The Federal Government has revealed that Nigeria reduced losses from fuel imports by more than ₦6 trillion in the first nine months of 2025, citing rising domestic refining output, lower petrol imports, and reforms in the foreign exchange market as key drivers.
Speaking at the 2026 Nigerian International Energy Summit (NIES) in Abuja, Saidu Mohammed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), highlighted the transformative impact of policy reforms under the Petroleum Industry Act (PIA). He noted that deregulation, harmonisation of the forex market, increased gas usage, and trading crude and petroleum products in naira had significantly reduced Nigeria’s reliance on imported fuel.
Brandspur Business News Desk reports that Mohammed emphasised the rapid expansion of domestic refining capacity, led by the 650,000 barrels per day Dangote Petroleum Refinery, which now meets a substantial share of domestic petroleum demand. He added that with ongoing projects and rehabilitation of NNPC-owned refineries, Nigeria’s total refining capacity could reach over 1 million barrels per day in the medium term.
The NMDPRA chief also highlighted the growing role of natural gas in powering economic diversification, stressing that investments in gas infrastructure, supply, and demand development were positioning it as a cleaner, cost-effective alternative for power, transport, and industry. He added that sustained sector growth would depend on credible regulation, transparent institutions, and predictable enforcement to attract long-term private capital.
Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, urged International Oil Companies (IOCs) to boost crude production, noting the government’s target of 2.5 million barrels per day by 2027. He underscored that upstream performance directly affects downstream operations, stressing collaboration between indigenous and foreign producers under a level regulatory framework.
NNPC GCEO Bayo Ojulari attributed Nigeria’s 2025 financial crisis to over-projection of crude output in the national budget. He clarified that while the budget anticipated 2.06 million bpd, actual production averaged around 1.7 million bpd, creating a revenue gap. Ojulari assured that current upstream and downstream strategies are focused on building sustainable, profitable refining and petrochemical operations.
Also weighing in, NNPC Upstream EVP Udobong Ntia noted that the energy sector is moving beyond capital attraction toward prioritising high-yield projects, ensuring judicious investment and long-term profitability.
The government’s concerted efforts in refining capacity expansion, regulatory reform, and strategic investments in gas and crude production signal a new era of fiscal efficiency and energy sector sustainability in Nigeria.
