NMDPRA’s Chief Executive, Saidu Mohammed, made the announcement on Sunday during an inspection of Aradel Holdings Plc facilities in Ogbele community, Ahoada East Local Government Area of Rivers State.
Mohammed said the reduction in fuel prices is already visible, noting that petrol prices have fallen from around ₦1,000 to ₦800 per litre due to competitive market dynamics. He attributed the trend to increased supply, stronger competition, and sustained private sector investments in the oil and gas industry.
“The more supply we have, the lower the price, and this is already evident as petrol has dropped from about N1,000 to N800 per litre due to competition,” he said.
Subsidy Removal, Market Forces and Price Stability
The NMDPRA boss said the removal of fuel subsidy has allowed market forces to operate effectively, improving efficiency in the downstream sector. He emphasized that sustained competition, rather than subsidies, will ensure adequate supply of petrol and gas at affordable prices for Nigerians.
He also called for more refineries with advanced conversion capacity to produce diesel, fuel oil, naphtha, LPG, and petrol, stressing that Nigeria’s goal is not only to meet domestic needs but also to export petroleum products to Africa, Europe, and the Americas.
“However, domestic demand must first be adequately met by local operators before large-scale exports can commence,” he said.
Focus on Local Refineries and Midstream Expansion
Mohammed said the operational status of state-owned refineries remains largely the responsibility of the Nigerian National Petroleum Company Limited (NNPCL). He noted that NMDPRA is working with NNPCL to ensure crude oil and petroleum products are delivered to the Port Harcourt and Warri refineries.
He said resuming product loading at the refineries will boost local economies and revive product distribution in host communities, even before full refinery operations are restored.
The NMDPRA boss also highlighted the importance of rapid expansion of locally owned midstream assets to drive Nigeria’s economic growth.
During his operational tour across Rivers State, Mohammed praised Aradel Holdings for demonstrating that Nigerians can design, finance, build, and sustainably operate world-class energy infrastructure.
He disclosed that Aradel’s expansion plans would enable petrol loading from its facility before the end of 2027. The company currently operates an 11,000-barrel-per-day refinery and has supplied gas to Nigeria Liquefied Natural Gas (NLNG) for over 13 years. It also runs a virtual gas pipeline that distributes compressed natural gas across several regions.
Private Sector Commitment
Aradel Holdings’ Managing Director, Adegbite Falade, thanked NMDPRA for its regulatory support and reiterated the company’s commitment to expanding refining capacity, commercialising gas, and eliminating routine gas flaring.
“We are not overwhelmed by rising demand, as the company is already expanding its refining capacity beyond current levels,” he said. “Aradel aims to be part of the long-term solution to Nigeria’s energy supply challenges. Nigerians should expect continued scaling, local value addition and prioritisation of domestic energy needs.”
Mohammed assured that NMDPRA would continue providing regulatory incentives to attract large-scale investments into the midstream sector, which he described as Nigeria’s strongest driver of economic growth.