CPPE Pushes for Local Refining Priority in Oil Sector Revamp

The Centre for the Promotion of Private Enterprise (CPPE) has called on the Federal Government to urgently support domestic refining and align petroleum policies to favour locally refined petroleum products. This comes as the government appoints new heads for key regulatory agencies in the oil and gas sector.

Director of CPPE, Dr Muda Yusuf, emphasized that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) must prioritize domestic refining, aligning with President Tinubu’s Nigeria-First policy and industrialization agenda. “Government policy should clearly favour locally refined petroleum products through targeted fiscal, regulatory, and infrastructural support,” Yusuf said.

The CPPE’s charge follows the appointment of Oritsemeyiwa Eyesan as CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Saidu Mohammed as CEO of NMDPRA.

Yusuf commended President Tinubu for resetting Nigeria’s petroleum regulatory architecture, seeing it as an opportunity to reposition the sector for energy sovereignty and production growth.

Yusuf criticized policy distortions that disadvantage locally refined products, saying, “Genuine competition only exists when all operators function within the same policy, tax, and regulatory environment.” He stressed that supporting domestic refining is vital for job creation, foreign exchange conservation, and macroeconomic stability.

A strong domestic refining base is seen as essential for backward integration and resource-based industrialization, strengthening petrochemical, fertilizer, and allied industries. “Supporting refineries creates broader industrial value chains driving inclusive growth,” Yusuf added.

On upstream operations, CPPE urged measures to boost crude oil and gas production, attracting investments and securing production growth amid global energy transition. “NUPRC should prioritize production growth, investment facilitation, and security, aiming for two million barrels per day,” Yusuf said, emphasizing gas production investment and compliance with domestic crude supply obligations.

These priorities, Yusuf concluded, must define Nigeria’s new petroleum regulatory leadership for sustainable growth and economic resilience.