Section 32: Functions of the Authority.

The functions of the Authority shall be to—
(a) regulate and monitor technical and commercial midstream and downstream petroleum operations in Nigeria;
(b) regulate commercial midstream and downstream petroleum operations, including—
(i) petroleum liquids operations,
(ii) domestic natural gas operations, and
(iii) export natural gas operations;
(c) determine appropriate tariff methodology, including for—
(i) processing of natural gas,
(ii) transportation and transmission of natural gas,
(iii) transportation of crude oil, and
(iv) bulk storage of crude oil and natural gas;
(d) setting cost benchmarks for midstream and downstream petroleum operations;
(e) provide pricing and tariff frameworks for natural gas in midstream and downstream gas operations and petroleum products based on the fair market value of the applicable petroleum products;
(f) advise the Government, government agencies and other stakeholders on commercial matters relating to tariff and pricing frameworks;
(g) develop open access rules applicable to petroleum liquids and natural gas transportation pipelines, terminal facilities and bulk storage facilities;
(h) regulate the bulk storage, distribution, marketing and transportation pipelines of petroleum products;
(i) grant, issue, modify, extend, renew, review, suspend, cancel, reissue or terminate licences, permits and authorisations for midstream and downstream petroleum operations;
(j) monitor and enforce compliance with the terms and conditions of licences, permits and authorisations issued by the Authority;
(k) keep public registers of—
(i) licences, permits and other authorisations issued by the Authority, and
(ii) renewals, assignments, amendments, suspensions or revocations;
(l) set, define and enforce approved standards and regulations for design, construction, fabrication, operation and maintenance of plants, installations and facilities used or to be used in midstream and downstream petroleum operations;
(m) carry out enquiries, tests, audits or investigations and take other steps to monitor the midstream and downstream petroleum operations;
(n) ensure security of supply, development of the markets and competition in the markets for natural gas and petroleum products;
(o) ensure third party access to facilities under gas processing licences, transportation pipelines and transportation networks and midstream bulk storage facilities, where such facilities are operated for the account of the owner;
(p) develop rules for trading in wholesale gas supplies to gas distributors;
(q) establish customer protection measures in accordance with the provisions of this Act;
(r) publish decisions, directions or determinations of the Authority that have implications for customers and industry participants, together with the reasons for such decisions, directions or determinations which, in the opinion of the Authority, shall be published.
(s) promote the interests of customers with regard to midstream and downstream petroleum operations.
(t) promote the principles of economic development of infrastructure with regard to midstream and downstream petroleum operations;
(u) promote competition and private sector participation in midstream and downstream petroleum operations;
(v) determine the domestic gas demand requirement and the crude oil required for the domestic crude oil supply obligation and ensure that economic and strategic domestic demands are met;
(w) regulate the supply, distribution, marketing and retail of petroleum products;
(x) administer and monitor strategic stocks of petroleum products;
(y) monitor the application of petroleum product prices, pricing formulae and frameworks;
(z) monitor market behaviour with respect to midstream and downstream petroleum operations;
(aa) identity, investigate and prevent abuse of dominant positions and restrictive business practice with regard to midstream and downstream petroleum operations;
(bb) establish, monitor, regulate and enforce technical, health, environmental and safety measures relating to midstream and downstream petroleum operations;
(cc) develop, specify and monitor technical and safety standards for wholesale marketing, processing plant, retail marketing and bunkering of petroleum products;
(dd) ensure the accuracy of metering pumps and related measurement facilities in midstream and downstream petroleum operations;
(ee) define and enforce approved standards and guidelines for the design, procurement, construction, operation and maintenance of plants, installations and facilities in the midstream and downstream petroleum operations;
(ff) establish laboratories to provide data storage and testing, quality assurance and certification of crude oil, natural gas and petroleum products and regulate the activities of third party laboratories used in midstream and downstream petroleum operations;
(gg) keep and classify records, data and reports as may be prescribed in regulations or guidelines;
(hh) ensure the promotion of safety and development of midstream and downstream petroleum operations;
(ii) issue certificates of quality and quantity to exporters of crude oil, LNG and petroleum products;
(jj) implement and enforce compliance with laws, regulations and policies relating to midstream and downstream petroleum operations;
(kk) establish parameters and codes of conduct for operators in the midstream and downstream petroleum operations;
(ll) monitor the financial viability of operators with respect to midstream and downstream petroleum operations;
(mm) develop, maintain and publish a database of midstream and downstream petroleum operations;
(nn) monitor and ensure that the quality of petroleum products sold in Nigeria conform to defined specifications;
(oo) establish, monitor and ensure compliance with the standards for the processing of petroleum products in Nigeria;
(pp) request information and documents relating to licenced activities, including pricing information and macro-economic data from any licensee or permit holder in midstream and downstream petroleum operations;
(qq) publish or direct licensees, lessees and permit holders to publish, in the interest of the public, information relating to midstream and downstream petroleum operations in accordance with applicable law or regulation;
(rr) regulate the domestic base price and the prices applicable to wholesale customers of the strategic sectors and gas distributors;
(ss) perform such other function as may be necessary to give effect to the provisions of this Act;
(tt) ensure and monitor performance parameters of industry players and the quality of service provided by servicing companies in the midstream and downstream petroleum industry; and
(uu) conduct studies relating to the economy and efficiency and effectiveness of the midstream and downstream petroleum industry.