Federal Government Directs NMDPRA to Ensure Nationwide Reduction in Petrol Prices
The Federal Government has mandated the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce strict oversight of fuel pricing nationwide and compel petroleum marketers to align domestic pump prices with the recent decline in global crude oil benchmarks. The directive was issued by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, during the NMDPRA General Counsel and Legal Advisers Forum held in Abuja.
Lokpobiri acknowledged that while the downstream petroleum sector operates under a fully deregulated framework, marketers must not exploit the policy to impose unjustified prices on consumers. He noted that public expectation of a reduction in petrol prices had been heightened by the recent easing of geopolitical tensions in the Middle East and the corresponding fall in international crude oil prices. According to the minister, such global price movements should ordinarily be reflected in the domestic cost of Premium Motor Spirit (PMS), yet the anticipated downward adjustment has not materialised.
“Following the de-escalation of tensions between Iran and the United States, we expected to see a commensurate downward adjustment in the prices of PMS and other petroleum products. However, that has not yet happened,” he stated.
The minister reaffirmed that although market forces are intended to determine pricing under deregulation, the regulator retains a statutory duty to prevent market abuse and curb excessive profiteering. He further emphasised that the Petroleum Industry Act (PIA) vests the NMDPRA with adequate legal powers to ensure fairness and safeguard consumer interests.
Lokpobiri also raised concerns regarding fuel measurement practices at retail outlets across the country, instructing the authority to intensify compliance monitoring to ensure consumers receive the exact volume of fuel for which they pay. He underscored the importance of metering integrity, stating, “When someone pays for ten litres of Premium Motor Spirit, they should receive exactly ten litres, not less.”
The minister commended the resilience of Nigeria’s downstream sector amid recent geopolitical uncertainties, noting that the country had avoided significant fuel shortfalls largely due to deregulation and growing domestic refining capacity. He described the PIA as a cornerstone of oil and gas sector reform, but cautioned that sustained investor interest would depend on the consistency and transparency with which the law is administered. He stressed that investors assess not only policy frameworks but also the predictability and stability of the regulatory environment.
Lokpobiri urged legal advisers and regulatory officials to prioritise investment facilitation and business enablement over procedural bottlenecks. “We will not be judged by the number of regulations we produce or the volume of guidelines we issue. We will be judged by the investments we attract, the businesses we enable, the jobs we create, and the value we leave behind for future generations,” he asserted.
In his remarks, NMDPRA Chief Executive Officer Rabiu Umar affirmed that the petroleum sector has reached a pivotal stage where transparency, certainty, and investor confidence are essential for sustained growth. He noted that while regulatory compliance remains important, the overarching objective is to cultivate a stable and predictable investment climate. Umar added that the implementation of the PIA has shifted the focus from mere legislative enactment to delivering tangible confidence to market participants.
The Secretary and Legal Adviser of NMDPRA, Joseph Tolorunse, also underscored the necessity of regulatory certainty for long-term industry development, observing that stable fiscal policies and minimised policy reversals would bolster Nigeria’s competitiveness in the global oil and gas landscape.
Meanwhile, petrol prices have continued to register marginal adjustments across major depots in Lagos, Port Harcourt, Calabar, and Warri, as marketers respond to evolving market conditions and supply-side dynamics.