The Nigerian Midstream and Downstream Petroleum Regulatory Authority has come under scrutiny over alleged opacity in its operations, but the regulator says its activities are transparent, reports DARE OLAWIN
To many Nigerians, regulatory agencies like the Nigerian Midstream and Downstream Petroleum Regulatory Authority should make transparency one of their core values, updating the country about their monthly, quarterly, and yearly activities. Examples of this can be seen in sister regulatory agencies like the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Electricity Regulatory Commission. A peep into the websites and social media handles of the NUPRC and the NERC gives an insight into the activities of these agencies, underscoring the importance of transparency.
Recently, the NUPRC opened its books to the public, declaring its income and expenditure. It revealed the activities of the previous year, the volume of oil and gas produced, the rig disposition, the acreage report, the number of casualties recorded, and host community remittances, among others. The NERC also did the same in the power sector, giving detailed reports of power generation and consumption, recoveries and losses, remittances, grid condition, consumer complaints, debts, fines, and others.
However, stakeholders have said this could not be said of the NMDPRA, whose website ‘lacks substantial content. A visit to the NMDPRA site shows that it is essentially an ‘empty shopfront.’ A click on the oil and gas data menu leads nowhere. The last daily fuel truck out report was in 2023. It could be recalled that the new leadership of the Nigerian National Petroleum Company Limited identified the significance of transparency and launched the company’s monthly report.
Calls for resignation
Recently, there have been reports that some agitators stormed the Federal Capital Territory to demand the resignation of the NMDPRA Chief Executive, Farouk Ahmed, alleging a lack of transparency in his activities, a request the agency vehemently rebuffed. The protesters, who claimed to be members of an organisation named the Situation Room for Oil Sector Reforms, occupied the offices of the Attorney-General of the Federation, the Independent Corrupt Practices and Other Related Offences Commission, and the Code of Conduct Bureau in Abuja last month, asking Ahmed to go.
Also, another group known as the Coalition for Transparency called on Ahmed to publicly declare his assets.
The convener of the Coalition, Obinna Francis, had alleged that Ahmed spent over $5.5m on the foreign education of his four children, insisting that the amount was grossly inconsistent with the earnings of a public official.
In the same vein, a group under the auspices of the Young Professionals Forum of Nigeria also took to the streets, urging the Federal Government to immediately suspend the NMDPRA boss over an alleged financial scandal. The group, through its coordinator, Felicia Daniels, alleged that Ahmed’s tenure had been stained by grave allegations of corruption, abuse of power, regulatory compromise, and betrayal of the Nigerian people.
According to the group, Ahmed was entrusted with the leadership of a strategic agency created under the Petroleum Industry Act, and he was meant to be the reform flagship in Nigeria’s petroleum industry by fostering transparency, enforcing regulatory integrity, and protecting the long-abused interests of Nigerian citizens in the midstream and downstream oil sectors. The group stated that, under Ahmed’s leadership, NMDPRA issued permits for the importation of diesel with sulphur content as high as 2,000 parts per million, 40 times the standard recommended by the United Nations Environment Programme and enforced by most African nations.
NMDPRA defends boss
Reacting, the regulatory agency NMDPRA debunked all the allegations, describing them as an orchestrated smear campaign based on false allegations against Ahmed and its leadership.
In a statement, the NMDPRA said its attention was drawn to “a number of media reports and orchestrated publications in which certain faceless groups have called for the resignation of the Chief Executive of the NMDPRA, Engr. Farouk Ahmed.”
It noted that the calls were devoid of any specific claims of wrongdoing, saying they consisted only of bold declarations lacking substance or detail, and this highlighted the “frivolity” of the campaign.
“The Authority wishes to state unequivocally, and for the avoidance of doubt, that the allegations being peddled are false, without merit, and bereft of any factual foundation. The absence of specific claims or verifiable details is, in itself, a clear indication of their falsity and a strong signal that these efforts are not driven by any genuine concern for accountability,” the regulator stated.
