The Nigerian Midstream and Downstream Petroleum Regulatory Authority has announced that the Federal Government will commence the shutdown of unlicensed petroleum product dealers starting from June 1, 2023.
The government emphasized that no unlicensed dealer would be permitted to load products after this date, stating, “No licence, no loading of any petroleum product.” The warning was issued during a stakeholders’ engagement in Abuja.
The Executive Director of the NMDPRA, Ogbugo Ukoha, stated that if there is no compliance, licensed operators supplying petroleum products to unlicensed facilities will also be shut down. He further encouraged operators to explore opportunities in the gas value chain, such as Liquefied Natural Gas, Liquefied Petroleum Gas, and Autogas, as a means to hedge against potential global uncertainties in the supply of petrol and diesel.
The government has enacted various initiatives and policy frameworks to promote gas utilization in Nigeria, with the hope that fostering a compliance culture will lead to safer and sustainable facilities.
The shutdown move forms part of the government’s efforts to regulate the petroleum industry and ensure compliance with licensing procedures and standards. By enforcing licensing requirements and promoting the use of gas derivatives, the authorities aim to improve domestic gas utilization and reduce reliance on traditional petroleum products.
Operators have therefore been urged to obtain licenses and seize the opportunities presented by the gas value chain to ensure their businesses remain in compliance and adapt to evolving energy needs.
