There are 10 regulations to be newly implemented to enhance investment.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in a bid to bequeath the petroleum industry with laws and policies that will enhance investment, has started the review of the midstream and downstream petroleum regulations. The revelation was made by the Minister of State for Petroleum Resources, Chief Timipre Sylva, on August 1st, 2022, at the NMDPRA stakeholders’ consultation forum on regulations where he also stated that the regulations had been discussed with stakeholders for review and input.
The regulations are; the Petroleum (Transportation and Shipment) Regulations, Assignment and Transfer of License and Permit Regulations. All together, there are 10 regulations to be considered, and they are; Midstream and Downstream Petroleum ( Operations) Regulations, Gas Pricing Domestic Demand and Delivery Regulations, Petroleum Pipeline Regulations, and Natural Gas Pipeline Tariff Regulations, while others are Environment Regulations for Midstream and Downstream Operations, Midstream and Downstream Decommissioning and Abandonment Regulations, Environmental Remediation Funds Regulation, and Gas Infrastructure Funds Regulation.
The regulations will help FG achieve present and future goals.
Chief Timipre revealed that as a result of the enactment of the Petroleum Industry Act (PIA) of 2021, the sector became saddled with the responsibility of regulating the mid-and-downstream operations, both technically and commercially. The review, also, was said to be a fulfillment of the provisions of Section 33 and 21 of the PIA 2021. For this reason, NMDPRA is to make consultations with significant stakeholders before the final approval of the regulations, in regards to the processing, transmission, refining, sale, and storage of petroleum products.
Also, with the regulations in place, the government would easily and accurately develop plans that would help to achieve present and future goals. Likewise, it will bring about more investments and create more job opportunities. However, in order to achieve this goal easily, the total participation and engagement of stakeholders in the development of the regulations, processes and procedures are essential, having initiated and issued a proposal of 10 regulations which cover pricing, environmental management, and operations, in accordance with its statutory mandate.
The authority must consult with stakeholders before amendments.
Although the present situation of the country’s local energy landscape is critical, with a pressing need for innovative solutions, the newly proposed regulatory instruments might be an opportunity to amend the situation. The regulations would also give room for clarity and ensure certainty for investors, promoting and building investor’s confidence, likewise increasing and enabling an improvement in foreign and indigenous participation in these sectors. All these in return, will optimize and increase value for all stakeholders.
The Authority Chief Executive, NMDPRA, Mr. Farouk Ahmed, mentioned that the proposed regulations are in alignment with the vision and commitment of the President of Nigeria, Muhammadu Buhari, and the Minister of State for Petroleum Resources. In addition, amidst appreciation for the passage of the PIA, he expressed that Section 216 of the PIA made it compulsory for the authority to have a consultation with stakeholders before proceeding with the amendments and implementation of the regulations.
The regulations will enhance domestic gas value.
A major goal of the regulations is to ensure that they efficiently enable the Federal Government’s Decade of Gas initiative, improving investment, thereby enhancing the domestic gas value. The Chairman Senate Committee on Petroleum (Downstream), Sen. Sabo Mohammed, also stated that the passage of the PIA into law happens to be a milestone in the legislative history of Nigeria. To complement the need for the regulatory instruments, Sen. Philip Aduda, Vice Chairman, said that with the regulations in place, it will be easy for the PIA to unlock the huge potential of the midstream and downstream sector.
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Due to negligence and poor management by our leader, the petroleum industry, which has historically made the largest contribution to our economy, has now turned into a problem for this nation. We can all hope that the regulatory measures that will soon be adopted will help the sector, boost and encourage investment.
Where are the rules and regulations going to. Are they really working at all?
There are alot of extant laws regarding the petroleum industry and still it’s not showing in it’s output. They should ensure this stop and show that they are really working and are ready to do the work.
All the regulation should be adopt is not adopt then what is the essence of setting regulation and all this regulation should show good output. We don’t maintain our petroleum industry wel that why we are suffering from petrol solution should be done to make the petrol easy for people to afford and get
Nigerians are so good at making rules and regulations so far what are the benefits of those rules nothing ,they just need to get it right for once,what’s the problem with setting standards for others to follow,I hope it will truly enhance investment.
It would have been better if people are following the laid down rules and regulations, but since people are not following it and the government are also not enforcing it in people I see no reason why they should keep on making new rules
Since the start of the current administration, our petroleum sector has highly required innovative ways to help address the country’s scarcity and price hike. The new regulations and proposed amendments could be a pathway out of this quagmire and a chance to improve things while also boosting and permitting greater participation in these sectors.
rules and regulations, regulations and rules. Na today we have been hearing so many rules yet nothing is done, all this empty promises everytime. Government that above the law, government that take from us, government that is not democratic but they claim and tell the world that Nigeria practicing democracy Chai.
Government wey no dey keep account
These people are just making unnecessary rules and regulations. These rules are not even making any impact on the sectors everything is just getting worse. They should just work on a way to make things better instead of making unnecessary rules
This is an effort to leave the petroleum business with laws and policies that will make investment more attractive in the future.
No one is above the law they say….In Nigeria the case is different.
So what’s the essence of rules and regulations that the govt are above?
They should work on ways to make things better instead of making rules everytime!
If these new laws can be enacted that will be very good because it will boos our oil sector. Good one from the government.
These new laws will unlock very high potentials for our petroleum industry and will help our economy
the benefits attached to these new regulations are quite attractive, hopefully the government gets to work and it and ensure it is being followed by people
Having regulations in place would make it simple for the government to create plans that would aid in the accomplishment of both current and future objectives.
The regulations’ overarching purpose is to ensure that the Federal Government’s Decade of Gas project may be carried out as effectively as possible.
It will be much simpler to accomplish this objective with the full participation and active engagement of all stakeholders in the process of formulating the regulations.
If the regulations were in place, the government would find it simple and straightforward to design strategies that would contribute to the accomplishment of both immediate and long-term objectives.
It will lead to an increase in the number of investments as well as the prospects for employment.
Because to this move, there will be a rise in the amount of foreign and indigenous people participating in these areas, as well as an improvement in their ability to do so.
This is a great news for Nigeria that if successfully implemented will ease the hardship we are experiencing in this country.
I hope this works out if it is not hijacked by some unscrupulous element. It will greatly benefit our economy if is done in the right way.
I have to question why this government just started doing things in a good directive towards the last 6 months of their tenure. This are steps that should have been talked about a very long time ago and also acted upon. Let’s hope it goes well.