NMDPRA unveils regulations to simplify petrol import licensing

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has unveiled proposed regulations for the midstream and downstream petroleum sectors.

Farouk Ahmed, the managing director of the NMDPRA, unveiled the regulations at a stakeholder engagement on October 15 in Abuja.

He said the regulations aim to simplify the process of obtaining petrol import licences and other operational regulations in the industry into a single document.

The NMDPRA boss said the new regulations align with Section 216 of the Petroleum Industry Act (PIA), which mandates consultation with stakeholders prior to the finalisation of regulations under the Act.

Ahmed, represented by Ogbugo Ukoha, the director of distribution system, storage, and retailing infrastructure at NMDPRA, said the defunct Department of Petroleum Resources (DPR) regulations, concerning midstream and downstream operations, have been revoked.

Ahmed said the newly-proposed 2024 midstream and downstream petroleum operations regulations, consolidates 12 of the authority’s earlier gazetted or published regulations into a single document.

“The consolidation process has enabled the authority to reduce complexities of navigating and implementing the authority’s numerous regulations, streamlining operations in the midstream and downstream petroleum regulatory industry, address inconsistencies in the regulatory space; and engender further compliance with the PIA and regulations made thereto,” he said.

Ahmed said the regulations also demonstrate President Bola Tinubu’s commitment to promoting ease of doing business in Nigeria.

He added that the rules would be deliberated on, alongside others made by the authority, including the midstream and downstream petroleum fees regulations, which provide for the prescribed fees for midstream and downstream petroleum activities.

“Once today’s work is completed, we will sit down with the Federal Ministry of Justice, who will review it, cross the ‘Ts’ and dot the ‘Is’, and then the appropriate government office responsible for gazetting regulations will publish it,” he said.

“It is expected that the Midstream and Downstream Petroleum Fees Regulations, following a successful stakeholder consultation and the approval of the Honourable Ministers of State for Petroleum Resources, will soon be published in the Federal Government Gazette.”

Joseph Tolorunse, the authority’s legal adviser, said the objective of the regulations was to consolidate all 16 drafted regulations and streamline them for ease of reference.

“We discovered that having numerous regulations would be burdensome for the industry to follow, but when we consolidate the regulations addressing the midstream and downstream value chains, it will be easier for people to understand and refer to them,” he said.

“The operations regulations govern companies in the midstream and downstream industries, covering activities related to the transportation, loading, and shipment of natural gas, as well as the issuance of licences, making them accessible to the public.”

Tolorunse added that the rules also highlight fines and penalties for breaches.