Senate moves to end regulatory clash in Nigeria’s petroleum sector

The Senate Committee on Petroleum Sector has pledged to resolve the longstanding jurisdictional dispute between the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Oil and Gas Free Zones Authority in a move aimed at improving regulatory coordination and strengthening investor confidence in Nigeria’s energy industry.

The Chairman of the Senate Committee on Downstream Petroleum Sector, Abdulrahman Sumaila, made the commitment at the end of a five-day retreat held in Yenagoa, Bayelsa State.

According to Sumaila, the committee intends to produce practical and implementable recommendations that will promote regulatory harmony, support energy security, and drive sustainable economic growth.

Senate seeks practical solutions

Mr Sumaila explained that the retreat was designed to provide a neutral platform for engagement among all relevant stakeholders involved in petroleum regulation.

“The objectives of the retreat are to facilitate meaningful dialogue among all stakeholders on issues arising from overlapping statutory mandates and develop practical coordination frameworks capable of promoting seamless regulation while respecting the lawful mandates of the institutions involved,” he said.

He added that the committee would review whether legislative amendments or legal clarification are necessary to eliminate ambiguities and improve institutional efficiency.

Focus on investor confidence and energy Stability

The committee chairman assured participants that all presentations, legal arguments, and submissions would be carefully reviewed before recommendations are made.

“At the conclusion of deliberations, the committee will formulate unbiased, evidence-based and objective recommendations aimed at providing both immediate and long-term solutions,” Mr Sumaila stated.

He further noted that where legislative, policy, or constitutional reforms become necessary, the Senate would recommend such measures in the national interest.

“Our ultimate goal is to establish a regulatory environment characterised by regularity, cooperation, accountability, efficiency and legal certainty,” he added.

OGFZA calls for regulatory cooperation

Meanwhile, Managing Director of the Oil and Gas Free Zone Authority, Bamanga Jada, urged agencies within the petroleum sector to avoid unhealthy jurisdictional disputes.

Mr Jada stressed that regulators should focus on creating a business-friendly environment built on collaboration and certainty.

“This should be done relying on global principles of the rule of law, with concerted efforts to continue building and sustaining investors’ confidence,” he said.

Dangote free zone referenced in debate

Jada argued that if Nigeria intends to become Africa’s leading energy and industrial hub, free zone investors, including operations linked to the Dangote Industries Limited Free Zone, should benefit from the globally recognised one-stop-shop regulatory model.

He noted that successful free zones around the world operate under coordinated regulatory systems and called for stronger institutional alignment to support national economic goals.

The development comes amid broader efforts to streamline Nigeria’s petroleum governance framework and improve ease of doing business in the energy sector.