The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued a warning that it will sanction any entity operating in the midstream and downstream oil and gas sectors without the required licences, permits, or authorisations.
The regulator’s warning is contained in a public notice issued on Sunday, May 17.
The notice said the NMDPRA’s directive is rooted in the Petroleum Industry Act (PIA) 2021, which designates the Authority as the statutory regulator for technical, commercial, operational, and licensing oversight of Nigeria’s midstream and downstream petroleum operations.
“Pursuant to sections 29, 31, 32 and 33 of the PIA, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (Authority) is the statutory regulator responsible for the technical, commercial, operational and licensing regulation of all midstream and downstream petroleum operations in Nigeria,” part of the notice read.
It clarifies that companies operating within free trade zones and export processing zones are not exempt from these regulations.
“The regulatory mandate of the Authority extends to all midstream and downstream petroleum activities and applies throughout the Federation of Nigeria, including the continental shelf, territorial waters, exclusive economic zone, free zones, export processing Zones, industrial zones and any other designated areas,” it stated.
This means all companies in areas like the Dangote Free Zone must obtain the proper NMDPRA authorisation.
The agency explained that its regulatory oversight covers a wide range of activities, including refining, processing, storage, bulk transportation, pipeline and gas network operations, terminal and jetty use, as well as the wholesale supply, import, export, and distribution of natural gas and petroleum liquids.
“The operation of any midstream or downstream petroleum facility within a free zone, export processing zone, or similar area does not exempt such facility and its operations from compliance with the provisions of the PIA and regulations,” it maintained.
According to the authority, the regulations are that “no person shall establish, construct, operate or undertake any midstream or downstream petroleum activity except with an appropriate licence, permit or authorisation granted by the Authority in accordance with the PIA.
It further stated that in line with section 48(1) of the PIA, any government ministry, department or agency exercising any function or taking any action, which may have a direct impact on midstream or downstream petroleum operations, shall consult with the Authority before issuing any regulation, guideline, or taking any such action.
It added that the Authority shall review the recommendations of the Government ministry, department or agency and communicate the decision accordingly, and the decision shall be complied with by the relevant Government ministry, department, or agency.
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The NMDPRA invoked Section 309 of the PIA, which states that in any conflict between the PIA and other laws, the provisions of the PIA will prevail.
In view of the foregoing, any person engaging in midstream and downstream petroleum operations without an appropriate licence, permit, or authorisation from the Authority shall be subject to Sanctions in accordance with the relevant provisions of the PIA.”
It directed all industry participants, including managing directors and CEOs of relevant companies, to ensure immediate compliance with the provisions of the PIA and all regulations to avoid sanctions.
This renewed regulatory measure comes at a time of significant tension in Nigeria’s downstream sector, marked by a legal battle over the authority to issue import licenses.
A recent lawsuit filed by the Dangote Petroleum Refinery seeks to stop the issuance of fuel import licences to other fuel marketers, arguing that such licences undermine local refining capacity.
However, major industry players, represented by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), have strongly defended the NMDPRA’s actions. They argue that the import licenses are legal instruments essential for national energy security, market competition, and a stable fuel supply chain for Nigerian consumers.
This controversy is further compounded by a reported clash between the NMDPRA and the Oil and Gas Free Zones Authority (OGFZA) over which agency has regulatory authority for petroleum operations within free zones, specifically citing the example of the Dangote Refinery.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in Mass Communication. He can be reached via @VICTOREZEJA on X