By Shittu Oluwadamilola
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued a stern warning to individuals and companies operating in Nigeria’s midstream and downstream petroleum sector without the required licences, permits, or authorisations, stating that such operators will face sanctions.
In a public notice dated May 12 and signed by the Acting Chief Executive of the Authority, Abiodun Adeniji, the regulator explained that the Petroleum Industry Act (PIA) was enacted to create clear and comprehensive regulatory institutions for the nation’s petroleum industry.
According to the agency, Sections 29, 31, 32, and 33 of the PIA designate the NMDPRA as the statutory regulator with full responsibility for the technical, commercial, operational, and licensing oversight of all midstream and downstream petroleum operations in the country.
The authority noted that its mandate extends across the federation, including Nigeria’s continental shelf, territorial waters, exclusive economic zone, free zones, export processing zones, industrial zones, and other designated locations.
It listed activities under its regulatory supervision to include refining, processing, storage, bulk transportation, pipelines, gas transportation networks, terminals, jetties, wholesale supply, importation, exportation, distribution, and sale of natural gas and petroleum liquids.
The NMDPRA also clarified that companies operating within free zones and export processing zones are not exempt from compliance with the PIA and regulations issued under the Act.
The notice emphasised that no person or organisation is permitted to establish, construct, operate, or carry out any midstream or downstream petroleum activity without obtaining the appropriate approval from the Authority, as stipulated under the PIA.
The regulator further cited Section 48(1) of the PIA, which mandates government ministries, departments, and agencies to consult with the NMDPRA before issuing regulations, guidelines, enforcement orders, or directives that could affect midstream or downstream petroleum operations.
It added that recommendations from government agencies would be reviewed and decisions communicated, stressing that compliance with such decisions is mandatory.
The NMDPRA also referenced Section 309 of the PIA, which states that where any existing law conflicts with the provisions of the PIA, the Act takes precedence.
The Authority warned that any operator found conducting midstream or downstream petroleum business without proper authorisation would be penalised in line with the relevant provisions of the PIA.
The notice was directed to managing directors and chief executive officers of midstream and downstream oil and gas companies, petrochemical and fertiliser firms, as well as import and export terminal operators, urging them to ensure immediate compliance.
