addition is something that is at the core of our business. We want to build businesses that leverage Africa’s resources and add value to those resources and create jobs on the continent,” Suleiman said. 

He noted that the current refinery is able to meet Nigeria’s demand for PMS, and has surplus for export.

Suleiman highlighted the potential for Nigeria to become a major player in the regional energy market, with the refinery’s capacity to process crude from across the continent. 

He emphasised that Dangote is committed to supporting Nigeria’s energy security and driving economic growth.

“We are not just building a refinery, we are building a business that will create value for Nigerians and Africans,” Suleiman said. 

He noted that the refinery will create employment opportunities, stimulate economic growth, and contribute to the development of the region.

Suleiman also emphasized the importance of creating partnerships and collaborations to drive growth and achieve energy security. He noted that Dangote is committed to working with industry stakeholders to promote the development of Nigeria’s energy sector.

Collaborative Approach

In his comments, the Executive Vice President, Downstream, Nigerian National Petroleum Company Limited (NNPC), Mr. Mumuni Dagazau emphasized the need for the company to think outside the box and explore new opportunities for value creation. 

He highlighted the importance of pipeline deliveries for fuel and the need to modernise infrastructure to reduce costs and increase efficiency.

“For us in NNPC, it’s about the last mile. It’s not just about where we can get fuel. It’s how much fuel can we get fuel there. How much value can we create by getting fuel at a cheaper cost?” Dagazau said. 

He noted that NNPC is investing in condensate refineries and exploring new opportunities for growth.

Dagazau emphasized the need for sustainability and long-term planning in the energy sector, highlighting the importance of creating value for future generations. He called for a more collaborative approach to energy development, with industry stakeholders working together to drive growth.

“We need to think about the future of energy in Nigeria and how we can create a sustainable energy sector,” Dagazau said. He noted that NNPC is committed to driving growth and achieving energy security in Nigeria.

Dagazau also highlighted the importance of creating an enabling environment for investment and growth. He noted that NNPC is working with industry stakeholders to promote the development of Nigeria’s energy sector and create opportunities for investment.

Downstream Localisation 

In her intervention, the Group Managing Director of Techno Oil, Mrs. Nkechi Obi stressed the need for Nigeria to take charge and show leadership in the region to achieve energy security and drive growth.

She emphasised the importance of localising the downstream sector and creating an enabling environment for businesses to thrive.

“We must be able to take charge, show leadership in the country. Show leadership in Africa. So that we’ll be able to inspire the world. We’ll be able to benefit our communities,” Obi said. 

She noted that Nigeria has the potential to become a major player in the regional energy market, but requires policy support and infrastructure development.

Obi called for a more proactive approach to energy development, with industry stakeholders working together to drive growth and achieve energy security. She emphasized the importance of creating value for local communities and promoting economic development.

“We need to create an environment that is conducive to investment and growth,” Obi said. She noted that Techno Oil is committed to driving growth and achieving energy security in Nigeria.

Obi also highlighted the importance of creating partnerships and collaborations to drive growth and achieve energy security. She noted that Techno Oil is working with industry stakeholders to promote the development of Nigeria’s energy sector and create opportunities for investment.

Entrenching Transparency, Fairness

The Chairman of Major Energies Marketers Association of Nigeria (MEMAN) and Managing Director of NNPC Retail Limited, Mr. Huub Stokman emphasized the need for transparency and fairness in the downstream sector, with a focus on creating a customer-first agenda. 

He called on the regulator — the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to play a proactive role in ensuring rules-based regulation and transparency.

“NMDPRA can help us to create a customer-focused, customer-first agenda in Nigeria, which I truly believe, and we truly believe, can transform the downstream sector and deliver value to the market,” Stokman said. He noted that transparency and fairness are essential for creating trust and confidence in the energy sector.

Stokman highlighted the importance of data sharing and collaboration between industry stakeholders to drive growth and achieve energy security. He emphasized that a more collaborative approach is needed to address the challenges facing the energy sector.

Support for Local Refineries 

Also sharing his thoughts, the Chairman of Crude Oil Refiners Association of Nigeria (CORAN) and OPAC Refineries, Mr. Momoh Oyarekhua emphasised the importance of refineries in driving economic development and creating value. 

He called for support for refineries to ensure their sustainability and growth, highlighting the potential for modular refineries to unlock trapped crude in the Niger Delta.

“Refineries actually drive the wheels of this nation. I’m sure everyone that came here today came with a car, and you had to put oil in that car. And the question is where is that oil coming from? It’s coming from the refinery,” Oyarekhua said. 

He noted that refineries are critical for promoting economic development and creating value.

Oyarekhua emphasized the need for a more proactive approach to energy development, with industry stakeholders working together to drive growth and achieve energy security. He called for policy support and infrastructure development to unlock the potential of Nigeria’s energy sector.