The Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority have pledged to work more closely to eliminate regulatory uncertainties and boost investor confidence in the oil and gas sector.
The commitment was in the wake of a courtesy call paid to the headquarters of NUPRC by the Chief Executive of NMDPRA, Rabiu Abdullahi Umar.
The meeting, which was led by the Commission Chief Executive of NUPRC, Oritsemeyiwa Eyesan, saw the two regulatory bodies come together to foster improved collaboration in order to create a more integrated regulatory environment within the industry.
According to a press release by the Head of Media and Corporate Communications Department of NUPRC, Eniola Akinkuotu, it is in recognition of the role both entities play in maintaining the stability of the oil sector in Nigeria that the two regulators reiterated their commitment to presenting a united front.
Both the bodies recognised that they both derive their mandate from the Petroleum Industry Act (PIA), but also stated that aligning themselves well to implement the legislation will help increase efficiency within the industry.
The other important issue raised included the need to sort out regulatory uncertainties that had affected investors’ confidence. She reiterated that working together in the current manner demonstrates a joint resolve to make improvements in the industry, noting that good results were already being realised.
This was evidenced by the lack of fuel supply disruption in the past months despite the challenges in the global markets, she added.
Regulatory synergy is very important to ensure growth, especially as the country tries to attract investments in oil and gas, among others, Eyesan said.
Similarly, Umar emphasized the need for teamwork since both agencies were partners with a shared objective of ensuring Nigeria’s energy future. It was stated that more collaboration would improve efficiency, policy coordination, and investor confidence.
The regulatory bodies further commended the government’s policy approach because the reforms, improved security, and interagency cooperation have all led to stability in the industry.
They expressed optimism about the prospects of Nigeria’s petroleum industry since there is the potential for collaboration between agencies and favorable government policies.
The Petroleum Industry Act, enacted in 2021, has seen the petroleum sector be reorganized in such a way that there are different regulating bodies for the upstream and midstream/downstream sectors. While the upstream petroleum activities are regulated by NUPRC, those relating to the midstream/downstream sector are controlled by NMDPRA.
All the actors within the industry have been advocating for increased cooperation between these two agencies.
