Prioritise Domestic Refining, Production, Economist Urges New Petroleum Sector Regulators

A renowned economist Dr Muda Yusuf has called on Nigeria’s newly appointed petroleum sector regulators to make domestic refining and crude oil production top priorities.

He warned that failure to do so risks deepening the country’s fuel import dependency and economic vulnerabilities.

Yusuf, who is of the Centre for the Promotion of Private Enterprise (CPPE) asked the new chief executive officers for the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to prioritise policies that reduce import dependence, expand domestic capacity, and attract investment in the oil and gas sector.

Yusuf in a note titled, ‘Domestic Refining, Energy Sovereignty and Production Growth Must Define Nigeria’s New Petroleum Regulatory Space’ commended President Bola Tinubu for the recent reset of Nigeria’s petroleum regulatory architecture through the appointment of new CEO for NMDPRA and NUPRC.

Recall that President Bola Tinubu appointed Oritsemeyiwa Eyesan and Saidu Mohammed to replace the previous leaders, Gbenga Komolafe of NUPRC, and Farouk Ahmed of NMDPRA, who resigned in mid-December 2025.

“These appointments present a strategic opportunity to reposition the oil and gas regulatory environment in line with the administration’s commitment to energy sovereignty, energy security, self-reliance and accelerated production growth.”

According to Yusuf, the new leadership of Nigeria’s petroleum regulatory institutions must urgently refocus sector priorities on reducing import dependence, expanding domestic capacity and catalysing investment across the entire oil and gas value chain.

He stated that “in the downstream segment, strong and deliberate support for domestic refining must be an immediate and non-negotiable priority. Government policy should clearly favour locally refined petroleum products through targeted fiscal, regulatory and infrastructural support for both public and private refineries, while actively encouraging new investments in refining capacity.

“Nigeria must end the current distortion whereby imported petroleum products are made to compete with locally refined products under unequal regulatory and fiscal conditions. This does not constitute fair competition. Genuine competition only exists when all operators function within the same policy, tax and regulatory environment.”

Yusuf added that the NMDPRA must place domestic refining at the centre of its policy framework, in line with the President’s Nigeria-First policy direction and industrialisation agenda.

He explained that this was not merely to protect investors, but to safeguard Nigeria’s long-term economic interests, stating that “a strong domestic refining base is fundamental to building a resilient, energy-secure and sovereign economy. It is also critical for job creation, foreign exchange conservation, macroeconomic stability and the development of export-oriented refining capacity.

“More importantly, domestic refining is a major pathway to backward integration and resource-based industrialisation. Supporting refineries strengthens Nigeria’s petrochemical, fertiliser and allied industries, thereby creating broader industrial value chains that drive inclusive growth.”

On the upstream side, Yusuf disclosed that Nigeria must urgently ramp up crude oil and gas production by implementing policies that attract fresh investments across onshore and offshore assets.

He emphasised that this is particularly critical as the global energy transition accelerates. Nigeria must maximise the value of its hydrocarbon endowments while the opportunity still exists.

He also said, the NUPRC should prioritise production growth, investment facilitation and improved security, with a clear national objective of raising crude oil output to a minimum of two million barrels per day through close collaboration with industry stakeholders.

“Expanded investment in gas production must also be a central focus. Ensuring Compliance with domestic crude supply obligations to domestic refineries must be a priority.

“These strategic imperatives must define the direction of Nigeria’s new petroleum regulatory leadership if the sector is to drive sustainable growth, industrialisation, and long-term economic resilience effectively,” he stated.