Tag: DAPPMAN

  • DAPPMAN calls for infrastructure upgrade to support oil sector

    DAPPMAN calls for infrastructure upgrade to support oil sector

    Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has described the 650, 000 barrels per day Dangote Refinery as a historic step toward ending fuel imports. The group however warned that weak infrastructure could undermine the refinery’s impact.

    DAPPMAN Chairperson, Mrs Moroti Adedoyin-Adeyinka, sounded this warning while appealing to government and other stakeholders in the sector to urgently address the nation’s aging petroleum products pipelines, inefficient ports and infrastructure gaps.

    Adedoyin-Adeyinka , represented by Mrs Ngozi Ekeoma, Group Managing Director of Nepal Energies Limited at the just concluded OTL Africa Downstream Week 2025, made the appeal while delivering her paper on “Trade and infrastructure challenges in Nigeria’s downstream sector.”

    She noted that Nigeria’s pipelines, ports and storage depots need urgent rehabilitation to support new refining capacity and improve supply chain efficiency.

    According to her, most of the country’s pipeline network, built over 40 years ago, suffers from vandalism, under-capacity and poor maintenance.

    She said these problems force marketers to depend heavily on road transport, increasing costs, delaying distribution and exposing products to risks.

    The DAPPMAN leader also identified shallow drafts, congestion and cumbersome customs procedures at ports as barriers to efficient product movement.

    She urged government to digitalise port operations, simplify customs processes and improve turnaround times to boost trade competitiveness.

    Adedoyin-Adeyinka said the Petroleum Industry Act (PIA) 2021 provides a strong foundation for reform through the NMDPRA and the Midstream and Downstream Gas Infrastructure Fund.

    However, she expressed concern over slow implementation, weak coordination and policy delays that create uncertainty for investors and limit sectoral reform. She called for a Downstream Infrastructure Implementation Taskforce within the NMDPRA to fast-track projects, harmonise tariffs, and ensure open access to facilities.

    She emphasised that the PIA must move from paper to practice through transparent tariffs and effective deployment of the MDGIF to close logistics gaps.

    Adedoyin-Adeyinka said new private and modular refineries in several states signal Nigeria’s move toward fuel self-sufficiency.

    She warned that this progress must be supported with strategic investments to prevent future distribution challenges.

    She proposed developing pipelines linking the Dangote Refinery to inland depots, expanding northern storage and building digitalised truck parks for safer operations.

    Read Also: Dangote Refinery can meet Nigeria’s fuel demand, no need for importation – Group

    On regional trade, she called for harmonised product standards within ECOWAS and AfCFTA and the creation of cross-border depots in neighbouring countries.

    She added that aligning infrastructure with refining capacity could position Nigeria as Africa’s leading downstream logistics and energy hub.

    Adedoyin-Adeyinka urged support through infrastructure tax credits, energy bonds and local financing to empower indigenous marketers and logistics operators.

    She said domestic refining marks a turning point for Nigeria’s downstream sector but warned success depends on transparency and regulatory consistency.

    “The end of fuel imports is near. But progress depends on whether our infrastructure and policies match our refining growth,” she said.

    She added that with accountability and urgency, Nigeria could meet its fuel needs and become West and Central Africa’s energy trade hub.

  • DAPPMAN lauds NMDPRA for downstream sector growth

    DAPPMAN lauds NMDPRA for downstream sector growth

    The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has attributed the stability, innovation, energy access and continuing growth in the sector to strategic regulatory oversight by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

    DAPPMAN said the “firm, fair and functional” leadership of the NMDPRA has facilitated improved operational efficiency, product availability, and investor confidence in downstream sector.

    The Executive Secretary, DAPPMAN, Olufemi Adewole, said the NMDPRA under the leadership of Farouk Ahmed, Ann engineer, is transforming the sector, adding that DAPPMAN would continue to support and work with the authority to achieve sustainability in the sector and enhance access to world-class energy solutions across the nation.

