NMDPRA Says 20 Regulations So Far Issued Under PIA
By Stephanie Odiase
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it has issued 20 regulations under the Petroleum Industry Act (PIA) 2021.
This was stated by the Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr. Farouk Ahmed, during the inauguration of the Petroleum Industry Stakeholders Forum (PISF) in Abuja.
He also revealed that the Authority has equally reviewed the Gas Transportation Network Code for improved access to natural gas and operationalized the MDGIF as a catalyst for gas infrastructure development and investments.
The Authority hinted that in line with its strategic policies, it maintains a veritable Inter-agency collaboration with security agencies such as the NSA, DSS, Customs Service, Nigerian Navy and others which has helped to curb sharp practices such as diversion and smuggling of petroleum products.
Ahmed explained that the institutionalization of the Petroleum Industry Stakeholders Forum will help resolve disagreements among critical stakeholders in the oil and gas sector preventing them from snowballing into a major crisis.
The NMDPRA boss further disclosed that the Forum is intended to provide a veritable platform for periodic engagement between critical stakeholders to review the status of the industry, formulate policies, galvanize industry support for policy implementation and deliberate on best actions to resolve emerging concerns.
Additionally, he said the Forum will aid speedy resolution of issues by the policy-making and regulatory bodies thereby helping to mitigate disputes that may otherwise lead to unnecessary and costly litigations or alternative dispute resolutions.
He hinted that the Petroleum Industry Act (PIA) 2021 provided a framework for consultation with stakeholders to ensure business continuity and a competitive investment environment. “Specifically, Section 216 (2) of the PIA provides for consultation with stakeholders before publication and operationalization of applicable Regulations,” he said.
Ahmed maintained that the NMDPRA has demonstrated commitment to this tenet by establishing stakeholder consultation platforms where market situations, operational matters and issues affecting stakeholders are dissected, discussed and in-depth recommendations are made.
“We have taken necessary steps to ensure the evolution of an open, competitive and contestable market in the product supply chain. The full price deregulation of the petroleum products market has enabled the creation of a level playing field which fosters healthy competition and enables investment opportunities,” Ahmed said.
He further argued that the reforms in the oil and gas industry have occasioned adequate supply and distribution of petroleum products in the country, with consumers enjoying competitive prices and value-added services. “The National Energy security has been further enhanced with multiple sources of supply. For the first time in many years, the country witnessed the end-of-year festivities and the beginning of a new year without any supply disruption or product shortages that may have led to fuel queues,” he stated.
Pointing out the importance of the domestic refineries in the prevailing downstream sub-sector, Ahmed said, “The contribution of domestic refineries to national energy supply requirements and participation of other Oil Marketing Companies in product supply have been enhanced.
“Equally, the emerging competitive market environment, the downswing in international market price, appreciation in Naira and multiple sources of supply, continue to encourage steady stability in the pump price of petroleum products nationwide.”
To further support the development of the West African refined fuel market, Ahmed disclosed that the NMDPRA is partnering with the S&P Global Commodity Insights to organize a workshop targeted at creating a robust platform for regional collaborations among oil industry regulators, policy formulation, creation of a trading hub in West Africa and a more transparent West African pricing assessment and benchmarking.
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