As the recently passed Petroleum Industry Act (PIA) begins implementation. The Federal government finally scraps DRP, PPPRA, and PEF. This new act makes NNPC a limited liability to be governed by an extant company and allied matter ( CAMA) regulation.
The Petroleum Industry Act Implemented
The DPR is the Department of Petroleum Resources and inspects the industry for the NNPC. PPPRA is the Petroleum Products Pricing Regulatory Agency with powers to simulate and decide prices for products. And the PEF is the Petroleum Equalisation Fund is responsible for the prices across the country. Following these changes, two agencies are to perform the duties of the three defunct agencies. These two are the Nigerian Upstream Regulatory Commission (NURC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NPRA).
Imperatives of the PIA
Industry stakeholders are considering ways to engage oil companies amid divestment of portfolios, stressing that the country would drastically drive improvement in daily production and crude oil reserves. Speaking at the event for the official communication in Abuja, Minister of State for Petroleum Resources, Timipre Sylva, predicted improved investments to leapfrog the nation’s oil sector. Also, his voice was amplified by the agreements of the head of the upstream commission, Gbenga Komolafe, and NPRA Chief Executive Officer, Farouk Ahmed. Silvia said that “… we are very lucky to have very competent industry people with proven experiences. So, we believe that they can hit the ground running and Nigerians should brace up for exponential growth in the oil and gas sector.”
The Chief Executive, NURC, Gbenga Komolafe, said the commission would deliver on its mandate in the new Industry Act.
