NMDPRA issues compliance directive, warns of sanctions under Petroleum Industry Act

Business

ABUJA, Nigeria (NPA) — The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued a new industry circular directing all operators to ensure full compliance with the Petroleum Industry Act (PIA) 2021, warning that violators will face sanctions.

In the circular dated 12 May 2026, Acting Chief Executive Abiodun Adeniji reminded managing directors and chief executives of oil and gas midstream and downstream companies, petrochemical and fertiliser firms, and import/export terminals that all operations — including refining, processing, storage, pipelines, gas networks, importation, exportation, and distribution — fall under the Authority’s regulatory oversight.

The directive stressed that operating within free zones or export processing areas does not exempt companies from compliance. It further warned that no entity may establish, construct, or operate any midstream or downstream petroleum activity without a valid licence, permit, or authorisation issued by the Authority.

Under section 48(1) of the PIA, ministries or agencies taking actions that directly impact petroleum operations must consult the NMDPRA before issuing regulations or directives. The circular also cited section 309, affirming that the PIA overrides any conflicting legislation.

Adeniji cautioned that operators engaging in petroleum activities without proper authorisation will be subject to sanctions in line with the Act, urging all industry participants to ensure immediate compliance.

“Any person engaging in midstream and downstream petroleum operations without an appropriate licence, permit or authorisation from the Authority shall be subject to sanctions in accordance with the relevant provisions of the PIA,” the circular stated.