Reps Committee dismisses call for NMDPRA board dissolution, CEO’s removal

The House of Representatives Downstream Committee has dismissed calls for the dissolution of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the removal of its Chief Executive, Alhaji Ahmed Farouk, describing them as baseless, contrary to the Petroleum Industry Act (PIA), and potentially damaging to the progress achieved through leadership stability, policy consistency, and an investor-friendly environment in the downstream sector.

At a special session presided over by the Committee Chairman, Hon. Ikenga Imo Ugochinyere, and attended by committee members, the Committee unanimously resolved that the calls for dissolution and removal constitute a clear violation of the PIA.

According to Hon. Ugochinyere, Section 41 of the PIA provides robust tenure security to promote stability in the sector. He stressed that lawmakers, having enacted the PIA to ensure growth and stability, cannot support any action that undermines the law’s intent and provisions.

He further explained that the National Assembly deliberately included tenure protection clauses in the PIA to inspire investor confidence, ensure policy consistency, and maintain sector stability for a defined period. At the end of the tenure, it is the President who has the constitutional authority to extend the appointment or allow the appointee to exit.

The Chairman noted that after reviewing the complaints and concerns raised, the Committee found no justification to support the calls for dissolution or removal, especially since the issues raised were not related to the performance or effectiveness of the regulatory agencies, but rather stemmed from a desire for a “change of guard.”

The Committee strongly asserted that since the enactment of the PIA, both the downstream and upstream sectors have witnessed significant progress, particularly in restoring investor confidence and attracting fresh investment running into billions of dollars.

“We enacted the PIA for a reason and cannot support any violation of its provisions, which would undermine decades of legislative work. Investor confidence, transparency, and clearly defined processes are some of the key gains we are now witnessing,” Ugochinyere stated.

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He emphasized that while investigative agencies are free to carry out their statutory functions and prosecute any individual found to have violated the law, the Committee stands firmly against any attempt to disregard the provisions of the PIA or to remove the head of a regulatory agency without due process.

“If we allow such a precedent, it would send the wrong signal to international investors in the petroleum sector, who would then see Nigeria as a risky environment where the rule of law is not guaranteed,” he warned.

On these grounds, the Committee dismissed the calls for dissolution and removal as inconsistent with the PIA, which clearly stipulates tenure provisions.

Regarding budgetary concerns, Ugochinyere described the allegations of financial mismanagement as unfounded, noting that some of the figures cited far exceeded the agency’s total capital budget. “If the alleged misappropriated amount surpasses the actual budget, how could anyone claim funds were stolen that never existed?” he queried.

He added that the NMDPRA is currently operating under financial strain, struggling to meet salary obligations and having refrained from recruitment over the past six to seven years due to budgetary challenges.

Importantly, since the implementation of the PIA, the two regulatory agencies, NMDPRA and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) have undertaken significant reforms aligned with the objectives of the PIA in both upstream and downstream sectors.

“The investment inflow since the establishment of these two regulatory bodies has exceeded $20 billion,” the Committee Chairman concluded.

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