The Senate has launched a fresh effort to resolve the lingering regulatory dispute between the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Oil and Gas Free Zones Authority (OGFZA), in a move aimed at eliminating uncertainty in Nigeria’s petroleum industry and restoring investor confidence.
Leading the intervention, Chairman of the Senate Committee on Downstream Petroleum Sector, Senator Sulaiman Abdulrahman Kawu Sumaila, said lawmakers are determined to address the jurisdictional overlaps that have sparked tensions between the two agencies and raised concerns among industry players.
Speaking at a five-day stakeholders’ retreat in Yenagoa, Bayelsa State, Sumaila described the engagement as a critical step toward building a more coordinated and predictable regulatory framework for the oil and gas sector.
He said the committee would use the retreat to examine competing claims of authority, identify gaps in existing laws, and develop practical solutions capable of ending regulatory conflicts that have persisted within the industry.
“Our goal is to facilitate frank discussions among stakeholders, promote regulatory harmony, and develop a framework that ensures institutions can effectively carry out their responsibilities without unnecessary overlaps,” the senator said.
According to him, the committee will also determine whether legislative amendments are required to remove ambiguities in the law and prevent future clashes between regulatory agencies.
Sumaila assured stakeholders that all submissions and legal arguments presented during the retreat would be carefully evaluated, stressing that the committee’s recommendations would be guided by national interest, economic growth, energy security and consumer protection.
He further signalled the Senate’s readiness to push for far-reaching reforms if necessary.
“Where legislative, policy or constitutional changes are required to permanently address these issues, we will not hesitate to recommend them,” he said.
The senator noted that creating a transparent and efficient regulatory environment remains essential to attracting investment and strengthening Nigeria’s position as a major energy destination on the continent.
Meanwhile, Managing Director of OGFZA, Alhaji Bamanga Usman Jada, warned against actions that create regulatory uncertainty and discourage investors.
He urged government agencies operating within the petroleum sector to embrace collaboration rather than competition, arguing that regulatory efficiency is crucial to unlocking the full potential of Nigeria’s oil and gas industry.
Jada particularly defended the “one-stop-shop” model that governs free zone operations globally, insisting that investors operating within free zones should not be burdened by multiple and overlapping regulatory requirements.
“If Nigeria is serious about becoming Africa’s leading energy and industrial hub, free zone investors must be allowed to enjoy the same regulatory certainty that exists in successful free zones around the world,” he said.
He cited the Dangote Industries Free Zone as an example of investments that require a stable and coordinated regulatory framework to thrive.
Industry observers believe the outcome of the retreat could have significant implications for the future of petroleum sector regulation, with expectations that the Senate’s recommendations may finally provide clarity on the roles of the two agencies and reduce the friction that has long unsettled investors.
The retreat is expected to conclude with proposals aimed at fostering cooperation among regulators, strengthening legal certainty and creating a more investment-friendly environment for Nigeria’s strategic energy sector.