NMDPRA's Price Cap Plan Threatens to Worsen Nigeria's Fuel Crisis, Stakeholder Warns

Festus Osifo, a former president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and current President of the Trade Union Congress (TUC), has warned that the Nigerian Midstream and Downstream Petroleum Regulatory Authority's (NMDPRA) plan to cap petroleum product prices could worsen the country's fuel crisis.

Osifo made this statement at a Lagos event, arguing that a liberalised market with more refinery investors would bring down fuel prices sustainably rather than relying on price controls.

The TUC president emphasized that increased competition in the sector would naturally lead to lower prices, making Nigeria a more attractive destination for downstream investment.

Osifo also called for an increase in crude oil production from its current level of about 1.8 million barrels per day to between three and four million barrels per day within the next three to ten years, citing Nigeria's estimated crude reserves of between 30 billion and 38 billion barrels.