A positive step by government of Ghana to partner with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) with the intention to create a network that will enable both countries monitor and minimise petroleum products smuggling across borders has been roundly applauded by operating entities in Nigeria.
The government had repeatedly complained that petrol from Nigeria was being smuggled to other West African countries, due to it low price in Nigeria as a result of subsidy, when compared to its cost in these nations.
However, in a partnership deal from the government of Ghana, there seems to be a vista of hope that will help to bring sanity into the system.
Ghana has signified interest to start importation of refined petroleum products from Nigeria to boost the country’s energy security and sustain business cooperation with her neighbours.
The chief executive officer (CEO) of National Petroleum Authority of Gnana, Dr. Mustapha Abdul-Hamid, at the opening panel session at the 18th Africa Downstream Energy Week (OTL) in Lagos, with the the theme: “Alliances of Growth,” said the country would take the steps to sign agreement with Dangote Refinery to start importation of products.
This, he said, will end reliance of products import from Rotterdam by Government of Ghana which is more expensive.
Abdul-Hamid, said Ghana has opened key export agreements with her neighbours which include Burkina Faso, Mali and Niger to provide products to international operational facilities especially military facilities operated by the United States of America.
He said in view of the huge investment by Dangoe refinery and volume of refined products from the refinery which will take care of Nigeria’s domestic demand the excess will be exported and Ghana will be will to take much of the products.
He also said his agency is willing to share its product identification marking system with the NMDPRA which he explained has helped to identify stolen products specifically coming from Nigeria.
Abdul-Hamid, during the session shared experiences of how the agency had identified stolen products through marine shipment into Ghana was identified.
The chairperson of the Depot and Petroleum Products Marketing Association of Nigeria (DAPPMAN) Dame Winifred Akpani, and Chief Executive Officer of North-West Petroleum and Gas Company Limited, who moderated the session, welcomed the idea and said though the smuggling of products from Nigeria is as a result of the country’s large landscape but concerted efforts have been made to address the scourge which is already yielding results.
The executive officer of the NMDPRA Farouk Ahmed, agreed that there is the need to expand regional cooperation as Africa pushes for energy transition.
Farouk said the present administration has made bold fiscal reforms to enhance crude oil production and efforts are being made to meet the 3 million barrels daily production.
The NMDPRA boss noted that the downstream industry is key in providing the platform for the country energy transition initiative.
He pointed to ease of doing business and various interventions and incentives of the Federal Government to promote Compressed Natural Gas (CNG) Liquefied Petroleum Gas (LPG) and Liquified Natural Gas (CNG) expansion.
Farouk said the country’s refining sector has been expanding rapidly with the issuance of Nine valid License to Establish (LTEs), Seven (7) License to Construct (LTCs) and Four (4) LTOs for modular refineries.
Dangote Petroleum Refinery and Petrochemical (DPRP) came onstream in February 2024, with production of some petroleum products including AGO, ATK etc.
The refinery commenced production and supply of PMS in September 2024, and it is expected that supply from the Refinery will improve significantly when it is fully completed and licensed.
On gas, he said the sector holds a 16 billion standard cubic feet daily, BSCF/D Licensed processing capacity, 5 BSCF/D licensed transportation capacity and 1.5 BSCFD licensed distribution capacity. Each of the subsector is expanding rapidly alongside the general transformation in the natural gas sector.
The NMDPRA he went on to say, continues to emplace all necessary measures to actualise the full aspirations of the Petroleum Industry Act (PIA).
These include the assurance of quality and safety in the industry, strategic stakeholder engagements, and provision of regulatory support to key government initiatives such as the Decade of Gas and Pi-CNG programs.
Speaking on the OTL conference which focused on “Energy, Synergy and New Beginnings,” he said government has excitedly reviewed the policy direction and the strategic realities of the industry, which include the need for wider collaborations to harness huge potentials of the Africa’s energy resource; addressing the endemic challenge of energy poverty; and the critical need for project financing to bridge the deficit in infrastructure.
This year, the organisers of the conference have adopted the theme ‘Alliances for Growth – Markets, Operations and Policy’. The keyword ‘synergy’ in the previous theme is similar to the keyword ‘alliances’ in the current theme.
This shows the continuing imperative for effective collaborations between the stakeholders of the industry.
