NMDPRA to Sanction Oil Firms in Free Trade Zones

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued a warning to oil companies operating in free trade zones without the requisite licenses and permits, stating they will face sanctions under the Petroleum Industry Act (PIA) of 2021. Abiodun Adeniji, the Chief Executive of NMDPRA, stressed that all midstream and downstream petroleum activities are subject to regulatory oversight, irrespective of their location.

The circular clarifies that companies involved in refining, storage, bulk transport, pipeline operations, and gas transport networks must comply with the PIA regulations. The NMDPRA also noted that no individual or company is permitted to establish, construct, or operate midstream or downstream petroleum facilities without obtaining the appropriate licenses.

The authority invoked Section 48(1) of the PIA and emphasized that any operations within free trade zones cannot claim exemption from compliance with the PIA provisions. The NMDPRA reserves the right to review and recommend actions regarding compliance in the sector.