Petroleum industry forum will minimise litigations
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has enacted 20 regulations under the Petroleum Industry Act (PIA) 2021.
Authority Chief Executive (ACE), Engr Farouk Ahmed, who stated this during the inauguration of the Petroleum Industry Stakeholders Forum (PISF) in Abuja, 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 our 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 curbed sharp practices such as diversion and smuggling of petroleum products.
ACE stressed that the institutionalization of the Petroleum Industry Stakeholders Forum (PISF) will help resolve disagreements among critical stakeholders in the oil and gas sector before they snowball into a major crisis, Authority Chief Executive (ACE), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr Farouk Ahmed has said.
The NMDPRA boss, who stated during the inauguration of the Forum in Abuja, 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.
Ahmed further highlighted that 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 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.
Since its establishment, Ahmed said the NMDPRA has taken deliberate and proactive actions to protect and grow the industry, in line with the aspirations and provisions of the PIA 2021, adding, “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.”
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 said.
The NMDPRA chief noted the importance of the domestic refineries to the new lease of life prevailing in the downstream sub-sector.
“The contribution of domestic refineries to national energy supply requirements and participation of other Oil Marketing Companies (OMCs) 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, he 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.
Ahmed insisted that in the refining sector, Nigeria is steadily re-emerging as a major supply hub.
“The biggest single train refinery in the world, the Dangote Refinery, the four NNPCL refineries are gradually being restreamed to ramp up production, our modular refineries are upscaling both in capacities, utilization and in numbers. With these, Nigeria is already a net exporter of some petroleum products with the target of all petroleum commodities. The NMDPRA will continue to facilitate this aspiration to become reality,” he stated.
The NMDPRA helmsman stressed that the NMDPRA has taken careful measures to ensure consumer protection in line with PIA requirements. This is to protect citizens from exploitative tendencies and unwholesome practices by the sector participants.
Ahmed noted that the industry is not without unique challenges saying, “However, some challenges still exist that we need to address. These include the establishment and operation of petroleum handling facilities without proper licences, permits and authorizations. Poor collaborations for open/third party access to facilities and lack of cooperation of some operators for effective regulatory oversight in line with PIA provisions.”