He opined that strategic collaborations and alliances are indeed required for the industry to effectively surmount the emerging and conflicting challenges related to climate action, geopolitical tensions, market stability, and ever-growing energy demand.
Within the midstream and downstream sector, strong collaborations are required between regulatory agencies to facilitate ease of doing business, and between businesses to pool resources required for delivering complex projects.
It is also necessary to expand regional collaborations to enhance cross border trade; and for the industry to establish a robust mechanism for sharing of best industry practices and capacity optimisation.
He acknowledged the efforts of Major Energy Marketers Association of Nigeria (MEMAN) in establishing such a centre in Lagos.
The NMDPRA he assured, would work with MEMAN and other stakeholders to explore avenues to extend the services of the center to other midstream and downstream players.
The NMDPRA would also champion the development and adoption of a uniform gas transportation code within West and North Africa, considering the progression of the West African Gas Pipeline (WAGP) to Morocco, for effective movement of natural gas within the regions.
Furthermore, Farouk said the NMDPRA will explore mechanisms of facilitating the establishment of an association for Energy Regulators within West Africa which may eventually integrate with the existing East African and South African regional regulators association, into a pan African Energy Regulators association for streamlined regulations and policy formulations.
“I am glad to announce that plans are already being finalised to establish the Africa Energy Bank, which shall provide the funds necessary to fastrack the growth of energy supply infrastructure for the continent.
“The Africa Energy Bank is a major collaborative success that will assist the continent in its journey towards sustainable and just energy transition.” he said.
On her part the special adviser to President Bola Tinubu on Energy, Mrs. Olu Verheijen, represented by Mrs. Eriye Onagoruwa, said Nigeria boasts an oil and gas sector in operations for over 80 years, but we have only captured about 4 per cent since 2016.
Verheijen said President Bola Ahmed Tinubu’s administration has created a more transformed environment for efficiency and transparency with incentives to promote LNG and CNG equipment, as well as electrical vehicles.
The federal government has invested over $75 million in launching CNG systems to encourage cleaner energy usage.
“We are determined to provide a cleaner cooking option which comes with affordability.
“Nigeria has the capacity to make refineries perform better through collaboration and these alliances are needed to change the outlook of the industry.
“We must continue to have this conversation towards reshaping our oil and gas sector.” she said.
Equally, the governor of Lagos State, Babajide Sanwo-Olu, described the theme of the conference as timely and vital as the country’s journey toward a sustainable, inclusive energy future requires partnerships that drive innovative solutions, empower industries, and enhance the quality of life for all Africans.
Sanwo-Olu said, “Today, we are at a defining moment in Africa’s energy evolution, and Lagos State, as Nigeria’s economic powerhouse, is deeply aware of the critical role energy plays in shaping our collective future.
“Our government is committed to ensuring that Lagos remains a leader in energy innovation, investment, and sustainability. We are not just participants in this journey—we are setting the pace for energy reform and economic growth.”
The governor said through concerted efforts, the swtate has established itself as an environment that welcomes investment, encourages technological advancement, and champions sustainable practices.
He said the state government is taking bold steps toward a cleaner energy future.
From harnessing solar energy for street lighting to building mini-grids and exploring cleaner fuel options for our transportation sector, the government he sisd is paving the way.
“But this vision cannot be achieved in isolation. We need the private sector’s expertise, the innovation of young entrepreneurs, and partnerships with both local and international stakeholders. Together, our collective efforts will drive the kind of innovation that transforms energy across Lagos, Nigeria, and Africa.
“ I am also delighted that Lagos has this platform to present our progress and invite investors into our journey. Our work in Lagos demonstrates our commitment not only to our energy sector but to the dynamism of our people. This exhibition offers a chance to showcase the advantages of Lagos as an investment destination that values sustainability, creates jobs, and fosters inclusive growth.” Sanwo-Olu added.
On his part, Chairman, of MEMAN, Mr. Huub Stokman, said that in a fully deregulated downstream oil market, the cost of service is very important; so there has to be best prices to have an efficient industry.
Stokman, said road accidents involving tankers remain a major logistics impediment and this emphasizes the need for partnerships with the Nigerian Association of Road Transport Owners (NARTO) and other operators.
He also points out that alliances for growth within the industry should include economic approaches for investment, knowledge for human capital development and strategic partnerships.
