Ayomide Bello
THE Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has urged operators in the Nigerian mid and downstream petroleum industry to adhere strictly to the rules, regulations and policies set to guide the sub-sector.
Authority Chief Executive (ACE), Engr Farouk Ahmed, who stated this recently at the inaugural S&P Global Commodity Insights Conference on West African Refined Fuel Market held in Abuja, urged NMDPRA’s stakeholders to follow the rules, regulations and policies, which are all in line with the provisions of the Petroleum Industry Act (PIA) 2021.
He added: “By so doing, Nigeria, West Africa, and Africa, if we collaboratively obey our rules and regulations, will move forward.”
He hinted that 12 African and non-African countries participating in the conference underscored the importance of collaboration in the oil and gas sector.
“We have over 12 countries represented here. We have delegations from the State Federation of the Russian Republic, the United States and the United Kingdom,” the NMDPRA boss stated.
He expressed the readiness of the Authority to work with other government agencies to attract investment into the mid and downstream sectors.
While calling for regional cooperation, Engr Ahmed observed that West Africa is fast emerging as a market for gasoline, recording about two million metric tonnes of trading activities yearly.
He stressed that the time has come for Africa to improve its refinery capacity, shipping activities and business, saying downstream activities are marine-based.
His words: “We need to create more storage for these activities. When I look at Nigeria in particular, once the National Strategic Storage takes off, a hub would be created and business activities can effectively take off and we will have projects within our shores. This will also indirectly address energy insecurity. Traders that are in Europe, the Far East or the Middle East can then trade within the Nigerian shores. This is a fantastic example of what is possible in the bunkering activities. So, when we have these shipping activities and coastal activities, there will be a lot of bunkering business booming within West Africa. Presently, ships coming from Europe or from the Far East, go to Gibraltar to go and bunker before coming to Nigeria, or they go to other countries and bunker their ships before coming to West Africa. When Nigeria has this bunkering business within West Africa, it is going to be a plus for all of us.”
The NMDPRA chief noted that the resolutions reached at the conference will be implemented saying timelines have been set to ensure the confab does not end up as a mere talk shop.
He called for streamlining of policies across Africa to achieve oneness and unity of purpose noting, ”We need to have a relative location, so that we work together as regulators to put policies in place in terms of quality specifications for uniform quality across the African countries that will ensure that pricing, benchmarking pricing process is transparent.”
