The Nigerian Midstream and Downstream Petroleum Regulatory Authority (“NMDPRA” or “the Authority”) was established by the recently enacted Petroleum Industry Act (“PIA” or “the Act”) 2021, the first major update of the legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry in decades.
This article focuses on the Authority, which is responsible for the technical and commercial regulation of the midstream and downstream operations in the Nigerian petroleum industry under the new regulatory regime established in the Act.
Prior to the PIA, the regulation of the midstream and downstream petroleum operations in Nigeria was handled by three regulatory agencies. The Authority’s oversight thus encompasses a merger of the three now-defunct regulatory agencies: Petroleum Products Pricing Regulatory Agency (PPPRA), Petroleum Equalization Fund (Management) Board (PEFMB), and the midstream and the downstream division of the Department of Petroleum Resources (DPR). The establishment of the Authority is one of the many innovations in the Act towards ensuring a progressive regulatory framework for investments and full optimization of the midstream and downstream sectors of the petroleum industry in Nigeria.
The NMDPRA is responsible for the technical and commercial regulation of the midstream and downstream operations; the overriding objective is to effectively control the petroleum industry’s midstream and downstream value chains to encourage sustainable growth, and promote adequate product pricing, supply, and distribution.
Commentary on the NMDPRA
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