DAPPMA Highlights Broader Steps Towards Enhancing Nigeria’s Energy Security

By Naija Enquirer Staff

Nigeria’s energy security strategy remains a top priority for the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMA), as the body has reiterated its commitment to sustaining fuel supply nationwide amid ongoing structural changes in the downstream oil sector.

DAPPMA disclosed that its members currently account for about 60 per cent of petroleum products consumed across the country, underscoring the association’s central role in Nigeria’s fuel supply chain.

The petroleum marketing body said it would sustain this contribution in 2026 as part of broader efforts to support national energy security, according to remarks by its Chairman, Mrs. Moroti Adedoyin-Adeyinka.

Speaking during a virtual address at an energy industry event, Adedoyin-Adeyinka described 2025 as a challenging but necessary transition year for the downstream sector. She noted that the period was defined by policy shifts, regulatory adjustments and intensified competition following key reforms.

According to her, while the changes posed significant operational challenges for marketers, they also signalled the gradual emergence of a more competitive and market-driven downstream environment.

Nigeria’s downstream petroleum sector has been undergoing a major reset following the removal of petrol subsidies and the implementation of reforms under the Petroleum Industry Act (PIA). These reforms have reshaped pricing structures, altered supply dynamics and expanded the role of private marketers, while placing greater responsibility on operators to ensure steady fuel availability without government-backed price buffers.

Adedoyin-Adeyinka noted that the market turbulence experienced in 2025 was not unexpected, particularly with the entry of new supply sources such as the Dangote refinery, which has disrupted traditional market share and pricing patterns.

“With anything new, it takes time to settle,” she said, pointing to the multiple moving parts that characterised the year.

However, she observed that by the final quarter of the year, signs of stability had begun to emerge, with competition becoming more evident across supply channels and pricing mechanisms.

She explained that increased competition has delivered tangible benefits to consumers by reducing the risk of prolonged fuel scarcity, even as inflationary pressures and exchange rate volatility continue to push up landing costs for imported petroleum products.

Industry stakeholders have noted that the presence of multiple supply sources and more flexible pricing frameworks has helped to stabilise fuel availability, although price volatility remains a concern for households and businesses.

DAPPMA described its role as critical to national energy security, particularly in a country where fuel shortages have historically triggered economic disruption and social unrest.

The Chairman reaffirmed that DAPPMA would continue to support government efforts aimed at stabilising fuel supply, stressing that energy security remains the association’s foremost priority.

Despite the progress recorded, she acknowledged that Nigeria remains exposed to external shocks, including foreign exchange volatility, shipping costs and fluctuations in global oil prices. She added that until domestic refining capacity fully meets national demand, import-dependent marketers will continue to play a decisive role in shaping market outcomes.

Adedoyin-Adeyinka said the association would continue to work closely with regulators, government agencies and other industry stakeholders to ensure the development of a fully functional downstream petroleum sector.

She also highlighted the need to address long-standing safety concerns in the sector, particularly those linked to the transportation of petroleum products by road.

Fuel haulage accidents, pipeline vandalism and depot fires, she noted, have repeatedly exposed weaknesses in Nigeria’s downstream safety framework, underscoring the need for sustained collaboration and regulatory oversight.