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Fuel Retailers Push Against NMDPRA’s New Decommissioning Rules

NMDPRA

Fuel retailers across Nigeria, including those in Rivers State, are raising concerns over new decommissioning rules proposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The draft regulation, part of the Proposed Midstream and Downstream Petroleum Safety and Environmental Regulations 2025, has sparked debate among stakeholders at a recent public consultation forum. The rules mandate strict procedures for abandoning and decommissioning retail fuel outlets, aiming to address environmental risks from poorly managed or abandoned petrol stations. However, retailers argue the regulations could overcomplicate operations and unfairly burden their businesses.

The NMDPRA’s proposal consolidates three existing regulations from 2023 covering safety, decommissioning, and environmental standards into a single framework. According to Ogbugo Ukoha, Executive Director of Distribution Systems, Storage, and Retailing Infrastructure at the NMDPRA, the goal is to streamline compliance and reduce operational complexities for businesses while ensuring environmental safety. “We’ve combined these rules to make it easier for operators to comply and to strengthen safety across the sector,” Ukoha said, emphasising the need to mitigate hazards like soil contamination and fire risks from neglected stations.

Retailers, particularly those running smaller stations in areas like Port Harcourt, argue that the rules are overly focused on midstream operations and don’t account for the realities of downstream retail. “We’re not against safety, but these regulations feel like they’re designed for big players, not local station owners like us,” said Chika Okoye, a fuel station owner in Rivers State. Okoye and others worry that the costly and complex decommissioning process could force smaller operators out of business, especially in regions already grappling with economic challenges.

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The opposition highlights a broader tension in Nigeria’s petroleum sector, where regulatory changes often struggle to balance safety with economic viability. In Rivers State, where fuel stations are critical to local commerce, stakeholders fear the rules could disrupt supply chains and raise operational costs. The NMDPRA insists the regulations are essential for environmental protection, citing cases of abandoned stations leaking hazardous substances. However, retailers are calling for adjustments to make the rules more inclusive of smaller businesses.

The consultation process is ongoing, with the NMDPRA promising to consider stakeholder feedback before finalising the regulations. For now, fuel retailers in Rivers and beyond are bracing for changes that could reshape their industry, hoping for a solution that protects both the environment and their livelihoods.

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