Els William
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has unveiled plans to accelerate gas distribution across the country, tightening regulatory compliance while expanding access to gas as a key driver of industrialisation and lower production costs.
The Authority’s Chief Executive, Mr. Saidu Mohammed, disclosed this on Friday in Port Harcourt during an inspection tour of petroleum and gas facilities in Rivers State, as part of ongoing efforts to reposition Nigeria’s gas sector under the Federal Government’s Decade of Gas initiative.
Mohammed said the regulator was intensifying engagement with operators across the midstream and downstream segments of the oil and gas industry, while providing the regulatory support required to achieve sustainable growth and efficiency.
According to him, expanding domestic gas utilisation remains central to Nigeria’s industrial ambitions, stressing that robust distribution networks are critical to ensuring reliable energy supply to industries and consumers.
“Distribution networks are critical to industrialisation because industries thrive when gas is available,” Mohammed said. “Gas provides a cleaner and more efficient energy source that lowers production costs and ultimately reduces consumer prices.”
He explained that the Federal Government’s broader objective was to deploy activities across the oil and gas value chain to stimulate industrial growth, deepen domestic gas utilisation, and strengthen the national economy alongside exports.
Mohammed said the NMDPRA would continue to support gas distributors and other midstream operators to ensure orderly sector expansion within transparent and clearly defined technical and commercial frameworks, in line with the Petroleum Industry Act (PIA).
“Inspecting these facilities underscores government’s resolve to reposition the gas sector as a catalyst for industrial growth and national prosperity. Transparency remains central to our mandate under the PIA,” he added.
The NMDPRA chief further disclosed that the authority was currently mapping the entire country for the allocation of Gas Distribution Licences, a move aimed at expanding gas penetration nationwide. Under the plan, licensed gas distribution companies will operate within clearly defined franchise areas.
Where transmission pipelines are unavailable, Mohammed said the regulator would deploy virtual gas distribution models, particularly through Compressed Natural Gas (CNG), to ensure gas reaches underserved areas.
“These operators may appear small, but they are vital to government’s aspiration of delivering gas to every corner of the country, particularly industrial hubs,” he noted.
He warned that scarcity inevitably leads to higher prices, stressing that increased supply remains the most effective path to affordable energy costs. Mohammed said the authority would deploy all regulatory powers granted under the PIA to support operators and ensure nationwide gas availability.
“Our goal is to deliver petroleum gas at the lowest possible cost, from production through transportation to distribution,” he said.
During the visit, the NMDPRA delegation inspected facilities operated by Stockgap Fuels Limited, Matrix Petrochemical Limited, and Central Horizon Gas Company Limited to assess their operational standards and compliance levels.
Speaking during the inspection, the Chairman of Stockgap Limited, Dr. Stanley Ohamarije, said the company planned to inject five million gas cylinders into the Nigerian market over the next five years. He said the investment would support the Federal Government’s target of deploying 10 million cylinders nationwide to deepen gas penetration.
Ohamarije disclosed that Stockgap’s plant has a production capacity of 2,500 cylinders per hour, adding that the initiative underscored the company’s commitment to improving access to gas and supporting national industrial growth.
Also speaking, the Managing Director of Central Horizon Gas Company Limited (CHGC), Mr. Kahide Alabi, said the firm was expanding gas infrastructure across the country to support industrialisation under the Decade of Gas initiative.
Alabi said the NMDPRA’s visit would further encourage the company to scale up gas supply to industries, noting that natural gas remained a critical driver of industrial growth globally.
“CHGC is establishing facilities across Nigeria to support economic development,” he said, attributing the company’s expansion to regulatory support through timely licences and approvals.
Industry analysts say the regulator’s renewed push signals a more deliberate attempt to translate Nigeria’s vast gas reserves into tangible industrial and economic gains, particularly at a time when energy costs remain a major constraint to manufacturing and broader economic recovery.