Iledare Hails NUPRC–NMDPRA Partnership as Turning Point for PIA Implementation
Renowned petroleum economist and energy policy expert, Professor Wumi Iledare, has commended the emerging collaboration between the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), describing it as a potentially transformative moment in the implementation of Nigeria’s Petroleum Industry Act (PIA).
Reacting to reports that the two regulators are strengthening cooperation to improve efficiency across the oil and gas value chain, Iledare said the development signals a welcome departure from the historically fragmented and protectionist regulatory culture that has constrained sector performance for decades.
According to him, the growing synergy represents one of the clearest indications since the PIA came into force that Nigeria’s petroleum regulatory institutions may finally be aligning with the law’s intent of clear role separation, coordination, and accountability.
“For the first time under the PIA framework, we are seeing signs that inter-agency collaboration could replace turf protection, which has long undermined effective petroleum sector governance,” Iledare observed.
He stressed that a critical challenge remains the complete dismantling of the legacy institutional culture inherited from the former Nigerian National Petroleum Company (NNPC), now Nigerian National Petroleum Company Limited (NNPCL). According to him, unless this legacy mindset is fully eliminated from the regulatory environment, the PIA’s core objective of separating policy, regulation, and commercial operations could be compromised.
Iledare noted that, structurally, the current regulatory architecture largely aligns with what he described as the “Quad-E” benchmarks—efficiency, effectiveness, equity, and economic sustainability—which are essential for a functional and investor-friendly petroleum sector.
However, he cautioned that strong institutional frameworks alone are insufficient without disciplined leadership and ethical governance. He warned that the boards and management of both regulators must remain vigilant against risks identified in Agency Theory, including elite capture, regulatory capture, and management self-preservation.
“If these risks are not consciously and consistently managed, even the best-designed structures can fail,” he said, adding that leadership behaviour will ultimately determine whether the emerging partnership delivers lasting value.
Iledare expressed cautious optimism that sustained cooperation between NUPRC and NMDPRA could help rebuild regulatory credibility, attract new investment, and ensure that governance practices align with both the spirit and the letter of the Petroleum Industry Act.
He added that the Oil and Gas Energy Professionals (OGEP) Forum of the Petroleum Economics and Welfare Initiative (PEWI) has extended its goodwill to both regulators and will continue to closely monitor developments, expressing hope that the evolving synergy will translate into tangible benefits for the sector and the Nigerian economy.
