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Federal Government Introduces New Petrol Import Licence Regulations, Discontinues DPR Guidelines

Published by admin on October 16th, 2024.

Federal Government Introduces New Petrol Import Licence Regulations, Discontinues DPR Guidelines

The Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has announced new regulations aimed at streamlining the process for obtaining petrol import licences and consolidating operational guidelines within the industry into a single framework.

The government has revoked previous regulations previously managed by the now-defunct Department of Petroleum Resources, marking a shift towards a more cohesive regulatory approach.

The proposed 2024 Midstream and Downstream Petroleum Operations Regulations are designed to simplify compliance and reduce the complexity of navigating multiple regulations in the petroleum sector.

At a stakeholder engagement event in Abuja, the Managing Director of NMDPRA, Farouk Ahmed, emphasized that the initiative aligns with Section 216 of the Petroleum Industry Act, which requires stakeholder consultations before finalizing regulations.

Represented by Mr. Ogbugo Ukoha, Director of Distribution System Storage and Retailing Infrastructure, Ahmed noted that the new regulations would integrate 12 previously published regulations, aiming to eliminate inconsistencies and enhance compliance with the Petroleum Industry Act (PIA).

“The consolidation process allows us to streamline the regulatory landscape and promotes a more favorable business environment in Nigeria,” he stated.

Ukoha further explained that the new regulations would work in conjunction with existing guidelines, including the Midstream and Downstream Petroleum Fees Regulations, which outline fees for relevant activities.

“Once we finalize this document, we will collaborate with the Federal Ministry of Justice to ensure thorough review and compliance before it is officially published,” he added.

Following successful stakeholder consultations and approval from the Ministers of State for Petroleum Resources, the updated Midstream and Downstream Petroleum Fees Regulations are expected to be published in the Federal Government Gazette soon.

Dr. Joseph Tolorunse, the Authority’s Legal Adviser, highlighted that the main aim of the 2024 regulations is to consolidate 16 drafted regulations for easier reference and understanding.

“We recognized that having numerous regulations can be burdensome for industry participants. By consolidating these regulations, we hope to facilitate better comprehension and compliance,” he said.

The operations regulations will govern various activities in the midstream and downstream sectors, including the transportation, loading, and shipment of natural gas, as well as the licensing process, making it more accessible to stakeholders.

Additionally, the regulations will specify fines and penalties for violations, aiming to harmonize existing guidelines and include aspects related to the PIA, including codes of conduct and licensing requirements.