    “DAPPMAN applauds the commitment of the NMDPRA to fostering a competitive market, enhancing energy security, and encouraging innovation as the sector responds to unfolding global oil and gas market challenges and opportunities,” he said.

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    Adewole said the intervention of the NMDPRA and its collaboration with the NNPC Limited and other stakeholders in the sector has significantly reduced fuel scarcity incidents, ensuring consistent nationwide supply. According to recent reports, Nigeria has maintained petrol sufficiency in recent times, a marked improvement from previous years.

    He noted that NMDPRA’s transparent regulatory framework has attracted new investments into refining and distribution, citing the authority’s licensing of modular refineries and compliance enforcement which is currently bolstering private sector participation.

    He said streamlining licensing processes has attracted $1.2 billion in modular refinery investments since 2022, going by the NMDPRA Industry Brief, 2024.

    Other notable achievements of the NMDPRA include its price stricter anti-smuggling measures which have reduced cross-border fuel diversion by 35 per cent, according to an NNPC Security Report; improved innovation and compliance enforcement through the Automated Downstream System (ADS) which is reducing hoarding and illegal sales through real-time monitoring of product distribution; zero tolerance for adulterated products yielding improved fuel quality, with 98 per cent compliance in major depots; and regulatory predictability driving long-term planning and investment.

    Lauding the Petroleum Industry Act (PIA) 2021, Adewole said it has empowered the NMDPRA to implement market-driven policies, including the deregulation of downstream sector and the accompanying price liberalisation and promotion of a more competitive market.

    “We have seen NMDPRA take stakeholder engagement and compliance to a strategic level and this is driving open dialogue with industry players, ensuring policies align with market realities. We have witnessed an unprecedented reduction in illegal refining and improved product quality through the authority’s enforcement of standards,” he added.

    Adewole urged all stakeholders in the downstream sector to join forces with the NMDPRA to make the sector more competitive and shore up the capacity needed for fresh investments, innovation and sustainable energy solutions.

    “Overall, DAPPMAN is delighted that the NMDPRA is driving sectoral resilience as their proactive policies on depot operations, and import regulations continue to restore confidence among investors and consumers alike. Ultimately what we need in the sector is sustained collaboration to drive full deregulation and enhanced contribution to the nation’s economic growth and development,” he said.

  • DAPPMAN hails NMDPRA for stability, growth in downstream sector

    DAPPMAN hails NMDPRA for stability, growth in downstream sector

    The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has attributed the stability, innovation, energy access and continuing growth in the sector to strategic regulatory oversight by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

    DAPPMAN said the “firm, fair and functional” leadership of the NMDPRA has facilitated improved operational efficiency, product availability, and investor confidence in downstream sector.

    The Executive Secretary, DAPPMAN, Olufemi Adewole, said the NMDPRA under the leadership of Farouk Ahmed, Ann engineer, is transforming the sector, adding that DAPPMAN would continue to support and work with the authority to achieve sustainability in the sector and enhance access to world-class energy solutions across the nation.

    “DAPPMAN applauds the commitment of the NMDPRA to fostering a competitive market, enhancing energy security, and encouraging innovation as the sector responds to unfolding global oil and gas market challenges and opportunities,” he said.

    Adewole said the intervention of the NMDPRA and its collaboration with the NNPC Limited and other stakeholders in the sector has significantly reduced fuel scarcity incidents, ensuring consistent nationwide supply. According to recent reports, Nigeria has maintained petrol sufficiency in recent times, a marked improvement from previous years. 

    He noted that NMDPRA’s transparent regulatory framework has attracted new investments into refining and distribution, citing the authority’s licensing of modular refineries and compliance enforcement which is currently bolstering private sector participation. 

    He said streamlining licensing processes has attracted $1.2 billion in modular refinery investments since 2022, going by the NMDPRA Industry Brief, 2024.

