Level Playing Mid-Downstream Sectors Will Lower Entry Barriers, Stimulate Industry
By Juliet Ukanwosu
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has said engendering a fair competition in the downstream and midstream sectors of the petroleum industry will lower barriers to entry, diversify the market structure and bring about innovation.
This was stated by the organisation’s Executive Director, Distribution Systems, Storage and Retailing Infrastructure (DSSRI), Ogbugo Ukoha, while speaking at the Nigeria Annual International Conference and Exhibition (NIACE) of the Society of Petroleum Engineers (SPE), in Lagos.
Ukoha pointed out that competition will also improve operational efficiency and service delivery as well as result in fairer and cost-reflective pricing to the benefit of Nigerians.
Citing sections 31, 32 and 33 of the Petroleum Industry Act (PIA) which repeatedly uphold competition as NMDPRA’s overarching priority, he submitted that “All of these are ultimately beneficial to both operators and consumers.”
He assured the SPE that NMDPRA’s regulatory interventions will always strive to align with the statutory outlook in a manner that guarantees the inevitability of the midstream and downstream development.
Ukoha commended the SPE for its dedication to fostering technical knowledge, innovation, and best practices, adding, “Your role in capacity building, research dissemination, and enabling industry linkages is truly invaluable.”
Speaking on the theme of the conference, “Petroleum Industry Value Chain Optimization: The Inevitability of Midstream and Downstream Development,” Ukoha said, the theme is crucial at a time when the oil and gas industry is striving to navigate the evolving landscape of the petroleum industry in Nigeria.
“A liberalized market attracts investments and creates opportunities for diverse market participants to thrive. Investment in pipelines, storage facilities, and refineries is crucial to the increased smooth flow of petroleum products. Sustainable practices and environmental standards are fundamental to industry development. Developing local expertise and enhancing workforce capabilities are critical for long-term industry sustainability,” he said.
He further explained that the PIA mandates the NMDPRA to regulate the mid and downstream to drive resource optimization and ensure energy security which are imperatives for Nigeria’s economic growth, adding that the agency is focused on promoting competition and protecting the interests of all stakeholders, particularly consumers, to achieve its mandates.