The Senate Committee on Downstream Petroleum Sector has moved to end the long-running regulatory face-off between the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Oil and Gas Free Zones Authority (OGFZA), warning that unresolved jurisdictional disputes could undermine investment and growth in Nigeria’s petroleum industry.
Senate Committee Steps In
Speaking at a five-day stakeholders’ retreat in Yenagoa, Bayelsa State, Chairman of the committee, Senator Sulaiman Abdulrahman Kawu Sumaila, said the Senate was determined to find a lasting solution to the regulatory overlaps that have generated uncertainty within the sector. He described the retreat as a strategic intervention aimed at bringing all relevant stakeholders to the table to resolve grey areas in the mandates of both agencies and create a more predictable regulatory environment for investors.
According to him, the committee’s goal is to develop practical and actionable recommendations that will promote institutional harmony, strengthen energy security, attract investment, and support Nigeria’s broader economic ambitions.
Key Objectives and Commitments
“The objective is to facilitate constructive engagement among stakeholders, address concerns arising from overlapping statutory responsibilities, and develop a coordination framework that allows regulatory agencies to work seamlessly while respecting their respective mandates,” Sumaila said. He noted that the committee would closely examine existing laws and identify areas requiring clarification or amendment to eliminate ambiguities that often trigger conflicts between agencies.
The senator assured stakeholders that every submission, presentation, and legal argument presented during the retreat would be carefully reviewed before recommendations are made. “We are committed to delivering objective and evidence-based solutions. Where legislative, policy, or even constitutional reforms are necessary to prevent future conflicts, we will not hesitate to recommend them in the overriding national interest,” he stated.
OGFZA’s Position
Meanwhile, Managing Director of the Oil and Gas Free Zones Authority (OGFZA), Alhaji Bamanga Usman Jada, urged regulatory agencies to avoid actions that create jurisdictional confusion and discourage investors. He argued that regulatory institutions should focus on creating a business-friendly environment driven by cooperation, respect for the rule of law, and a shared commitment to national economic objectives.
Jada particularly emphasized the importance of protecting the globally recognised “one-stop-shop” principle that guides free zone operations, noting that investors operating in free zones should not be subjected to multiple and conflicting regulatory regimes. “If Nigeria truly wants to emerge as Africa’s foremost energy and industrial hub, free zone investors, including Dangote Industries Free Zone, must be allowed to enjoy the one-stop-shop framework that has driven the success of free zones across the world,” he said.
Expected Outcomes
The retreat is expected to produce recommendations that could reshape the regulatory architecture of Nigeria’s petroleum industry, reduce inter-agency friction, and provide investors with the certainty needed to drive growth in one of the country’s most critical economic sectors.
