By Editor
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has insisted that it is imperative for oil companies to adopt regulatory compliance as a critical element of their organizational and business culture.
Authority Chief Executive (ACE), Engr Farouk Ahmed stated this at the general counsel and legal advisers’ forum for midstream and downstream petroleum companies in Nigeria which took place in Abuja. 
While speaking on. ‘NMDPRA advancing a collaborative compliance culture in Nigeria’s midstream and downstream petroleum sectors,’ Ahmed maintained that compliance should not be reactive or be viewed as a business risk but rather as an integral part of business philosophy.
His words: “It is, therefore, imperative for companies to adopt regulatory compliance as a critical element of their organizational and business culture. Compliance should not be reactive or be viewed as a business risk but rather as an integral part of business philosophy. Companies should internalize the fact that regulatory provisions are made to enable businesses sustainability and to facilitate responsible operations.”
He described the forum as a platform where stakeholders share insights for the enhancement of regulatory compliance and effective operations in the sector.
The NMDPRA boss stressed that the oil and gas industry will continue to be a key driver of revenue and a catalyst for industrial growth, energy access, and national development.
He explained that the scope of operations of the sector covers hydrocarbon processing, wholesale marketing, transportation, storage, distribution and retail, saying its complexity requires more than technical efficiency.
He added that the oil and gas sector requires a unified compliance culture rooted in robust and enabling legal frameworks, transparency, accountability, and shared responsibility.
The NMDPRA boss maintained the the role of legal practitioners is critical across the midstream and downstream energy business value chain including the promotion of optimal regulatory compliance to all set rules and standards of operations in the ever-complex operational and volatile market environment.
He expressed hope that strategic and pragmatic solutions will be established at the forum which will enhance the overall performance of the midstream and downstream sector as stakeholders all work towards the creation of shared value for investors and most importantly the extensive market of Nigeria and the West African sub-region.
Engr Ahmed stated that the Authority is grateful for the opportunity that the forum offers for effective collaboration.
“Learned Counsels, the Petroleum Industry Act 2021 has fundamentally restructured Nigeria’s petroleum industry by delineating regulatory responsibilities of our industry into the upstream and the midstream and downstream petroleum operations. The Act prescribes that all operations in the midstream and downstream sector can only be conducted under appropriate licenses, permits and authorizations granted by the NMDPRA and the authority is fully guided by the provisions of the law in providing regulatory oversight
of the Industry,” he said.
He further noted that the PIA mandates the NMPDRA to make regulations concerning midstream and downstream petroleum operations in consultation with its licensees and stakeholders, adding, “we note and thank all of you for your effective participation and contributions in all the stakeholder consultative sessions that we have held over the years. which has led to the issuance of all the regulations that have been gazetted for our sector.”
The NMDPRA chief revealed that as a result of the feedback received from stakeholders on the need to strengthen regulatory compliance through simplified and clearer regulations for the midstream and downstream operations, NMDPRA is implementing an inclusive stakeholder process of streamlining the gazetted and published regulations to mitigate the complexities of navigating and implementing numerous regulations.
According to him, the Authority is also ensuring the elimination of inconsistencies and repetitions across multiple regulations; streamlining regulatory processes for ease of business; and encourage investments in the midstream and downstream petroleum industry.
He urged the forum to critically review and make recommendations on the regulations to enable the Authority improve the overall compliance of operators and the performance of the regulatory instruments – legal frameworks and licenses – in the midstream and downstream sector.
He added: “When we issue regulatory instruments, we require effective compliance. It is compliance with extant provisions of the law that allows continuity of operations and the grant or renewal of licences. We enforce compliance to ensure that operations are conducted safely, the environment and consumers are protected, and fair play is observed in the industry.”
Ahmed argued that it is evident that effective compliance is a result of effective collaboration.
He maintained that collaboration allows for the development of enforceable regulations, best industry practices, and synergy between the multiple stakeholders in the industry including other regulatory agencies and international institutions.
“The NMDPRA has diligently upheld this collaborative approach in all its regulatory activities, and we are proud to assert that our regulatory provisions are very much inclusive, sustainable, and world-class. Indeed, this very engagement we are having today is in continuation of this collaborative regulatory approach. Compliance with regulatory provisions is mandatory and beneficial for all the stakeholders of our Industry. We at NMDPRA assure you of our continued commitment to effective stakeholder collaborations that fosters ease of doing business, investor confidence and sustainable operations,” he said.
