NMDPRA Reaffirms Full Regulatory Oversight Across Oil and Gas Operations
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued a fresh directive reinforcing its полном authority over all midstream and downstream petroleum activities across the country, warning operators against bypassing regulatory requirements under any guise.
In a circular sent to managing directors and chief executives of oil and gas companies, petrochemical and fertiliser firms, as well as terminal operators and import/export businesses, the agency restated that it remains the statutory regulator for technical, commercial, operational, and licensing matters in the sector under the Petroleum Industry Act (PIA).
The circular, issued on Monday and signed by Acting Chief Executive, Abiodun Adeniji, emphasised that no operator is exempt from the agency’s oversight, regardless of location or operational structure.
According to the NMDPRA, its mandate covers all petroleum operations nationwide, including activities in territorial waters, the continental shelf, the exclusive economic zone, free trade zones, export processing zones, and other designated industrial areas.
The agency listed regulated activities to include refining, processing, storage, transportation through pipelines, gas distribution networks, terminals, jetties, wholesale supply, importation, exportation, and retail distribution of petroleum products and natural gas.
It specifically cautioned that companies operating within free zones or similar environments cannot assume exemption from compliance with the Petroleum Industry Act or related regulations.
The regulator further stressed that no individual or company is permitted to construct, operate, or run any midstream or downstream petroleum facility without first obtaining the appropriate licence, permit, or authorisation.
Citing Section 48(1) of the PIA, the agency also noted that all ministries, departments, and agencies must consult the NMDPRA before taking any regulatory action that could affect midstream or downstream petroleum operations.
The circular added that where conflicts arise between other laws and the Petroleum Industry Act, the provisions of the PIA will take precedence, as provided under Section 309.
It warned that any operator carrying out petroleum-related activities without proper approval would face sanctions in line with the law.
“The operation of any midstream or downstream petroleum facility within a free zone, export processing zone or similar area does not exempt such facility from compliance with the provisions of the PIA,” the agency stated.
The directive is expected to tighten regulatory compliance across Nigeria’s oil and gas industry, particularly in special economic zones where operators have previously argued for partial exemptions.
