The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has assured stakeholders that it will address the contentious implementation of the 0.5% levy imposed by the Midstream Downstream Gas Infrastructure Fund under the Petroleum Industry Act.
Speaking at a stakeholders’ sensitization program in Abuja, NMDPRA Authority Chief, Farouk Ahmed, acknowledged the concerns raised by wholesale natural gas producers and suppliers regarding the collection of the development fee.
He assured them that a re-evaluation of the levy would be conducted to ensure compliance with the PIA. Ahmed emphasized the importance of resolving these issues to meet current and future demands for wholesale gas and petroleum liquids.
Wholesale gas producers, under the Oil Producers Trade Section (OPTS), argued that implementing the 0.5% MDGIF levy retroactively is impractical. Many of their gas supply contracts were signed long before the PIA was enacted in August 2021, making it difficult to incorporate the new levy.
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The producers also pointed to Section 52-7A of the PIA, which they claimed places the responsibility for fee collection on the NMDPRA. Additionally, the producers highlighted delayed payments from some customers, including power-generating companies, with outstanding debts dating back to 2011.
In response, the NMDPRA assured the stakeholders that their concerns would be thoroughly addressed. A full-scale workshop will be organized to provide clarity on the contentious issues and align stakeholders on the implementation of wholesale gas and petroleum liquid supply operations.
Ahmed also highlighted the broader benefits of the wholesale supply framework, noting that it fosters investment across the petroleum value chain, enhances transparency in hydrocarbon measurement, and promotes fair market dealings.
(Editor : Ena Agbanoma)
