The House of Representatives Committee on Petroleum Resources (Downstream) has dismissed calls for the dissolution of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the removal of its Chief Executive, Engr. Farouk Ahmed, describing such demands as baseless, unlawful, and capable of undermining the stability and progress recorded in the downstream sector.
At a special session presided over by its Chairman, Hon. Ikenga Imo Ugochinyere, the committee emphasized that the Petroleum Industry Act (PIA), particularly Section 41, guarantees tenure security to foster stability, policy consistency, and investor confidence in the petroleum sector. Members unanimously agreed that any attempt to truncate this provision would contradict the spirit and intent of the PIA, which was painstakingly enacted by the National Assembly to drive sectoral reform.
“The PIA was crafted to ensure certainty in leadership and continuity of policy,” Ugochinyere said. “It is therefore illogical and counterproductive to advocate for the removal of a chief executive whose tenure is protected by law, especially when no proven breach of duty has been established.”
He added that the committee carefully reviewed the issues raised in the petitions but found that the complaints centered more on personal interests and agitation for a change in leadership, rather than any concrete evidence of regulatory failure or misconduct.
The committee also stressed that the downstream and upstream sectors have experienced significant growth since the PIA came into effect, with investor confidence rebounding and foreign investments totaling over $20 billion flowing into the industry. It noted that these gains are the direct result of regulatory clarity, transparency, and stability provided by the NMDPRA and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
“We cannot destroy the very law we enacted,” Ugochinyere continued. “The National Assembly put in place a framework that ensures regulatory certainty. The moment we start disregarding those provisions, we will send a dangerous signal to international investors that Nigeria does not respect its own laws.”
On allegations of financial impropriety, the committee described some of the claims as illogical and exaggerated, pointing out that the figures quoted by petitioners far exceeded the agency’s total capital budget, making the claims practically impossible.
The lawmakers further noted that the NMDPRA is currently grappling with financial difficulties, including the inability to pay salaries and the lack of staff recruitment in recent years. Despite these challenges, the agency and its counterpart, NUPRC, have been able to deliver on their mandates under the PIA, instituting much-needed reforms in their respective spheres.
While reiterating that no agency is above scrutiny, the committee cautioned against circumventing due process or undermining the PIA. It called on relevant investigative bodies to discharge their duties within the bounds of the law, without prejudicing the tenure protections clearly provided in the Act.
