The Minister of State for Petroleum Resources, Sen. Heineken Lokpobiri, has
directed petroleum marketers to immediately reflect the recent decline in global
oil prices by reducing the pump prices of Premium Motor Spirit (PMS) and
other petroleum products.
Lokpobiri gave the directive at the 2026 Nigerian Midstream and Downstream
Petroleum Regulatory Authority (NMDPRA) General Counsel and Legal
Advisers Forum on Monday in Abuja.
The forum is themed “Beyond Compliance Certainty and Investment
Confidence in Nigeria’s Petroleum Sector.”
Lokpobiri said that with the de-escalation of tensions between Iran and the
United States, there was an expectation that the prices of PMS and other
petroleum products would be adjusted downward accordingly.
He expressed concern that the anticipated reduction had yet to be reflected at the
pumps, stressing that while market forces under the deregulated regime would
ultimately restore price equilibrium, marketers should not exploit the situation
to make excessive profits.
The minister said the regulator had a statutory responsibility to ensure that
deregulation did not become an avenue for profiteering, adding that this must be
carried out in line with the provisions of the Petroleum Industry Act (PIA 2021).
“For too long, the dominant question in our regulatory conversations has been:
are operators complying? That question matters. It will always matter. But it is
no longer sufficient.
“The more consequential question today is this: are our regulatory authorities
doing their job? Is it clear, consistent and predictable enough to give investors
the confidence they need to commit capital, not just for one cycle, but for the
long term?
“Compliance is the foundation. Regulatory certainty is the ceiling we must now
be building toward,” he said.
Lokpobiri, while urging marketers to comply with the principles of fair pricing
to ensure that consumers benefit from the prevailing market realities, urged
regulators to move beyond compliance by promoting regulatory certainty to
attracting long-term investments.
“The sector is now fully deregulated, a bold reform that President Bola Tinubu
had the courage to implement. That decision paved way for the
operationalisation of the Dangote Refinery and other refinery projects currently
underway.
“You can attest to the fact that since 2023 there has been availability of products
in country even with the recent challenges posed by the US-Israeli /Iranian
conflict.
“Beyond allowing prices to be determined by market forces, the question is:
what is the regulator doing to ensure that consumers receive the correct quantity
of product?
“When someone pays for 10 litres of PMS, they should receive exactly 10 litres,
not less,” he warned.
Lokpobiri said while compliance with regulations remained fundamental,
investors were increasingly interested in jurisdictions with clear, consistent and
predictable regulatory frameworks.
He described general counsel as strategic partners whose responsibilities extend
beyond interpreting laws to shaping investment decisions, improving regulatory
design and supporting national development.
According to him, legal advisers should provide constructive feedback
whenever regulations or guidelines create uncertainty that could discourage
investment.
He said Nigeria’s petroleum sector was entering a new phase characterised by
expanding domestic refining capacity, increased private sector participation and
emerging opportunities across the midstream and downstream segments.
According to him, attracting investments will require policy consistency,
transparent regulation, efficient dispute resolution and strong collaboration
among government, regulators, industry operators and legal practitioners.
He expressed confidence that the recommendations from the forum would
contribute to improving governance, regulatory certainty and investment
confidence in Nigeria’s petroleum sector.