Nigeria Adopts Gas Policy To Change Revenue Base

The Federal Government has officially trimmed down Nigeria’s total dependence on oil for its economy, a major move to set the country’s energy prosperity free from total collapse.

Minister of State for Petroleum Resources,  Dr. Ibe Kachikwu on Wednesday announced the approval of the National Gas Policy by the Federal Executive Council and stated that the development would give rise to the establishment of a single independent petroleum regulatory authority.

Currently, the policy and regulatory institutions overseeing the oil and gas industry in the country are the Ministry of Petroleum Resources, Department of Petroleum Resources, Nigeria Content Development and Monitoring Board, Petroleum Products Pricing Regulatory Agency and the Petroleum Equalisation Fund.

But in the NGP, which was approved by FEC last week, the five agencies will be collapsed into one regulatory authority.

 Before its approval, a copy of the draft NGP obtained by our correspondent, stated that the government was desirous of reducing the current regulatory overlaps and consolidating the existing regulatory agencies into a single one.

It stated, “The Federal Government is determined that there should be a new single regulatory agency for the petroleum sector in Nigeria, which will replace the existing regulatory agencies.

“The new agency will cover the whole petroleum sector, incorporate the activities of the existing petroleum regulatory authorities, and also cover some new regulatory activities not currently covered. 

It will essentially be responsible for the economic and technical regulation of the gas sector and shall have licensing, investigative, monitoring and dispute resolution powers.” 

The policy outlined the divisions, departments and functions envisaged to form part of the new petroleum regulatory agency to include upstream oil and gas regulation; midstream and downstream gas regulation; midstream and downstream oil regulation; health, safety and environment compliance; consumer protection; and compliance monitoring, among others.