    Other notable achievements of the NMDPRA include its price stricter anti-smuggling measures which have reduced cross-border fuel diversion by 35 per cent, according to an NNPC Security Report; improved innovation and compliance enforcement through the Automated Downstream System (ADS) which is reducing hoarding and illegal sales through real-time monitoring of product distribution; zero tolerance for adulterated products yielding improved fuel quality, with 98 per cent compliance in major depots; and regulatory predictability driving long-term planning and investment.

    Lauding the Petroleum Industry Act (PIA) 2021, Adewole said it has empowered the NMDPRA to implement market-driven policies, including the deregulation of downstream sector and the accompanying price liberalisation and promotion of a more competitive market.

    Read Also: OPS, MOMAN, DAPPMAN back petrol subsidy removal

    “We have seen NMDPRA take stakeholder engagement and compliance to a strategic level and this is driving open dialogue with industry players, ensuring policies align with market realities. We have witnessed an unprecedented reduction in illegal refining and improved product quality through the authority’s enforcement of standards,” he added.

    Adewole urged all stakeholders in the downstream sector to join forces with the NMDPRA to make the sector more competitive and shore up the capacity needed for fresh investments, innovation and sustainable energy solutions.

    “Overall, DAPPMAN is delighted that the NMDPRA is driving sectoral resilience as their proactive policies on depot operations, and import regulations continue to restore confidence among investors and consumers alike. Ultimately what we need in the sector is sustained collaboration to drive full deregulation and enhanced contribution to the nation’s economic growth and development,” he said.

  • Naira-for-Crude policy risky for FDIs, forex stability, warns DAPPMAN 

    Naira-for-Crude policy risky for FDIs, forex stability, warns DAPPMAN 

    The Naira-for-crude oil transaction framework presents significant risks that could affect Nigeria’s foreign exchange stability and deter Foreign Direct Investment (FDI), the Executive Secretary, Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Olufemi Adewole has said.

    Adewole, who expressed concerns over the volatility of the Naira, emphasised that crude oil transactions are traditionally carried out in dollars due to its stability and global acceptability. 

    He therefore cautioned that failure to align with this international standard could isolate Nigeria from global markets, diminishing trade opportunities and discouraging investment inflows. 

    “The global oil market operates in U.S. dollars due to its stability. Continuing the policy could alienate trade partners and investors who rely on the predictability of the dollar,” he stated.

    The DAPPMAN boss also stressed the need for policies that recognise the unique nature of the oil and gas sector to ensure sustained national competitiveness. 

    He noted that reactionary policies often create skewed economic benefits that primarily favour select industry players rather than the broader economy.

    Adewole asserted that tying crude oil transactions to the Naira could exacerbate these challenges. 

    “The Naira has experienced significant fluctuations over the years, driven by inflation and exchange rate instability. If crude oil transactions are linked to the Naira, these issues will only worsen, potentially triggering capital flight and causing foreign investors to seek alternative markets. This would negatively impact Nigeria’s economic growth, the sustainability of the sector, and the efficiency of the oil and gas value chain,” he said.

    Adewole further warned that Naira-for-crude transactions could place an unsustainable burden on Nigeria’s foreign exchange reserves. 

    Read Also: EFCC arrests two over alleged Naira abuse

    He argued that the Central Bank of Nigeria (CBN) might struggle to maintain currency stability amid insufficient dollar inflows, leading to additional economic strain.

    “It is almost inevitable that implementing this policy could further deplete Nigeria’s foreign exchange reserves. The CBN may find it increasingly difficult to stabilize the Naira due to inadequate dollar inflows. Given that oil transactions have historically been a primary source of foreign exchange, disrupting this mechanism will likely intensify economic pressures,” he explained.

    While proponents of the policy argue that Naira-for-crude transactions could enhance economic sovereignty and strengthen the local currency, he emphasised that policy decisions must prioritise sustainable economic impact.

