The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stepped up efforts to tackle the smuggling and diversion of petroleum products through stronger collaboration with government security and enforcement agencies.
Thid followed a Workshop by the Authority with relevant security agencies as part of efforts to improve surveillance, enforcement and accountability across the petroleum supply chain, at the weekend.
Speaking at the workshop, NMDPRA Executive Director, Distribution Systems, Ogbugo Ukoha, said petroleum product diversion was not only a security concern but also a threat to the integrity and sustainability of Nigeria’s downstream petroleum market.
Ukoha said every litre of petroleum product diverted from its legitimate destination could distort market information, weaken investor confidence and undermine the efficiency of the industry.
He stressed the need for regulators and security agencies to work more closely, noting that physical enforcement alone was no longer sufficient to address the increasingly complex nature of petroleum product diversion and cross-border smuggling.
According to him, the use of data-driven surveillance, combined with stronger cooperation among regulatory, security and enforcement agencies, would improve the ability of government to track petroleum products from their points of supply to their final destinations.
He said such measures would also help authorities identify diversion risks early, strengthen accountability and improve the resilience of the petroleum supply chain.
Ukoha further noted that developments in the international market could create opportunities for petroleum product arbitrage, making smuggling and other forms of illicit cross-border movement more attractive to criminal operators.
He pointed to geopolitical tensions and global market shocks as factors that could alter price differentials and create incentives for the illegal movement of petroleum products across borders.
He emphasised that closer cooperation among relevant agencies would be critical to protecting the integrity of the downstream market and ensuring that petroleum products reach their intended destinations.
The initiative is also expected to strengthen the traceability of petroleum products and support more accurate market data, which are essential for effective regulation, investment decisions and a stable petroleum supply chain.
