Senate vows to end OGFZA, NMDPRA jurisdictional conflict

The Senate Committee on Petroleum Sector has vowed to end the existing jurisdictional regulatory conflict between the Nigeria Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Oil and Gas Free Zone Authority (OGFZA). Chairman of the Senate Committee on Downstream Petroleum Sector, Senator Sulaiman Abdulrahman Kawu Sumaila stated this at the 5-day long Committee’s retreat […]

The Senate Committee on Petroleum Sector has vowed to end the existing jurisdictional regulatory conflict between the Nigeria Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Oil and Gas Free Zone Authority (OGFZA).

Chairman of the Senate Committee on Downstream Petroleum Sector, Senator Sulaiman Abdulrahman Kawu Sumaila stated this at the 5-day long Committee’s retreat held in Yenagoa, Bayelsa state.

Senator Sumaila assured that the committee will, at the end of the retreat, come up with practical and implementable recommendations that will promote harmony, investors’ confidence, energy security and sustainable economic development.

He explained that the retreat was designed to provide a neutral platform for constructive engagements among all relevant stakeholders.

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He added, “The objectives of the retreat are to facilitate meaningful dialogue among all stakeholders on issues arising from the overlapping statutory mandates; develop practical coordination framework capable of promoting seamless regulations, while respecting the lawful mandates of the institutions involved.

“The committee will also examine whether legislative clarification or amendment is required, study and identify ambiguities as well as to ensure that the outcomes of the retreat are in line with national security, consumer protection, market stability and economic growth.

“I want to assure the stakeholders that the committee will examine every presentation, submissions and legal argument placed before it during the retreat.

“At the conclusion of its deliberations, the committee will formulate unbiased, evident-based and objective recommendations aimed for providing both immediate and long-term solutions to the jurisdictional regulatory issues that have arisen.

“Where permanent legislation, policy or constitutional reforms are required to prevent conflicts among the agencies, the committee will not hesitate to recommend such measures in the override interest of the nation.

“Our ultimate goal is to establish a regulatory environment characterized by regularities, cooperation, accountability, efficiency and legal certainty; one that supports engagement, promotes healthy institutional collaboration, safeguard national interest and strengthens Nigeria’s position as leading energy hub in Africa.

In his good will message, the Managing Director of the Oil and Gas Free Zone Authority, Alhaji Bamanga Usman Jada, appealed to all regulatory stakeholders in the petroleum sector to desist from promoting unhealthy jurisdictional ambiguity among the federal government agencies.

Alhaji Jada explained that all regulatory agencies in the sub-sector were expected to create a business-enabling environment that promotes regulatory cooperation among agencies, saying “this should be done relying on the global principles of the rules of law, with concerted efforts to continue building and sustaining investors’ confidence.

“If Nigeria is to become Africa’s foremost energy and industrial hub, Free zone investors like Dangote Industries Free Zone must be allowed to enjoy the one-stop-shop principle which is being practiced in all successful Free Zones across the globe.

“They all operate one coordinated regulatory system, and all institutions of government in Nigeria must continue to be encouraged to understand the greater national objectives of the Free zone scheme.”