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NMDPRA Plans Gas Distribution License For Improved Supply

BY CHIKA OKEKE, Abuja
As part of President Bola Tinubu’s target to double investment and  penetration of Compressed Natural Gas (CNG), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has finalised plans to issue gas distribution licenses.

This is expected to triple investment in the domestic gas value chain, while attracting credible investors to improve gas distribution networks, reduce transportation costs and stabilise the economy.

Chief Executive of NMDPRA, Mr Rabiu Umar stated this on the sidelines of the 2026 Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) in Abu Dhabi, United Arab Emirates.

He disclosed that NMDPRA’s priority is to provide access to gas before addressing the pricing challenge, adding that the authority had launched the revised network code in Lagos, to give operators confidence in securing gas through the pipelines.

Umar hinted that the NMDPRA’s next grid-mapping is to identify industrial clusters, as well as consider how suppliers can pipe gas to industries to reduce diesel use.

He added: “The more gas we utilise domestically, the lower the cost of production; and the lower the cost of transportation, the more stable the economy will be. It will have an attendant impact on the disposable income of our households.”

“So, before you talk about pricing, I think the first thing is to address access. A few weeks ago, we launched the revision of our network code, which allows people to put in their gas and be certain they will get it out at the end of the pipeline.

“The second thing we are doing is also gridding the whole country to make sure that we identify industrial clusters and how people can pipe their gas to their industries and reduce utilisation of diesel.”

He referred to gridding the country as allowing distant gas producers in places like Lagos to operate near their market, saying that Nigeria is consistently open for business.

Umar informed that NMDPRA also plans to triple domestic gas utilisation to 15 Billion Cubic Feet (BCF) from the current 8 BCF.

“The goal is to double and eventually maybe even triple utilisation of our gas. Today, we produce about 7 to 8 BCF a day, and only about two is utilised domestically; most of it goes out. So, we want to double that to between 12 and 15 BCF. And the idea is that what will be consumed domestically will more than triple,” he added. 






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