The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has assured Nigerians that fuel and gas prices will continue to fall nationwide, attributing the trend to increased supply, rising competition, and sustained private sector investments in the energy sector.
The Authority’s Chief Executive, Mr Saidu Mohammed, made the disclosure on Sunday in Ogbele community, Ahoada East Local Government Area of Rivers State, during an inspection of Aradel Holdings Plc facilities.
Mohammed explained that improved supply is gradually making energy more affordable for Nigerians. “The more supply we have, the lower the price. This is already evident as petrol has dropped from about N1,000 to N800 per litre due to competition,” he said.
He added that the removal of fuel subsidies had allowed market forces to operate efficiently, boosting the downstream sector. “Sustained competition, rather than subsidies, will ensure adequate supply of petrol and gas at affordable prices for Nigerians,” Mohammed said.
Highlighting the need for additional refining capacity, he called for more facilities capable of producing diesel, fuel oil, naphtha, LPG, and petrol. He noted that Nigeria aims not only to meet domestic energy needs but also to export petroleum products to Africa, Europe, and the Americas. “However, domestic demand must first be satisfied by local operators before large-scale exports can begin,” he said.
Mohammed praised President Bola Tinubu’s free-market policies, noting that the subsidy removal, the administration’s first major policy decision, had unlocked private sector participation and stimulated investments across the oil and gas value chain.
On state-owned refineries, he said operational management remains largely with the Nigerian National Petroleum Company Limited (NNPCL). NMDPRA is engaging NNPCL to ensure crude and petroleum product deliveries to the Port Harcourt and Warri refineries, which would boost local economies and enhance distribution in host communities. “Once product loading resumes, Nigerians will begin to feel the economic impact, even before full refinery operations,” he added.
During his three-day tour of Rivers State, Mohammed noted that facilities like Aradel Holdings demonstrate Nigeria’s capacity to design, finance, build, and operate world-class energy infrastructure. Aradel, he said, had successfully operated a refinery and supplied gas to Nigeria Liquefied Natural Gas (NLNG) for over 13 years.
The NMDPRA boss disclosed that Aradel’s ongoing expansion would enable petrol loading from its refinery by the end of 2027. The company also runs an 11,000-barrels-per-day refinery and a virtual gas pipeline distributing compressed natural gas to various parts of the country.
He urged further private investments in refining, noting that the Dangote Refinery alone cannot meet domestic, continental, and global demand. Mohammed described the midstream sector as a key driver of Nigeria’s economic growth, capable of stimulating manufacturing, power generation, transport, and other productive industries. He assured that NMDPRA would continue offering regulatory incentives to attract large-scale investments into the sector.
Responding, Aradel Holdings Managing Director, Mr Adegbite Falade, thanked NMDPRA for its support and reiterated the company’s commitment to expanding refining capacity, commercialising gas, and eliminating routine gas flaring.
“We aim to contribute to long-term solutions for Nigeria’s energy supply challenges. Nigerians should expect continued scaling, local value addition, and prioritisation of domestic energy needs,” he said.
