Mr. Farouk Ahmed, the Chief Executive Officer of NMDPRA, shared this information during the 18th Africa Downstream Energy Week held in Lagos, as reported by the News Agency of Nigeria (NAN).
Ahmed noted that an increase in petrol consumption is common in the fourth quarter, especially during the holiday season, driven by heightened industrial and consumer activities.
He expressed hope that recent price changes and market liberalization would help mitigate cross-border smuggling, thereby ensuring a greater supply of fuel remains within Nigeria.
“We hope this price adjustment or liberalisation will discourage cross-border smuggling of the product, meaning that more petrol will stay within the country,” he said.
Additionally, Ahmed mentioned that while there may be a slight decrease in petrol consumption, a substantial drop is not anticipated.
In discussing the event's theme, Ahmed underscored the importance of partnerships within the energy sector to improve efficiency and lower costs. He pointed out that shared facilities are more advantageous than having multiple underutilized private depots, benefiting both businesses and consumers.
“Collaborations or alliances among stakeholders will lead to greater efficiency and lower costs for consumers,” Ahmed said.
He also highlighted that cooperation among agencies such as NMDPRA, the Nigerian Maritime Administration and Safety Agency (NIMASA), and the Nigeria Ports Authority could help address operational inefficiencies. Ahmed clarified that while the agency will not enforce mergers, it encourages industry players to consider partnerships in saturated markets to improve operations and provide better value to consumers.
“With strategic alliances in place, we can reduce costs for consumers by making the most of our existing infrastructure,” he said.
He confirmed that NMDPRA will persist in evaluating the viability of projects to ensure that consumers gain from market advancements.
Ahmed emphasized that cooperation and operational effectiveness are crucial for achieving a sustainable energy future in Nigeria.
In the wake of the fuel subsidy removal, there have been reports indicating a general decline in petrol consumption among Nigerians.
The downstream regulatory body, NMDPRA, has not published any updates since August of the previous year regarding the current status of petrol consumption in the country.
Meanwhile, President Bola Tinubu has indicated that petrol consumption has decreased to approximately 30 million liters per day following the subsidy removal.
In a related matter, the Dangote Refinery, which began petroleum production in September, highlighted that Nigeria can now effectively monitor its petrol consumption. The refinery noted that this oversight will assist in reducing smuggling into neighboring nations.