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Retailers oppose NMDPRA’s plan to regulate filling station shutdowns

The Nigerian Midstream and Downstream Petroleum Regulatory Authority has introduced draft regulations on the safe decommissioning of filling stations, drawing pushback from downstream retail operators.

The proposed rules—currently under review at the Stakeholders’ Consultation Forum on the 2025 Midstream and Downstream Petroleum Safety and Environmental Regulations—would require formal procedures for the abandonment and closure of fuel retail outlets.

However, industry stakeholders have urged the authority to restrict the regulations to midstream activities only. NMDPRA, in response, maintains that the provisions are crucial to mitigating environmental risks posed by neglected or improperly decommissioned petrol stations.

The new framework is part of wider efforts to standardise safety and environmental practices across Nigeria’s petroleum industry.

The discussion took centre stage at a consultative forum held Tuesday at the NMDPRA headquarters in Abuja, where midstream and downstream operators gathered to review the draft regulations.

Addressing participants, NMDPRA Secretary and Legal Adviser, Joseph Tolurushe, acknowledged that some stakeholders had called for the regulation to apply solely to midstream operations, excluding downstream facilities.

However, the authority maintained its position, stressing the need for proper decommissioning procedures for filling stations to prevent environmental harm, particularly the contamination of underground water sources.

He said, “In 2033, we made three regulations that set the boundaries of safety and the environment in the mainstream and downstream petroleum sector. So the regulations focus on safety regulations, abandonment and decommissioning regulations, and environmental regulations. So we decided to consolidate these three regulations into one. That one is called Mainstream and Downstream Safety and Environmental Regulations.

“The reason why we decided to consolidate is mainly because we want to have one single regulation. So that it will be easy to refer to, so that it will also be easy to do business. It is also an opportunity for us to amend some parts of those regulations we made in 2023.

“Just because of the engagement we have had and because of the suggestions and comments we received on those regulations. We also use it as an opportunity to review it. So in reviewing it, we have consolidated the three regulations into one.

“If you recall, we had consolidated about ten regulations before into one to ensure we don’t have a plethora of regulations in the industry. In some jurisdictions like Norway, we found out that they only have one or two regulations that regulate their upstream activity.

“So it’s also to tell you that we are trying to move into an era of self-regulation. Where you only have to monitor the activities and the industry itself regulates itself.”

Tolurushe also revealed that the authority has decided to consolidate three separate regulations into a single framework, aligning with international best practices. He explained that the move is aimed at improving clarity and ease of compliance, stating, “So that it will be easy to refer to, so that it will also be easy to do business.”

He added that the consolidation also provides an opportunity for the NMDPRA to amend sections of the regulations introduced in 2023.

“Operators want to know, where is the guideline now. So the guideline is just a procedure. It’s just a guide. So there’s nothing to be afraid of.

“It is just a guide. It is also just to state the procedure for achieving what the regulations have said. So it’s not going to be something that will be too cumbersome or there will be too many errors on them that we will not be able to fix.

“Some of them feel that, in the areas of the consolidated and abandonment regulations, some of them feel that, look, we should limit it to midstream facilities. We should not take it down to the downstream facilities.

“We are looking at it. I think, for example, of filling stations. Some of them are dissenting, saying the regulation should not come to abandoned filling stations. But we are saying if you are going to abandon the filling station, there should be a way you abandon it properly so that there’s no contamination of the groundwater. So, in those areas, we will know how to treat the law, to take care of all those areas of concern.”

In his welcome address, NMDPRA Authority Chief Executive, Ahmed Farouk, stated that the proposed 2025 Midstream and Downstream Petroleum Safety and Environmental Regulations consolidate three previously published regulations into a single document.

Citing Section 33 of the Petroleum Industry Act (PIA), Farouk noted that the Authority is empowered to make regulations governing all activities related to midstream and downstream petroleum operations in Nigeria.

He explained that the consolidation aims to resolve inconsistencies, simplify regulatory navigation, eliminate redundancies, and enhance compliance with both the PIA and existing regulations.

Represented by the Executive Director, Distribution System, Storage and Retailing Infrastructure, Ogbugo Ukoha, the ACE added: “The consolidation process has enabled the Authority to reduce the complexities of navigating and implementing the Authority’s numerous regulations, streamline all activities concerning health, safety, and environmental operations—including decommissioning and abandonment—and eliminate inconsistencies and repetitions across multiple regulations.”