President Tinubu Takes Steps to Resolve Regulatory Clash in Nigeria’s Petroleum Industry

Clearing Regulatory Ambiguity

President Bola Tinubu has issued a memo seeking to establish clear lines of demarcation between the responsibilities of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA). The move aims to resolve the ongoing clashes between the two regulatory bodies in the country’s petroleum industry. The president emphasized the need for clarity while pending amendments to the Petroleum Industry Act (PIA) by the National Assembly.

Exclusive Responsibilities

In the memo, President Tinubu delineated the exclusive roles of each agency. The NUPRC will serve as the exclusive technical and commercial regulator for upstream petroleum operations and facilities, including licensing, administration, and monitoring of facilities from extraction to crude export terminals and the gate of natural gas processing plants. On the other hand, the NMDPRA will be responsible for petroleum operations and facilities from the exit of crude export terminals to the entry gate of natural gas processing plants.

Immediate Compliance and Future Solutions

President Tinubu directed both the NUPRC and the NMDPRA to comply with the directives immediately and avoid any duplication of regulatory responsibilities. He stressed the importance of refraining from overlapping functions, particularly in relation to export terminal operations. The president also called for collaboration among key stakeholders to work out modalities and propose solutions, including potential amendments to the PIA, to resolve the regulatory issues. The memo requested the publication of the directives in the Federal Government Gazette.