The Federal Government has urged stakeholders in Nigeria’s petroleum industry to strengthen monitoring of fuel dispensing and pricing, expressing concern that some operators are using petroleum sector deregulation in Nigeria as a cover to exploit consumers.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made the call on Monday in Abuja at the 2026 Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) General Counsel and Legal Advisers Forum.
He said the downstream sector is now fully deregulated under the Tinubu administration oil policy, which has also enabled the operation of the Dangote Refinery and encouraged additional refinery investments currently underway.
Lokpobiri stressed that regulators must ensure strict market oversight so that consumers receive fair value for their purchases. He warned against under-dispensing fuel and unjustified price increases.
“When someone pays for 10 litres of Premium Motor Spirit (PMS), they should receive exactly 10 litres, not less. Furthermore, 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,” he said.
He added that while market forces are expected to stabilise prices over time, regulators must ensure that petroleum sector deregulation in Nigeria does not become a tool for profiteering. According to him, enforcement must align with the provisions of the Petroleum Industry Act (PIA).
The minister also called on legal advisers in the sector to ensure operators comply fully with regulatory requirements to avoid sanctions. He noted that Nigeria’s oil industry is entering a new phase, driven by expanding domestic refining capacity and increasing private sector participation.
Lokpobiri further emphasised the need for investor confidence, saying policy stability, transparent regulation, and efficient dispute resolution are critical to attracting long-term investment. He urged regulators to improve service delivery and strengthen engagement with industry stakeholders.
He said sustaining confidence in the sector is a shared responsibility among government, operators, and legal professionals, especially as opportunities expand across the midstream and downstream value chain.
Also speaking, the Authority Chief Executive of NMDPRA, Farouk Ahmed Umar, said the legal forum was created to improve regulatory effectiveness and industry compliance. He explained that the Petroleum Industry Act 2021 has reshaped the sector by introducing new institutions, frameworks, and responsibilities.
Umar noted that five years after the implementation of the PIA, attention has shifted from legislation to execution, with focus on how regulations function in practice and how markets respond to ongoing reforms.
He said the goal remains to build a petroleum industry defined by transparency, stability, and investor confidence to support Nigeria’s wider economic ambitions.
