Nigeria’s Modular Refinery Sector Attracts $1.2 Billion Investment Surge
Nigeria’s modular refinery sector has attracted $1.2 billion in investment since 2022, driven by streamlined licensing processes and improved regulatory frameworks, according to industry figures.
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) cited data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showing that the agency’s transparent regulatory approach has successfully attracted new investments into refining and distribution.
DAPPMAN Executive Secretary Olufemi Adewole credited the “firm, fair and functional” leadership of the NMDPRA under Engineer Farouk Ahmed for facilitating improved operational efficiency, product availability, and investor confidence in the downstream sector.
The regulatory authority’s intervention and collaboration with NNPC Limited and other stakeholders has significantly reduced fuel scarcity incidents, ensuring consistent nationwide supply. Nigeria has maintained petrol sufficiency in recent times, marking a substantial improvement from previous years.
Notable achievements include a 35% reduction in cross-border fuel diversion through stricter anti-smuggling measures, improved innovation and compliance through the Automated Downstream System, and zero tolerance for adulterated products yielding 98% compliance in major depots.
The success is attributed to the Petroleum Industry Act (PIA) 2021, which empowered the NMDPRA to implement market-driven policies, including downstream sector deregulation and price liberalization to promote a more competitive market environment.
Source: orientalnewsng.com