NMDPRA Speaks on the Establishment of Africa Energy Bank
- The NMDPRA has once again expressed support for the establishment of the Africa Energy Bank
- The bank is a brainchild of the 18-member African Petroleum Producers' Organisation to fast-track the growth of energy supply infrastructure for the continent
- There is hope that the new bank can begin operating in early 2025 and help provide the necessary fund
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is fully backing the establishment of the $5 billion Africa Energy Bank.
The bank, set to begin operations in Abuja, aims to address financing gaps in critical energy projects across the continent.
Source: Getty Images
Speaking at the Inaugural Meeting of the Petroleum Industry Stakeholders' Forum (PISF) in Abuja, Farouk Ahmed, the NMDPRA's Chief Executive, expressed excitement about the bank's formation, describing it as having the potential to be a game changer in Africa's energy sector.
Ahmed expressed optimism that the bank will provide the necessary funding to enable investment in critical infrastructure across the continent.
Addressing the audience, which included the Ministers of State for Petroleum Resources, Oil, and Gas, he noted that the authority is also supporting the Decade of Gas Program, which is making significant progress in unlocking Nigeria's natural gas resources for industrialization.
He said:
“The program supports gas supply and the development of infrastructure projects.”
According to the Tribune, Ahmed reaffirmed the NMDPRA's dedication to driving business growth within the industry, safeguarding consumer interests, advancing gas development, and promoting a competitive market landscape.
He underscored the agency's commitment to constructive stakeholder collaboration and pledged support for initiatives by the Ministry of Petroleum Resources to fulfil President Bola Tinubu's vision for the sector.
Regulatory changes by NMPDRA
In line with the Petroleum Industry Act (PIA), Ahmed announced that the NMDPRA has enacted 20 regulations to facilitate gas pricing, supply, and utilization projects.
Efforts have also been made to enhance operational transparency and automate regulatory processes, including licensing for new refineries, gas plants, pipelines, and other hydrocarbon facilities.
NMDPRA boss noted.
“Our reviewed Gas Transportation Network Code improves access to natural gas, and we have operationalized the MDGIF as a catalyst for gas infrastructure development.”
He also outlined inter-agency collaborations with security and regulatory bodies, such as the Nigerian Navy and the Standards Organisation of Nigeria (SON), to curb malpractice in the oil industry.
Addressing industry challenges, Ahmed stressed the importance of adhering to regulatory requirements for safety, efficiency, sustainability, and consumer protection.
He encouraged stakeholders to collaborate on open access to facilities and adhere to licensing protocols.
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Source: Legit.ng
