The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri has warned petroleum marketers and other industry players not to turn the deregulation of Nigeria’s petroleum sector into an excuse for profiteering and exploitation of consumers.
Senator Lokpobiri, gave the warning in Abuja on Monday at the 2026 Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), General Counsel and Legal Advisers Forum.
Lokpobiri said while deregulation had helped to stabilize supply and end the era of artificial scarcity since the removal of price controls in 2023, the policy must not be abused by operators to short-change Nigerians through excessive pricing or dishonest service delivery.
“Deregulation is not a licence for profiteering,” the Minister declared.
He directed the NMDPRA to rise to its statutory responsibility by ensuring that petroleum marketers do not exploit consumers under the deregulated downstream market.
The warning comes amid renewed complaints over the rising retail price of Premium Motor Spirit (PMS), commonly known as petrol, with marketers calling for an urgent stakeholders’ meeting with regulators to address the pricing concerns.
Marketers have argued that current pump prices are largely driven by procurement costs, especially against the background of global market volatility and geopolitical tensions. But Lokpobiri insisted that while market forces must be allowed to work, regulation must also protect consumers from abuse.
According to him, the Petroleum Industry Act, PIA, 2021, provides the legal foundation for a transparent, commercially viable and investor-friendly petroleum sector. However, he said the real test now is whether the law can deliver benefits to both investors and ordinary Nigerians.
He said the regulator must ensure that the gains of reform are not captured by a few operators at the expense of the public.
“When someone pays for 10 litres of Premium Motor Spirit, they should receive exactly 10 litres, not less,” Lokpobiri said, stressing that deregulation must not translate into cheating at the pump or arbitrary price manipulation.
The Minister acknowledged the role of compliance in the sector but said Nigeria must now move beyond mere enforcement to building regulatory certainty.
“Compliance is the foundation. Regulatory certainty is the ceiling we must now be building toward,” he said.
Lokpobiri explained that investors, especially in a volatile global energy market, are attracted to jurisdictions where rules are clear, consistent and predictable. He said Nigeria could not afford a regulatory environment where ambiguity, delays or inconsistent interpretations discourage long-term investment.
He challenged legal advisers and general counsel in the petroleum sector to see themselves not merely as compliance officers, but as key players in shaping investor confidence and sector stability.
Describing them as “architects of investor experience,” Lokpobiri urged them to provide constructive feedback where regulations are unclear, rather than allowing caution or bureaucracy to become an obstacle to progress.
“When the rules are not clear enough, say so, because that feedback is how we improve,” he told participants.
The Minister said the Federal Government had already taken steps to strengthen the petroleum sector through new guidelines, reforms and policies designed to support major investments, including projects such as the Dangote Refinery.
He noted that while prices may eventually adjust as global tensions ease, especially following the de-escalation of tensions between the United States and Iran, regulators must remain vigilant to ensure that consumers are not punished under the cover of deregulation.
Lokpobiri urged the NMDPRA to deepen transparency, improve stakeholder engagement and strengthen service delivery across the downstream sector.
He also called on industry players to uphold high governance standards, comply with regulations and recognise that consumer protection is central to the credibility of the deregulated market.
The NMDPRA General Counsel and Legal Advisers Forum brings together legal heads of licensed operators and officials of the regulator to discuss regulatory practice, compliance, sector development and legal issues affecting the petroleum industry.
Lokpobiri said recommendations and insights from the forum would help shape better policy and improve regulatory outcomes in the sector.