Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has emphasised the significance of compliance within the oil and fuel sector, notably within the midstream and downstream operations.
The Authority made the emphasis on the Basic Counsel and Authorized Advisers Discussion board for the Oil and Fuel Midstream and Downstream operators in Nigeria held in Abuja on Monday.
Themed “Advancing a Collaborative Compliance Tradition in Nigeria’s Midstream and Downstream Petroleum Sectors”, the discussion board introduced collectively stakeholders within the trade, aimed to reinforce regulatory compliance and efficient operations within the sector.
Talking on the occasion, the NMDPRA Chief Govt Officer (CEO), Engr. Farouk Ahmed represented by the Govt Director, Distribution Programs, Storage and Retailing Infrastructure, Ogbugo Ukoha mentioned this 12 months’s version of Basic Counsel and Authorized Advisers Discussion board for the Oil and Fuel Midstream and Downstream operators in Nigeria revolves round sharing insights for enhancing regulatory compliance and efficient operations within the sector.
He highlighted the vital function of authorized practitioners in selling optimum regulatory compliance throughout the midstream and downstream power enterprise worth chain.
He famous that the Petroleum Business Act (PIA) 2021 has basically restructured Nigeria’s petroleum trade, delineating regulatory duties into upstream and midstream and downstream petroleum operations.
Ahmed emphasised that each one operations within the midstream and downstream sector can solely be carried out beneath applicable licenses, permits, and authorizations granted by the Authority.
To strengthen regulatory compliance, the CEO mentioned that the Authority is implementing an inclusive stakeholder course of to streamline gazetted and revealed laws.
He mentioned: “The function of authorized practitioners is vital throughout the midstream and downstream power enterprise worth chain within the promotion of optimum regulatory compliance to all set guidelines and requirements of operations in our complicated operational and risky market surroundings.
“I’m certain that strategic and pragmatic options might be established from this discussion board that shall improve the general efficiency of the Midstream and Downstream sector as all of us work in the direction of the creation of shared worth for our buyers and most significantly the in depth market of Nigeria and the area. The Authority is grateful for the chance that you’ve given it to collaborate with you thru this platform.
“The Petroleum Business Act 2021 has basically restructured Nigeria’s petroleum trade by delineating regulatory duties of our Business into the Upstream and the Midstream and Downstream Petroleum operations. The Act prescribes that each one operations within the midstream and downstream sector can solely be carried out beneath applicable licenses, permits and authorizations granted by the NMDPRA and the authority is totally guided by the provisions of the legislation in offering regulatory oversight of the Business.
“The PIA additionally mandated the NMPDRA to make Rules regarding midstream and downstream petroleum operations in session with its licensees and stakeholders and we be aware and thank all of you in your efficient participation and contributions in all of the stakeholder consultative classes that we’ve got held through the years which has led to the issuance of all of the laws which have been gazetted for our sector.
“On account of the suggestions obtained from our stakeholders on the necessity to strengthen regulatory compliance by simplified and clearer laws for the Midstream and Downstream operations, NMDPRA is implementing an inclusive stakeholder strategy of streamlining the gazetted and revealed laws to mitigate the complexities of navigating and implementing quite a few laws; remove inconsistencies and repetitions throughout a number of laws; streamline regulatory processes for ease of enterprise; and encourage investments within the midstream and downstream petroleum trade.
“Once we challenge regulatory devices, we require efficient compliance. It’s compliance with extant provisions of the legislation that enables continuity of operations and the grant or renewal of licences. We implement compliance to make sure that operations are carried out safely, the surroundings and shoppers are protected, and truthful play is noticed within the trade.
“Compliance with regulatory provisions is obligatory and useful for all of the stakeholders of our Business. It’s subsequently crucial for firms to undertake regulatory compliance as a vital factor of their organizational and enterprise tradition.
“Compliance shouldn’t be reactive or be seen as a enterprise threat however somewhat as an integral a part of enterprise philosophy. Corporations ought to internalize the truth that regulatory provisions are made to
allow companies sustainability and to facilitate accountable
operations.
“We at NMDPRA guarantee you of our continued dedication to efficient stakeholder collaborations that fosters ease of doing enterprise, investor confidence and sustainable operations”.
Delivering a lecture titled “Laws as an Enabler of Compliance, Funding, and Sector Progress: The Position of the Nationwide Meeting in Strengthening the Submit-PIA Petroleum Panorama” on the occasion, the Deputy Speaker of the Home of Representatives, Rt. Hon. Benjamin Okezie Kalu represented by the Chairman, Home Committee on Petroleum Sources (Downstream), Hon. Ikenga Ugochinyere that the PIA has caused important enhancements within the petroleum trade, together with over $16 billion in funding commitments, 1.69 million barrels per day in oil manufacturing, and ₦50.88 trillion in income era.
He mentioned: “Simply two years post-enactment, the influence of the PIA is simple. We’ve witnessed an astonishing $16 billion in funding commitments, a staggering 28,991% enhance from our pre-PIA baseline of a mere $0.055 billion in 2020. These aren’t simply numbers; they characterize jobs, infrastructure, and a renewed sense of function for our nation’s most significant financial engine. And critically, our Oil Manufacturing in December 2024 reached 1.69 million barrels per day.
“It’s with immense satisfaction that I can state that Nigeria emerged because the main vacation spot for oil and fuel investments in Africa in 2024, accounting for 3 out of 4 Remaining Funding Choices introduced by international oil and fuel majors. This isn’t by probability; it’s a direct consequence of the PIA’s meticulously crafted, investor-friendly provisions.
“This influx of capital is a vote of confidence in Nigeria’s petroleum sector
and a validation of the Nationwide Meeting’s diligent work on the PIA.
“The influence of the PIA on sector development is vividly evident in Nigeria’s oil manufacturing restoration and its subsequent contribution to our nationwide economic system. Our oil manufacturing reached 1.69 million barrels per day in November 2024, a major milestone marking the very best stage in 44 months. This can be a dramatic turnaround from the sector’s earlier decline, the place manufacturing had plummeted by 23% between 2020 and 2022. We aren’t simply recovering; we’re surging ahead.”
Presenting a paper on “Aligning the Authorized Advisory Position with Regulatory Mandates and Operational Realities within the Midstream and Downstream Petroleum Business”, the NMDPRA Secretary and Authorized Adviser, Dr Joseph Tolorunse mentioned authorized advisers have to be accustomed to the licence regime beneath the PIA.
“Authorized advisers should perceive the licence regime beneath the PIA. They’ve varied licences beneath the PIA. Don’t be mistaken, there are over 17 sorts of licences beneath the PIA that exist inside the mainstream and outsourced area. So, authorized advisors should perceive the penal licence regime beneath the PIA.
“Authorized advisers are inspired to combine different peaceable decision into their inside insurance policies, contracts, agreements, and peaceable administration processes.
“Authorized advisers have to be accountable for monitoring and reporting involving laws. Advising have to be made in compliance, somewhat than reactive response. Partaking authorized advisers and taking part in trade session and supporting the federal government in relations and coverage and advocacy. This strategy ensures that companies aren’t solely compliant, but additionally tailored to coverage developments”, he mentioned.
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