The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reports that the country’s daily petrol consumption is between 45 million and 50 million litres. This information is provided by NMDPRA’s Chief Executive Officer, Mr. Farouk Ahmed, during the 18th Africa Downstream Energy Week in Lagos.
Ahmed indicates that an increase in petrol consumption during the fourth quarter is common, particularly due to heightened industrial and consumer activities around the holiday season. He expresses confidence that recent price adjustments and market liberalization will help reduce cross-border smuggling, thus keeping more petrol within Nigeria.
He comments, “We hope this price adjustment or liberalisation will discourage cross-border smuggling of the product, meaning that more petrol will stay within the country.”
While Ahmed anticipates a slight decline in petrol consumption, he does not expect a significant reduction. He underscores the importance of collaboration within the energy sector to improve efficiency and reduce costs, advocating for shared facilities over numerous underutilized private depots to benefit both businesses and consumers.
“Collaborations or alliances among stakeholders will lead to greater efficiency and lower costs for consumers,” Ahmed notes. He adds that partnerships among agencies, such as NMDPRA, the Nigerian Maritime Administration and Safety Agency (NIMASA), and the Nigeria Ports Authority, are essential to addressing operational inefficiencies.
Ahmed clarifies that while NMDPRA will not enforce mergers, industry players are encouraged to seek partnerships in saturated markets to optimize operations and enhance value for consumers. “With strategic alliances in place, we can reduce costs for consumers by maximizing our existing infrastructure,” he states.
He assures that NMDPRA will continue to assess project viability to ensure consumers benefit from market developments.
In related news, following the removal of fuel subsidies, there are indications of a general decline in petrol consumption in Nigeria. However, the NMDPRA has not published updated consumption reports since August of the previous year. President Bola Tinubu has mentioned that petrol consumption has decreased to approximately 30 million litres daily post-subsidy removal. Additionally, the Dangote Refinery, which began production in September, highlights that improved monitoring of petrol consumption will assist in curbing smuggling into neighboring countries.
