The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is facing mounting opposition from fuel marketers over its newly proposed regulations that would govern the abandonment and decommissioning of fuel retail outlets across the country.
The draft regulation, unveiled at the Stakeholders’ Consultation Forum on the Proposed Midstream and Downstream Petroleum Safety and Environmental Regulations 2025, mandates formal procedures for the closure of retail fuel stations, especially those no longer in use or deemed unsafe.
The proposal, part of a broader consolidation of existing safety, environmental, and decommissioning frameworks within the petroleum sector, has triggered resistance from downstream operators who argue the rules are overreaching and unnecessary for their segment of the industry.
Retail operators, while acknowledging the importance of environmental protection, contend that the decommissioning rules should apply solely to midstream facilities—such as storage depots and pipelines—rather than small-scale retail outlets like filling stations.
During the forum held at the NMDPRA headquarters in Abuja, some stakeholders cautioned that the new rules would introduce unnecessary compliance burdens and costs for smaller operators already grappling with regulatory pressures and market instability.
However, NMDPRA officials remain firm in their position, stating that unregulated closure of petrol stations could pose serious environmental risks, particularly the contamination of underground water sources due to leaking storage tanks.
Speaking at the event, NMDPRA’s Secretary and Legal Adviser, Joseph Tolurushe, clarified that the proposed regulation is a consolidation of three separate regulations introduced in 2023—covering safety, decommissioning, and environmental standards—into a unified framework. He noted that the goal is to streamline regulatory requirements, reduce duplication, and bring the industry closer to international best practices.
“In jurisdictions like Norway, they have just one or two overarching regulations. Our aim is not to overburden operators but to simplify compliance and promote self-regulation,” Tolurushe stated.
He emphasized that the guidelines would not be overly cumbersome, but would ensure that filling stations scheduled for closure are properly dismantled or secured to prevent long-term environmental degradation.
In his remarks, the Authority Chief Executive (ACE), Farouk Ahmed, represented by Ogbugo Ukoha, Executive Director, Distribution System, Storage and Retailing Infrastructure, noted that the move is in alignment with Section 33 of the Petroleum Industry Act (PIA), which empowers the NMDPRA to make regulations governing all midstream and downstream activities in Nigeria.
“The 2025 Safety and Environmental Regulations consolidate previous rules to eliminate inconsistencies and enhance industry-wide compliance. They also establish a consistent approach for managing health, safety, and environmental risks—including procedures for decommissioning abandoned retail outlets,” Ahmed said.
According to him, the consolidation will not only simplify regulatory compliance for operators but also strengthen the country’s environmental safeguards in a sector long plagued by weak enforcement.
The NMDPRA concluded the session by assuring stakeholders that all feedback from the forum would be reviewed before finalizing the document. Once revised, the regulation will be forwarded to the Ministry of Justice for legal vetting and subsequently published in the government gazette—a process expected to be completed within a month.
Industry analysts say the new rule, if enacted, could transform operational standards in the downstream sector, encouraging more responsible closure of fuel stations and improved environmental oversight.
However, concerns persist among small and medium-scale marketers that the regulation may disproportionately affect them, especially in regions with limited access to capital and infrastructure for full-scale decommissioning.
As the industry continues to evolve under the framework of the Petroleum Industry Act, the balance between environmental safety and operational feasibility will remain a key issue in future regulatory dialogues.