The agency prided itself as an institution anchored on the principles of transparency, accountability, and compliance, stating that its fiscal and financial activities were subjected to the highest levels of regulatory scrutiny, not only internally but also through periodic assessments by external auditors as well as the Office of the Auditor-General for the Federation and the Office of the Accountant-General. It also mentioned that the National Assembly was one of the bodies scrutinising its records, wondering how cases of financial misappropriation would not have been pointed out by the various bodies.
The agency explained, “NMDPRA is an institution anchored on the principles of transparency, accountability, and compliance. Its fiscal and financial activities are subjected to the highest levels of regulatory scrutiny, not only internally but also through periodic assessments by external auditors of international repute, as well as oversight from the Office for the Auditor-General of the Federation and the Office of the Accountant-General.
“In addition, the National Assembly, through its relevant committees, examines every aspect of NMDPRA budgetary provisions and expenditure lines. Under such a rigorous accountability framework, it is inconceivable that any credible allegation of misappropriation or abuse of office could escape detection, let alone persist without redress.”
The NMDPRA wondered how the protesters got the resources to print “expensive” banners and placards and instant access to the media: “The Authority finds it curious, therefore, that a group hitherto unknown to legal or civil society circles would suddenly emerge with expensively printed banners, professionally produced placards, and instant access to the media. These are resources that are far from spontaneous in either cost or coordination. Such energy, if truly in service of the public interest, would have been better directed toward seeking clarifications through existing institutional channels.
“While the Authority welcomes demands for transparency and accountability, as provided for under the Freedom of Information Act and reflected in our operations, we believe such engagements must follow due process.”
While saying it is ready to collaborate with any genuine organisation, the agen expressed concern that the protesters would have approached it, alleging that those calling for Ahmed’s resignation were acting on the script of those who are unsettled by the “reforms” being implemented in the midstream and downstream sectors of the petroleum industry by Ahmed.
“NMDPRA remains open and willing to collaborate with any group that is genuinely committed to the public interest. If the organisers of these protests and publications were truly concerned about good governance, they would have approached the Authority through the established accountability mechanisms. Their choice to bypass these channels and stage a public spectacle only reinforces what discerning members of the public already suspect. This is not a protest. It is a production, and the script appears to serve vested interests unsettled by the reforms being implemented in the midstream and downstream sectors of our petroleum industry,” the statement added.
Despite the perceived opacity in the agency, the regulator boasted about Ahmed’s leadership, describing him as a man committed to transparency, efficiency, and equitable distribution of products nationwide. Adding that those attacking its leadership were the ones who profit from opacity.
The statement concluded, “Engr. Farouk Ahmed’s leadership has prioritised efficiency, transparency, and the full implementation of the Petroleum Industry Act (2021), which seeks to sanitise the sector and ensure the equitable distribution of petroleum products nationwide. The efforts of the Authority under his stewardship have enhanced operational stability, expanded access to regulated information, and established a level playing field for all operators in the sector. These are moves that have inevitably unsettled those who profit from opacity and disorder.
“NMDPRA urges the public and all critical stakeholders in the oil and gas industry to disregard these ludicrous accusations. They are the handiwork of nefarious elements determined to distract the Authority from its statutory mandate and frustrate the positive strides enabled by the bold reforms championed by President Bola Tinubu.
“The Authority remains committed to transparency, service delivery, and the advancement of Nigeria’s energy security.”
Conclusion
As allegations mount and protests persist, the NMDPRA finds itself at the centre of growing scrutiny over transparency and accountability in Nigeria’s midstream and downstream oil sector. While the Authority insists that it operates under strict regulatory oversight and has nothing to hide, critics argue that a truly transparent agency would proactively publish its data and open its books to the public, as its counterparts in the sector have done. For many stakeholders, the debate underscores a deeper demand for openness, clarity, and reform in one of the nation’s most critical regulatory bodies. It was argued that whether the NMDPRA can restore public confidence will depend not just on press statements, but on visible actions that align with its statutory mandate.