    “DAPPMAN supports all efforts and policies aimed at strengthening the Naira. However, these strategies must be capable of driving major economic reforms that address the underlying causes of the Naira’s weakness. Nigeria must strike a balance between national interests and global market realities. Economic policies are most effective when they are not shaped by sector-specific demands but rather by long-term economic sustainability,” he said.

    Buttressing his position, Adewole recalled that Venezuela’s unsuccessful attempt in the early 2000s to replace the dollar with its local currency in oil transactions, contributed to severe economic destabilisation of the country.

    Therefore, he cautioned: “Nigeria needs to tread cautiously and learn from historical precedents. Policies that disrupt established international trade norms without adequate safeguards can have unintended consequences. We must ensure that our policies are designed to maximise benefits for all Nigerians.” 

    DAPPMAN, according to Adewole, remains committed to working with regulators and other stakeholders to promote efficiency and seamless access to “reliable, safe, and world-class solutions” in the downstream sector. 

    He reiterated the need for policies that align with international market realities while ensuring long-term economic stability for Nigeria.

    “The future of Nigeria’s oil and gas sector depends on pragmatic policies that facilitate investment, encourage transparent competitiveness, and protect the nation’s foreign exchange reserves.

    By fostering an enabling environment for private-sector participation, Nigeria can achieve a sustainable energy landscape that benefits the economy,” he concluded.

  • Muhydeen Kayode’s benevolence continues in 2024

    Muhydeen Kayode’s benevolence continues in 2024

    In the dynamic realm of Nigerian business and philanthropy with 2024 in view, Alhaji Muhydeen Okunlola Kayode emerges as a distinguished figure, embodying the virtues of exemplary leadership, entrepreneurial acumen, and a commitment to societal upliftment.

    Born on November 15, 1986, Alhaji Muhydeen Okunlola Kayode hails from Kwara state, Nigeria. As the last of seven siblings, he inherited a work ethic instilled by his father, a diligent mechanic, and his mother, a dedicated trader. Armed with determination and a thirst for knowledge, Muhydeen pursued his education, earning a degree in Quantity Surveying from Federal Polytechnic, Offa, and later, from Federal Polytechnic, Nasarawa.

    In 2009, after completing his Ordinary Diploma education, Muhydeen delved into the real estate industry, marking the commencement of a remarkable journey. His entrepreneurial spirit found expression in 2017 when he co-founded Luxiar Construction Limited, a thriving construction company based in Abuja.

    Read Also; CBN gears up for first MPC meeting under Cardoso

    Luxiar Construction Limited, under Muhydeen’s adept leadership, has achieved significant milestones, undertaking prestigious projects such as the Federal Mortgage Bank of Nigeria (FMBN) and the Ministry of Defence Cooperative Society Estate, among others. The company’s portfolio boasts an impressive array of over 3,000 structures, encompassing residential and commercial buildings, as well as critical infrastructure and industrial facilities.

    Beyond his success in the business arena, Muhydeen Okunlola Kayode is equally committed to making a positive impact on society. As the founder and president of the MOK Foundation, named after his initials, he has steered initiatives that extend a helping hand to those in need. The foundation has provided educational and vocational scholarships, spearheaded youth empowerment programs, facilitated micro-credit and financial empowerment initiatives, and engaged in various other humanitarian interventions.

    In his personal life, Muhydeen is a family man, married to Mrs. Ramat Okunlola, and a proud father of two children. Their home in Abuja serves as a testament to the balance he maintains between professional success and familial responsibilities.

    Alhaji Muhydeen Okunlola Kayode stands as a shining example of what can be achieved through dedication, hard work, and a commitment to giving back to the community. His journey from humble beginnings to a leader in the real estate industry and a philanthropist reflects the transformative power of vision and determination. As Nigeria continues to progress, Muhydeen’s story serves as an inspiration to aspiring entrepreneurs and a reminder that true success is measured not only by personal achievements but by the positive impact one makes on the lives of others.