The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reiterated its commitment to strengthening regulatory compliance across the petroleum value chain, emphasizing the need for a unified compliance culture anchored in legal clarity, transparency, and shared responsibility.
Speaking in Abuja at the opening of a two-day General Counsel and Legal Advisers Forum for midstream and downstream companies, the Authority Chief Executive (ACE), Farouk Ahmed, said the forum was aimed at enhancing collaboration between regulators and legal professionals responsible for compliance and operational guidance within the sector.
Represented by the Executive Director, Distribution Systems, Storage and Retailing Infrastructure (DSSRI), Ogbugo Ukoha, Ahmed highlighted the critical role legal practitioners play in promoting optimal adherence to operational rules and standards in Nigeria’s complex energy landscape.
According to him, the forum—an industry engagement platform initiated by the NMDPRA—creates room for policy dialogue, regulatory clarity, and collective problem-solving between the Authority and in-house legal teams of licensed operators.
“The NMDPRA is focused on fostering a regulatory environment where compliance is not just enforced but cultivated through shared values, open communication, and alignment with operational realities,” Ahmed stated.
He noted that stakeholder feedback had revealed a strong demand for simplified, coherent regulations to ease compliance, especially as operators navigate numerous and sometimes overlapping legal frameworks. In response, the Authority is pursuing a streamlined and legislated approach to eliminate regulatory inconsistencies and reduce complexity across the midstream and downstream sectors.
Ahmed further emphasized that effective compliance stems from collaboration—not enforcement alone—and called on legal experts to critically review existing regulatory instruments and recommend improvements to drive performance and investor confidence.
“When we issue regulatory instruments, we expect compliance. It ensures the safety of operations, protects the environment and consumers, and enables fair play. We want to partner with legal professionals to create enforceable regulations and adopt global best practices,” he added.
The forum also featured remarks from the Deputy Speaker of the House of Representatives, Benjamin Kalu, who said the Petroleum Industry Act (PIA) 2021 had transformed Nigeria’s petroleum sector by introducing a unified legal and regulatory framework.
Kalu, represented by the Chairman of the House Committee on Downstream Petroleum Sector, Ikenga Ugochinyere, described the PIA as a catalyst for compliance, investment growth, and sector efficiency. He cited over $16 billion in investment commitments since the PIA’s enactment, attributing the increase to improved regulatory certainty, reduced tax burdens, and attractive fiscal incentives.
“These investments are more than figures—they represent jobs, infrastructure, and a revitalized energy sector,” Kalu noted. “Before the PIA, the sector struggled with overlapping mandates and inefficiency. Today, Nigeria is one of Africa’s top destinations for oil and gas investment, with three out of four final investment decisions in 2024 made in our favour.”
He also revealed that in 2024 alone, Nigeria earned over ₦50 trillion from crude oil and gas exports, while production hit 1.6 million barrels per day by December.
Kalu praised the National Assembly’s continued efforts in supporting the implementation of the PIA and urged stakeholders to remain committed to strengthening the post-PIA regulatory landscape.
The NMDPRA said it will continue to promote an inclusive, sustainable, and investor-friendly regulatory regime through regular engagement with legal professionals and other key players in the petroleum industry.
