The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has commenced the rollout of gas licenses to qualified players in the sector, following frequent collapse of the national grid.
The grid has so far recorded one collapse this year after more than 10 incidents in 2024 had plunged several parts of the country into hours of total darkness.
A statement by NMDPRA’s media unit signed by Jemilah Adama, said the development is in line with President Bola Tinubu’s directive to ensure all power generation assets receive the gas needed for a robust expansion of the existing national distribution grid system.
“The authority has, however, given a note of warning to all off-takers to ensure the steady supply of gas to the generation companies or have their license revoked as no act of sabotage will be tolerated,” the statement added.
Meanwhile, the federal government, today, Tuesday announced award of 10 gas Distribution Licenses to six top-tier firms in the country.
Louis Ibah, the Spokesperson to the Minister of State Petroleum Resources (Gas), conveyed this in a statement.
He disclosed that the beneficiary firms are NNPC Gas Marketing Limited, Shell Nigeria Gas Ltd, AXXELA, NIPCO PLC, Central Horizon Gas Company and Falcon Corporation Limited.
Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo,in an address at the event in Abuja,explained that the move reaffirms the government’s commitment to sustainable development of Nigeria’s vast gas resources.
Ekpo commended President Bola Ahmed Tinubu’s visionary leadership, which enabled the license issuance, and appreciated the NMDPRA’s regulatory reforms under the leadership of the Authority Chief Executive, Mr. Farouk Ahmed.
He said the issuance of the licenses is expected to increase access to gas for domestic and industrial use, driving economic growth and development nationwide. He said access to affordable and sustainable energy, like gas, is key to unlocking Nigeria’s entrepreneurial potential.
“This step is not just about meeting regulatory requirements; it is about building a future where gas serves as a foundation for economic growth, industrialization, and improved quality of life for all Nigerians,” Ekpo said.
“Our president gave gas its unique identity and has enabled several opportunities in the gas space. The gas industry has expanded rapidly in terms of business opportunities and governmental directives because of President Bola Ahmed Tinubu’s crucial position.”
The licenses were issued in line with Section 148 of the Petroleum Industry Act (PIA) 2021, which mandates the NMDPRA to issue Gas Distribution Licenses to qualified individuals and organizations. This move is part of the government’s efforts to implement the PIA and Gas Distribution Regulations of 2023.
He said the initiative is expected to open up opportunities across several key sectors, including Energy-Intensive Industries, Power Generation, Clean Cooking Initiative, Gas Reticulation, Compressed Natural Gas Mobility, and Energy Parks and Special Economic Zones.
The added that these opportunities align with the government’s vision of “Gas to Prosperity,” where natural gas plays a transformative role in fostering industrialization, creating employment opportunities, and generating revenue for sustainable national development.
He said a thriving domestic gas market is crucial to achieving the government’s ambitions under the Decade of Gas Initiative
