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In a move aimed at strengthening quality control and curbing the circulation of substandard products, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is planning a network of nine petroleum-product testing laboratories, with the first facility expected to be launched before the end of this year.
The Authority Chief Executive, Mr Rabiu Abdullahi Umar, disclosed this at the OTL Africa Downstream Energy Week in Lagos on Monday, where he outlined a series of regulatory measures to improve transparency, market efficiency and investment in Nigeria’s petroleum industry.
Umar said the authority was also working towards establishing a national reference laboratory, which would provide a benchmark for testing petroleum products and help strengthen confidence in product quality across the downstream market.
The proposed laboratory network comes as Nigeria’s petroleum market undergoes significant changes following the expansion of domestic refining capacity and the increasing importance of competition in determining product prices and supply.
Beyond quality assurance, the NMDPRA chief said the authority was developing measures to improve access to regulatory services, including a digital licensing system that would enable operators to obtain licences and complete relevant processes electronically without necessarily visiting its offices.
He said the reforms were intended to make regulation more efficient, predictable and transparent, while reducing administrative bottlenecks that could discourage investment in the sector.
Umar also disclosed that the authority was working to improve the availability of petroleum-market data, including information on fuel consumption across states.
He acknowledged the need for more reliable data on how much petroleum products are consumed in different parts of the country, explaining that better information would support more effective supply planning and a clearer understanding of market demand.
According to him, transparency in the publication of market information is essential to ensuring that operators, investors and consumers have a clearer picture of developments in the industry.
The authority is also seeking to strengthen the use of published criteria in the management of import licences and other regulatory processes, while maintaining room for competing sources of supply.
Umar said energy security should not be defined solely by domestic production, but should also include diversity of supply, explaining that import channels must remain open and competitive where necessary to protect market stability.
He noted that Nigeria had not experienced nationwide petroleum-supply disruptions in the preceding couple of years, but stressed that sustaining market stability would require continued regulatory oversight, competition and access to reliable information.
The NMDPRA chief further highlighted the need to develop a credible regional reference-price system for refined petroleum products, arguing that African markets needed pricing mechanisms that better reflected regional demand, supply and logistics costs.
He said comparable product specifications and reliable pricing references would help improve cross-border trade, strengthen market confidence and support the development of an integrated West African petroleum market.
Umar also called for greater investment in petroleum infrastructure, including pipelines, storage facilities and gas distribution networks, to improve the movement of products and expand access to energy.
He said the authority would continue engaging industry stakeholders to ensure that regulatory decisions were transparent, predictable and responsive to the needs of operators and consumers.
The reforms, he added, were intended to build a downstream petroleum industry capable of attracting investment, supporting industrial activity and providing more reliable energy supplies.
