By Mariam Eko

The Nigerian Midstream, Downstream Petroleum Regulatory Authority, NMDPRA, is set to review issues on wholesale gas supply operations following a stakeholders’ sensitization meeting in Lagos.

Representing the Authority Chief Executive, the Legal adviser and Secretary of NMDPRA, Dr. Joseph Tolorunse,  during the meeting, harped on  the issue of licensing and concerns related to the 0.5 per cent levy imposed by the Midstream Downstream Gas Infrastructure Fund.

According to him, the meeting was held to address issues and concerns raised during the first phase of the NMDPRA sensitization program in Abuja, with the aim to reach an alignment that will enable the effective implementation of the wholesale supply operations.

At the meeting, the oil producers argued the Petroleum Industry Act, PIA, did not provide for them to be levy collectors.

Reacting to this,  Tolorunse,  while speaking to newsmen, said  “one of the arguments raised is the implementation of collection of government revenues, especially the 0.5 percent wholesale price of petroleum products and natural gas.    

“The PIA made provision in section 37 and 52 for collection of levies but the thorny issue is that the Act did not specify the entity to collect it but regulation has been made to provide that the supplier should collect it and remit to the government.

“We have explained to them here, that the charges are not on the supplier but rather on the wholesale customer. The convenient point is to collect this levy at the wholesale point as it forms part of the wholesale price”.

He added, “since the Act was passed in 2021, the timing for implementation was part of our pushback  as we need to implement regulations and also make guidelines that will specify the procedures for these levies’ collections”.