Nigeria’s President Bola Tinubu has taken steps to resolve the ongoing clashes between the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA). In a memo addressed to the Ministry of Justice and titled “Delineation of Regulatory Oversight Between NUPRC and NMDPRA,” Tinubu aims to establish clear boundaries between the responsibilities of the two regulators until the Petroleum Industry Act (PIA) is amended by the National Assembly.
Previously, former President Muhammadu Buhari had instructed the NUPRC to supervise all crude oil export terminals, while directing the NMDPRA to cease regulatory work at these terminals. However, conflicts persisted, as evidenced by the recent accusation made by the NMDPRA against ExxonMobil for unauthorized petroleum product lifting.
To ensure clarity, Tinubu employed a diagrammatic illustration in his personally signed letter to demonstrate the limits of each agency. He acknowledged the ambiguity in the law and attempted to define the responsibilities of NUPRC and NMDPRA.
According to the new directive, NUPRC will exclusively regulate upstream petroleum operations and facilities, including licensing, administration, and monitoring of petroleum facilities from extraction to crude export terminals and natural gas processing plants’ entry gates. On the other hand, NMDPRA will be responsible for petroleum operations and facilities from the exit of crude export terminals to the entry gate of natural gas processing plants.
Tinubu emphasized that NUPRC would determine the integration status of petroleum facilities and exercise sole jurisdiction over the technical and commercial regulation of integrated facilities for upstream petroleum operations.
The president instructed both NUPRC and NMDPRA to comply with the directives, avoiding duplication of regulatory responsibilities, particularly concerning export terminal operations. He also highlighted the implications for staff deployment and financial sustainability of the NMDPRA.
To find a resolution, Tinubu called upon the ACE NMDPRA, CCE NUPRC, and the Special Adviser to the President on Energy, under the Chief of Staff’s guidance, to collaborate on establishing modalities and potential amendments to the PIA. He requested the publication of the directive in the Federal Government Gazette.