The Nigerian Midstream and Downstream Petroleum Regulations Authority (NDMPRA), says its proposed Midstream and Downstream Petroleum Fees Regulations will consolidate fees prescribed for midstream and downstream activities into a single document.
Mr Ogbugo Ukoha, Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA made this known on Monday in Abuja at the opening of its stakeholders’ consultation forum on midstream and downstream petroleum fees regulations 2024.
‘The consultation forum is being held in furtherance of Section 216 of the Petroleum Industry Act 2021 (PIA) which mandates consultation with stakeholders prior to the finalisation of regulations made under the Act.
‘Section 33 (v) of the PIA is to the effect that the Authority may make regulations establishing fees payable to the Authority subject to section 3 (1) (j) of the PIA,” Ukoha said.
This process, he said, had enabled the Authority to review its licence and service fees with a view to reducing the cost
entry barrier into the midstream and downstream petroleum industry for prospective operators.
Ukoha said it would encourage investments in the midstream and downstream petroleum industry and lower the operating cost of midstream and downstream petroleum facilities.
‘The process will ensure consistency of fees and services across the regulatory space; and promote a competitive market for midstream and downstream petroleum operations.
‘These proposed Fees Regulations are to be read in conjunction with other Regulations of the Authority which provide for the technical, commercial and operational regulation of the midstream and downstream petroleum industry.
‘The proposed Regulations are also in consonance with President Bola Tinubu GCFR’s commitment to easing the cost of doing business in Nigeria,” he said.
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Ukoha, while thanking the stakeholders for their submissions and participation, expressed hope for a successful engagement.
He assur
ed them of the authority’s cognisance of the feedback with a view to incorporating the same, where applicable, into the proposed Fees Regulations.
The midstream and downstream stakeholder’s representatives in attendance called for gas distribution licence and transaction to be paid in Naira denomination to enable ease of doing business within the sector.
Speaking, the General Counsel, Greenville LNG, Ngozi Efobi, said imposing a petroleum products distribution licence in addition to the taxes, licensing fees and others already being paid could impede business.
Efobi recommended that the authority should exercise discretion to allow for payment to be made in Naira to enable ease of doing business and promote efficient compliance and strengthen the Naira.
‘Nigerian laws/regulations should not contain fee prescriptions in foreign currency of another country.
‘We are a domestic downstream company selling in Naira, we should also pay in Naira,” she said.
Source: News Agency of Nigeria