NMDPRA Harps On Fair Competition In Petroleum Downstream, Midstream Sectors
By Sunday Etuka, Abuja
Engendering fair competition in the downstream and midstream sectors will lower barriers to entry, diversify the market structure and engender innovation.
The Executive Director, Distribution Systems, Storage and Retailing Infrastructure (DSSRI), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Ogbugo Ukoha stated this while speaking at the Nigeria Annual International Conference and Exhibition (NIACE) of the Society of Petroleum Engineers (SPE) in Lagos.
He submitted that competition will also improve operational efficiency and service delivery and result in fairer and cost-reflective pricing to the benefit of Nigerians.
“All of these are ultimately beneficial to both operators and consumers. Sections 31, 32 and 33 of the PIA repeatedly uphold competition as NMDPRA’s overarching priority. The SPE is hereby assured that NMDPRA’s regulatory interventions will always strive to align with this statutory outlook in a manner that guarantees the inevitability of the midstream and downstream development.”
Ukoha commended the SPE for its dedication to fostering technical knowledge, innovation, and best practices, adding, “Your role in capacity building, research dissemination, and enabling industry linkages is truly invaluable.”
He maintained that choosing, “Petroleum Industry Value Chain Optimization: The Inevitability of Midstream and Downstream Development,” as the theme of the conference is crucial at a time when the oil and gas industry is striving to navigate the evolving landscape of the petroleum industry in Nigeria.
He added: “A liberalized market attracts investments and creates opportunities for diverse market participants to thrive. Investment in pipelines, storage facilities, and refineries is crucial to the increased smooth flow of petroleum products. Sustainable practices and environmental standards are fundamental to industry development. Developing local expertise and enhancing workforce capabilities are critical for long-term industry sustainability.”
The ED also explained that the Petroleum Industry Act 2021 mandates the NMDPRA to regulate the mid and downstream to drive resource optimization and ensure energy security which are imperatives for Nigeria’s economic growth.
To achieve its mandates, he stated that the NMDPRA is promoting competition and protecting the interests of all stakeholders, particularly the consumers.
