In order to leave the industry with rules and policies that will encourage investment, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has started reviewing the midstream and downstream petroleum legislation.
At the NMDPRA stakeholders' consultation meeting on regulations on Monday in Abuja, Chief Timipre Sylva, the Minister of State for Petroleum Resources, stated that the regulations had been shared with stakeholders for evaluation and input.
The Petroleum (Transportation and Shipment) Regulations and the Assignment and Transfer of Licence and Permit Regulations are two of the ten regulations that need to be taken into account, according to news sources.
Midstream and Downstream Petroleum (Operations) Regulations, Petroleum Pipeline Regulations, Domestic Demand and Delivery Regulations for Gas Pricing, and Natural Gas Pipeline Tariff Regulations are some of the rules.
The Midstream and Downstream Gas Infrastructure Fund Regulations, Environmental Remediation Funds Regulations, Environmental Regulations for Midstream and Downstream Operations, and Midstream and Downstream Decommissioning and Abandonment Regulations are additional.
“We are now at the point of engagement and interaction with a view to issuing regulations that would benefit all stakeholders,” the minister said.
The authority was given the duty of technically and commercially regulating both the mid- and down-stream operations in the industry, according to the minister, with the passing of the Petroleum Industry Act of 2021.
According to him, the evaluation satisfied the requirements of Sections 33 and 216 of the PIA 2021.
According to him, this required the NMDPRA to engage with relevant parties before finalising regulations for the processing, refining, transmission, distribution, supply, sale, and storage of petroleum products, as well as any other things deemed necessary.
“This administration understands the need to have an all-encompassing, well thought-out, and unambiguous regulatory instruments that are painstakingly developed to meet the present and future aspirations of the government.
“The regulations are required to attract much needed investments and create opportunities in the sector; hence the need for stakeholders participation and engagement in developing regulations, processes and procedures.
“Prior to this event, the authority has initiated and proposed ten different regulations which span operations, pricing and environmental management, in line with its statutory mandate.
“Whilst noting that the current state of our local energy landscape is dire and is in need of ingenious solutions, we have an opportunity to ameliorate the situation through these sets of regulatory instruments,” he said.
According to him, the regulations will encourage foreign and domestic participation in key industries, promote and strengthen investor trust, provide clarity and certainty for investors, and maximise value for all stakeholders.
These, he claimed, would add up to business facilitation, industrial expansion, and the creation of numerous possibilities for Nigerians.
In a speech, Mr. Farouk Ahmed, Authority Chief Executive, NMDPRA, stated that this innovation, among others in the PIA, was in line with the goals and dedication of the minister of state and President Muhammadu Buhari.
Ahmed thanked the ninth National Assembly for ensuring the PIA's adoption and noted that the PIA's Section 216 required the authority to "engage with stakeholders prior to finalising revisions to regulations."
However, he claimed that it did not see this as a duty or a checkbox exercise because the basis of its regulatory concept was constant engagement with its stakeholders to support their business.
“Accordingly, our priority will be to ensure these regulations are primary enablers of the Federal Government’s Decade of Gas initiative and will help catalyse investment and enhance the attractiveness of the domestic gas value chain,” the NMDPRA boss said.
Sen. Sabo Mohammed, chairman of the Senate Committee on Petroleum (Downstream), said in a statement that the PIA's enactment marked a turning point in American legislative history.
Sen. Philip Aduda, the committee's vice chairman, spoke on behalf of Mohammed, who stated that it was anticipated that the regulations will support the PIA as secondary legislation by helping to realise the midstream and downstream industry's enormous potential.