The Federal Government is set to scrap the Nigerian National Petroleum Corporation, NNPC, Department of Petroleum Resources, DPR, and Petroleum Products Pricing Regulatory Agency, PPPRA, among others.
In the document released by the Ministry of Petroleum Resources, last weekend, the Federal Government has proposed to merge Nigeria’s oil industry regulatory authorities into a single agency to be known as Petroleum Regulatory Commission, PRC.
The new regulator will incorporate the activities of the existing petroleum regulatory authorities and also cover some new regulatory activities not currently covered as the existing institutional regulatory framework are weak, largely ineffective and inefficient..
“Although the agencies generally work well together, their roles, sometimes, overlap and there are significant information gaps within the government as, sometimes, one institution is unaware of what the other is doing.
“At the same time, policy making capacity has been weak, resulting in NNPC and its subsidiaries setting policy and regulation as well as conducting operations in the petroleum sector. The result is an ineffective and inefficient institutional environment in the petroleum sector in Nigeria.”
The draft policy is also proposing that, in order to reduce the inefficiencies in parastatals in the petroleum sector, the proposed single petroleum sector regulatory authority will operate under the policy supervision of the Minister of Petroleum Resources.