• NMDPRA establishes most transparent regulatory framework

The Minister of State for Petroleum Resources, Heineken Lokpobiri, yesterday reiterated the federal government’s commitment to ensuring that every barrel of crude oil produced in the country contributes to meeting both domestic and international obligations.
Lokpobiri gave this assurance yesterday in Lagos at the opening ceremony of the Crude Oil Refinery-Owners Association of Nigeria (CORAN) 2025 summit with the theme: “Refinery – Key to Energy Security in Africa.” He was represented by his Technical Adviser, Ndah Adaba.
He said that as part of deliberate policy and broader strategy, the Naira for crude sale agreement will continue to be a major step to reduce cost of fuel production, mitigate the exposure to the fluctuating exchange rate and to generally support indigenous refining.
The minister said that through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the government has streamlined the licensing regime: from Licence to Establish to Construct and Operate — ensuring that genuine investors are supported, not hindered, by bureaucracy.
According to him, Beyond licensing, government has continued to consolidate on facilitating the access to crude oil supply through the effective implementation of the Domestic Crude Oil Supply Obligation (DSCO) because no nation can claim energy independence if it cannot refine its own crude.
Lokpobiri said that under the Renewed Hope Agenda of his President Bola Tinubu, indigenous refining has been identified as a critical pathway to energy independence, job creation, and industrial revitalisation.
“Today, we have seen indigenous success stories such as Dangote Refinery & Petrochemical, Waltersmith Petroman Refinery, Aradel Holdings, etc. which collectively demonstrate that Nigerians have both the capacity and the will to refine Nigeria’s crude oil locally.
“These projects are more than facilities; they are symbols of confidence in our policy direction, and we are committed to replicating them across all oil-producing states,” he added
He said that in the bid to extending refining obligation beyond the shores of this country, the West African Fuel Reference Market was launched to position Nigeria as a regional refining and product supply hub to other West African sub-region.
He added that with increased local refining capacity, Nigeria will not only meet its domestic demand but will also serve as a dependable supplier of refined products to neighbouring countries, thereby reducing the region’s reliance on distant refineries and maritime imports.
“This aligns with the African Union’s vision for energy integration and intra-African trade under the African Continental Free Trade Area (AFCFTA).
Lokpobiri assured that the government will ensure feedstock security for all licensed refiners and also deepen fiscal incentives to attract more investment. The minister said that the government will also foster collaboration among African nations for product exchange, logistics and shared energy infrastructure, maintain that the path to Africa’s energy security runs through the gates of our refineries and its interrelated institution.
He said that the federal government remains fully committed to supporting indigenous refiners, strengthening regulatory institutions, and creating an enabling environment for sustainable downstream growth.
“Let this CORAN Summit 2025 serve as a renewed call – to industry players, regulators, investors, and policymakers to unite in achieving an Africa that refines what it produces and powers its future through its own resources,” he said.
Also speaking at the event, the Authority Chief Executive, Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, said the authority has created Nigeria’s most transparent and predictable petroleum regulatory framework.
Ahmed, represented by the South-West Regional Coordinator of NMDPRA, Ayo Cadoso, noted that the Authority has developed and gazetted 18 key regulations covering every phase of refinery development, from establishment through to operations.
“These regulations were not developed in isolation. They were co-created with industry stakeholders to ensure they are practical, bankable, and investor-friendly. This is what we mean by regulatory certainty — clarity of rules, fairness in enforcement, and confidence in outcomes,” he explained, adding that NMDPRA ensures Naira-denominated crude sales to shield refiners from foreign exchange volatility.
Besides, the Authority’s boss said the organisation is actively facilitating industrial growth.
“We are working across agencies and the entire value chain to guarantee crude oil supply to all licensed refineries through structured nomination and supply mechanisms.”
He added that the authority ensures efficient evacuation and logistics for refined products to reach markets while promoting transparent practices for fair competition.
He added that NMDPRA has accelerated approvals and permits under clear service-level agreements, providing technical and commercial support throughout project lifecycles.
“These initiatives form part of our optimisation framework, which converts regulatory stability into investment confidence and boosts domestic refining capacity,” he said.
Ahmed stressed that investor confidence depends on consistent policy and regulatory integrity.
“Investors must trust that rules will not change midstream and that their returns are secure within a fair market structure,” he noted.
He highlighted major reforms achieved in the past four years, including downstream liberalisation and updated transportation codes to support modern infrastructure.
“These are not mere policy statements — they are actionable goals under our 2025 Refining Acceleration Plan.
“Nigeria’s energy future will be defined by clarity, confidence, and collaboration.
“We are not just refining crude oil — we are refining our economic destiny,” he stated.
Ahmed said that when regulators act with integrity, investors trust the process, and consistent policies can enable Nigeria to power itself and the rest of Africa.
“At NMDPRA, our promise is simple — to regulate with clarity, facilitate with credibility, and lead with courage.
“Today, I speak not just as a regulator but as a firm believer in Nigeria’s capacity to redefine her future.
“For too long, we exported crude and imported refined products — a paradox that weakened our economy. But that story is changing,” Ahmed said.
He acknowledged the transformative impact of the Dangote Refinery and the growing number of licensed modular and conventional refineries.
“Nigeria stands at the threshold of a historic transformation — from dependency to dominance, from importer to net exporter of refined petroleum products,” he said.
According to him, two key pillars will drive this refining revolution — Regulatory Certainty and Investor Confidence.
Ahmed also commended the summit’s engagements, including the Women in Refining session and the keynote dinner on ‘Private Refining as a Catalyst for Energy Security.’
“We reaffirmed that refining is not just a business — it embodies energy sovereignty, economic resilience, and industrial strength,” he said.