The Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has introduced new, consolidated regulations for obtaining petrol import licences and overseeing petroleum operations.
This move aims to simplify the regulatory landscape in the sector by merging various guidelines into a single document, while simultaneously revoking the outdated rules of the defunct Department of Petroleum Resources (DPR).
The 2024 Midstream and Downstream Petroleum Operations Regulations are designed to address complexities within the sector, enabling the Authority to streamline the implementation of numerous industry rules.
This regulatory overhaul seeks to enhance compliance with the Petroleum Industry Act (PIA) and make it easier for businesses to navigate Nigeria’s petroleum industry.
At a stakeholder engagement held in Abuja, the NMDPRA Managing Director, Farouk Ahmed, represented by Mr. Ogbugo Ukoha, Director of Distribution System, Storage, and Retailing Infrastructure, highlighted that the event complied with Section 216 of the PIA.
This section mandates stakeholder consultations before regulations are finalised.
Ahmed revealed that the new regulations would consolidate 12 of the Authority’s previously gazetted or published rules.
“The consolidation process helps resolve inconsistencies in the regulatory environment and demonstrates our commitment to promoting the ease of doing business in Nigeria,” he stated.
Ukoha also noted that the regulations will be read alongside others, such as the Midstream and Downstream Petroleum Fees Regulations, which detail the prescribed fees for related activities.
He added, “Once this process is complete, the Federal Ministry of Justice will review the draft and, following government approval, the regulations will be officially published.”
The Authority’s Legal Adviser, Dr. Joseph Tolorunse, provided further insight into the consolidated regulations, explaining that the aim is to reduce the burden of numerous, disjointed rules on the industry.
“By consolidating these regulations, the industry can more easily understand and adhere to the requirements covering midstream and downstream operations,” Tolorunse said.
He also outlined that the regulations would govern activities such as the transportation, loading, and shipment of natural gas, while detailing penalties for non-compliance.
The updated rules include provisions related to licensing, permits, and authorisations, ensuring that all regulatory aspects under the PIA are harmonised.
These newly proposed regulations, once approved, are expected to be published in the Federal Government Gazette, marking a significant step in regulatory reform for Nigeria’s petroleum sector.
