KEY POINTS
- NMDPRA warns that firms operating in Nigeria’s midstream and downstream petroleum sector without licences will face sanctions.
- The Petroleum Industry Act empowers the regulator to oversee all petroleum activities, including refining, transport, storage, and distribution.
- All operators, including those in free zones, are required to comply fully with licensing rules or risk enforcement action.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, has issued a strong warning to individuals and companies operating in Nigeria’s petroleum sector without the required licences, permits, or authorisations, stating that such entities will face sanctions in line with the law.
The warning was contained in a formal notice dated May 12 and signed by the agency’s acting chief executive, Abiodun Adeniji. The regulator emphasized that compliance with licensing requirements under the Petroleum Industry Act (PIA) is mandatory for all operators within the midstream and downstream segments of the oil and gas industry.
According to the authority, the Petroleum Industry Act was enacted to create a clear and comprehensive regulatory framework for Nigeria’s petroleum industry. It establishes the NMDPRA as the statutory body responsible for overseeing technical, commercial, operational, and licensing activities within the midstream and downstream segments.
The agency referenced specific provisions of the law, including Sections 29, 31, 32, and 33, which empower it to regulate a wide range of petroleum operations. These provisions reinforce the authority’s mandate to ensure order, safety, and compliance across all stages of petroleum distribution and processing.
Wide scope of regulated activities outlined by authority
The regulator explained that its oversight covers nearly every aspect of midstream and downstream petroleum operations across Nigeria. This includes refining, storage, transportation, pipeline operations, gas distribution networks, terminals, jetties, importation, exportation, wholesale supply, and retail distribution of petroleum products and natural gas.
It further clarified that the regulatory scope extends beyond mainland operations to include activities within territorial waters, the continental shelf, the exclusive economic zone, and designated industrial or export processing zones. This broad jurisdiction is intended to close regulatory gaps and ensure uniform enforcement across all operational environments.
The NMDPRA also made it clear that operations within free zones and export processing zones are not exempt from regulatory compliance. It stressed that all petroleum-related activities in such areas must still comply fully with the Petroleum Industry Act and all subsidiary regulations issued under it.
The authority noted that no individual or organisation is permitted to establish, construct, or operate any midstream or downstream petroleum facility without first obtaining the appropriate licence or authorisation. It warned that any violation of this requirement would attract enforcement action.
The regulator further stated that any government agency involved in issuing approvals or directives that affect petroleum operations must first consult with the NMDPRA before proceeding. This, it said, is to ensure regulatory alignment and avoid conflicting directives within the sector.
It also cited Section 309 of the Petroleum Industry Act, which establishes that where inconsistencies exist between the PIA and any other law, the provisions of the PIA shall prevail.
