Senate Moves to Resolve Regulatory Dispute in Petroleum Sector

By Ahmed Yusuf, Abuja

The Senate Committee on the Downstream Petroleum Sector has pledged to address the lingering jurisdictional dispute between the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Oil and Gas Free Zones Authority (OGFZA) in a bid to strengthen regulatory efficiency and boost investor confidence.

Chairman of the committee, Senator Abdulrahman Sumaila, made the commitment at the conclusion of a five-day stakeholders’ retreat held in Yenagoa, Bayelsa State, on Friday.

According to Sumaila, the retreat was convened to provide a neutral platform for dialogue among key stakeholders and to tackle concerns arising from overlapping statutory responsibilities between the two agencies.

He said the committee would develop practical and implementable recommendations aimed at promoting regulatory harmony, enhancing energy security, attracting investment, and supporting sustainable economic growth.

“The retreat is intended to facilitate meaningful discussions on areas of conflict, establish a workable coordination framework, and determine whether legislative amendments or clarifications are necessary to address ambiguities in existing laws,” he said.

Sumaila added that the committee would carefully review all presentations, submissions, and legal arguments presented during the retreat before arriving at evidence-based recommendations for both immediate and long-term solutions.

He further assured stakeholders that the Senate would not hesitate to recommend policy, legislative, or constitutional reforms where necessary to prevent future conflicts among regulatory institutions.

“Our goal is to create a regulatory environment built on cooperation, accountability, efficiency, and legal certainty—one that protects national interests and reinforces Nigeria’s position as a leading energy hub in Africa,” he stated.

Also speaking at the retreat, Managing Director of the Oil and Gas Free Zones Authority, Alhaji Bamanga Jada, urged regulatory agencies in the petroleum industry to avoid actions that encourage jurisdictional disputes.

Jada stressed the need for stronger inter-agency cooperation to create a business-friendly environment and sustain investor confidence in the sector.

He noted that free zone investors, including those operating within the Dangote Industries Free Zone, should be allowed to benefit from the globally recognised “one-stop-shop” regulatory framework common to successful free zones around the world.

“If Nigeria is to emerge as Africa’s foremost energy and industrial hub, all government institutions must align with the broader objectives of the free zone scheme and support coordinated regulation,” he said.

The retreat forms part of ongoing efforts by the National Assembly to strengthen governance and improve operational efficiency across Nigeria’s petroleum industry.

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