A disagreement has arisen between oil producers and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over the collection of a 0.5% wholesale price levy.
The NMDPRA insists that oil producers should collect the levy and remit it to the appropriate banks. However, the producers believe the responsibility should lie with the regulator.
Speaking at a stakeholders’ sensitization workshop, NMDPRA Chief Executive Farouk Ahmed, represented by the Authority’s Legal Adviser, Joseph Tolorunse, explained that the workshop was organized to address concerns raised during the first phase of the NMDPRA’s sensitization program. He stated, “Due to unresolved issues, NMDPRA has faced challenges in implementing wholesale supply operations. This workshop provides an opportunity to discuss these issues and clarify the NMDPRA’s position.”
Representatives from International Oil Companies (IOCs), including Princess Edeimu Chukwumah of Chevron Nigeria Limited, James Makinde of Seplat, and Emmanuel Cofie-Spiff of Oando Plc, expressed their objections to oil producers being tasked with levy collection. They acknowledged the importance of the Petroleum Industry Act (PIA) but highlighted gaps in its implementation.
Cofie-Spiff remarked, “We do not have issues with the PIA itself. However, we have identified some gaps, and that’s why we are here to resolve them collaboratively. NMDPRA believes oil producers should collect the levy and remit it, but we have raised concerns about this approach.”
The NMDPRA reaffirmed its commitment to fostering collaboration and addressing stakeholders’ concerns for the benefit of the sector.