Nigeria’s Oil and Gas Reforms Reshape Market

Nigeria’s oil and gas industry is changing under the Petroleum Industry Act.

The reforms are affecting how petroleum products are refined, supplied, transported and sold.

The July 2026 NMDPRA factsheet shows an industry in transition. Domestic refining is growing, but imports remain important. Gas is also becoming more important to the economy.

The NMDPRA regulates refining, distribution, marketing, pricing, competition, consumer protection and infrastructure in the midstream and downstream sectors.

One major change is the relationship between local refining and imports.

Nigeria wants to increase local refining and reduce imports. However, July data showed that domestic petrol supply fell while the country still relied on imported products.

This shows that local refining cannot replace imports immediately.

For now, refiners, importers, storage operators, marketers and regulators must work together.

Industry operators have also called for imports to remain available as a backup. They say this is necessary while local refining capacity continues to grow.

Another major challenge is access to crude.

The government is considering ways to allow producers to supply nearby refineries directly. This could reduce transport and handling costs.

The reforms also cover the gas sector.

Nigeria wants to improve domestic gas supply through stronger supply obligations and proposed crude and gas swap arrangements. The NUPRC says these measures could reduce costs and improve availability.

The NMDPRA is also using digital platforms for licensing, permits, compliance monitoring and market regulation.

This is part of the move towards a more organised and transparent industry.

Local participation is another priority. In July, NCDMB, NUPRC, NMDPRA and industry stakeholders agreed to improve the assessment of local capacity.

The next phase will focus on industrial growth, manufacturing and global competitiveness.

These reforms show that Nigeria’s oil and gas policy is no longer focused only on crude production.

The bigger question is whether the country can build an integrated industry.

Crude must reach local refineries. Refined products must be distributed reliably. Gas must reach power plants and industries. Infrastructure must also be commercially viable.

The July NMDPRA figures show progress, but they also reveal major gaps.

Petrol and LPG stocks remain below the 30-day benchmark. Domestic refineries still face crude supply challenges. Gas infrastructure is also underused.

Nigeria’s oil and gas sector is being rebuilt around a new regulatory and commercial system.

The success of the reforms will depend on whether they deliver reliable supply, stronger local refining, greater gas use, more investment and a more stable energy market for Nigerians.