The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that oil and gas companies operating in free trade zones and other special economic areas in Nigeria must still comply fully with national petroleum laws.

In a recent circular to industry operators, the regulator said investment incentives offered in export processing zones, industrial parks, and similar areas do not remove the obligation to follow the provisions of the Petroleum Industry Act 2021.

The agency stressed that all midstream and downstream petroleum activities remain under its supervision, regardless of location. This includes refining, storage, transportation, pipelines, terminals, import and export operations, distribution, and related services.

According to the NMDPRA, companies must obtain the necessary licences, permits, or approvals before beginning any petroleum operations. It warned that operating without authorisation would lead to enforcement actions and sanctions.

The regulator also stated that its oversight extends nationwide, including territorial waters, the continental shelf, and all designated economic and industrial zones.
It further emphasised that other government agencies must consult it before issuing any policy or directive that could affect petroleum operations, reinforcing its central role in sector regulation.

The authority added that where there is any conflict between existing laws, the Petroleum Industry Act will take precedence.

The latest directive is aimed at strengthening compliance and ensuring consistent regulation of petroleum activities across all parts of the country, including special economic zones.