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By Adewale Sanyaolu
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has disclosed that cross-border fuel smuggling has reduced by 35 per cent.
A statement by the Executive Secretary of DAPPMAN, Mr.Olufemi Adewole, attributed the drop in anti-smuggling activities to the price stricter measures introduced by the Nigerian Midstream Downstream Petroleum Regulatory Agency (NMDPRA).
Quoting the Nigerian National Petroleum Company (NNPC) Ltd security report, Adewole further added that improved innovation and compliance enforcement by NMDPRA through the Automated Downstream System (ADS) which is reducing hoarding and illegal sales through real-time monitoring of product distribution; zero tolerance for adulterated products yielding improved fuel quality, with 98 per cent compliance in major depots; and regulatory predictability driving long-term planning and investment is a win for the industry.
He lauded the Petroleum Industry Act (PIA) 2021, saying it has empowered the NMDPRA to implement market-driven policies, including the deregulation of downstream sector and the accompanying price liberalisation and promotion of a more competitive market.
He equally attributed the stability, innovation, energy access and continuing growth in the sector to strategic regulatory oversight by NMDPRA.
DAPPMAN said the “firm, fair and functional” leadership of the NMDPRA’s has facilitated improved operational efficiency, product availability, and investor confidence in downstream sector.
Adewole pointed out that, under the leadership of Mr. Farouk Ahmed, NMDPRA is transforming the sector, adding that DAPPMAN would continue to support and work with the authority to achieve sustainability in the sector and enhance access to world-class energy solutions across the nation.
“DAPPMAN applauds the commitment of the NMDPRA in fostering a competitive market, enhancing energy security, and encouraging innovation as the sector responds to unfolding global oil and gas market challenges and opportunities,” he said.
Adewole said the intervention of the NMDPRA and its collaboration with the NNPC Limited and other stakeholders in the sector has significantly reduced fuel scarcity incidents, ensuring consistent nationwide supply. According to recent reports, Nigeria has maintained petrol sufficiency in recent times, a marked improvement from previous years.
He noted that NMDPRA’s transparent regulatory framework has attracted new investments into refining and distribution, citing the authority’s licensing of modular refineries and compliance enforcement which is currently bolstering private sector participation.
He said streamlining licensing processes has attracted $1.2 billion in modular refinery investments since 2022, going by the NMDPRA Industry Brief, 2024.
“We have seen NMDPRA take Stakeholder Engagement & Compliance to a strategic level and this is driving open dialogue with industry players, ensuring policies align with market realities. We have witnessed an unprecedented reduction in illegal refining and improved product quality through the authority’s enforcement of standards,” he added.
Adewole urged all stakeholders in the downstream sector to join forces with the NMDPRA to make the sector more competitive and shore up the capacity needed for fresh investments, innovation and sustainable energy solutions.
“Overall, DAPPMAN is delighted that the NMDPRA is driving sectoral resilience as their proactive policies on depot operations, and import regulations continue to restore confidence among investors and consumers alike. Ultimately what we need in the sector is sustained collaboration to drive full deregulation and enhanced contribution to the nation’s economic growth and development,” he said.
