The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced steps to accelerate gas distribution nationwide to support industrialisation and lower production costs, emphasising strict compliance and industry growth.
Mr Saidu Mohammed, Authority Chief Executive of the NMDPRA, made the disclosure on Friday in Port Harcourt during an inspection of petroleum and gas facilities in Rivers.
Mohammed said the authority was committed to engaging with operators in the midstream and downstream segments and to providing regulatory support to achieve targeted outcomes.
He said the inspection of facilities formed part of the Federal Government’s commitment to the Decade of Gas initiative, a campaign focused on utilising Nigeria’s large domestic gas resources for growth.
According to him, expanding domestic utilisation requires robust distribution networks. These networks must deliver energy efficiently to industries and consumers.
“Distribution networks are critical to industrialisation because industries thrive when gas is available.
“Gas provides a cleaner and more efficient energy source that lowers production costs and ultimately reduces consumer prices,” Mohammed said.
He added that the Federal Government’s overarching goal was to deploy activities across the oil and gas value chain to drive industrial growth.
The NMDPRA chief said the government’s priority was to deepen domestic gas utilisation alongside exports to strengthen the national economy.
He said the regulator would continue to support gas distributors and other midstream operators. This will help ensure orderly expansion within transparent and clearly defined technical and commercial frameworks.
“Inspecting these facilities underscores the 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 Petroleum Industry Act (PIA),” he said, referring to Nigeria’s legal framework governing the oil and gas sectors.
Mohammed disclosed that the authority was mapping the entire country. This is for the allocation of Gas Distribution Licences.
He said licensed distributors would operate in defined franchise areas to expand gas penetration nationwide.
According to him, where transmission pipelines—large pipelines used to transport gas over long distances—are unavailable, the authority would deploy virtual gas distribution through Compressed Natural Gas (CNG), which involves moving gas in pressurised containers.
“These operators may appear small, but they are vital to the government’s aspiration of delivering gas to every corner of the country, particularly industrial hubs,” he said.
Mohammed noted that industrialisation remained key to national development and economic recovery, adding that the government was working to increase gas penetration by expanding access to appliances.
He clarified that while the authority did not provide appliances such as gas cylinders, it ensured that facilities met the required standards from production to final consumption.
Mohammed warned that scarcity inevitably drives up prices, stressing that increased supply is essential to achieving affordable energy costs.
According to him, the authority would deploy all regulatory powers granted under the PIA to support operators and ensure nationwide gas availability.
“Our goal is to make petroleum gas widely accessible and affordable to industries and consumers nationwide, supporting Nigeria’s economic growth and industrial expansion,” he concluded.
The delegation inspected facilities operated by Stockgap Fuels Limited, Matrix Petrochemical Limited, and Central Horizon Gas Company Limited to assess their operational standards.
Speaking, Dr Stanley Ohamarije, Chairman of Stockgap Limited, said the company planned to inject 5 million gas cylinders into the market over the next five years.
Ohamarije said the investment would support the government’s 10-million-cylinder target and deepen gas penetration, noting that Stockgap’s plant has a production capacity of 2,500 cylinders per hour.
He added that the initiative reflected the company’s commitment to improving access to gas for Nigerians and supporting national industrial growth.
On his part, Mr Kahide Alabi, Managing Director of Central Horizon Gas Company Limited (CHGC), said the firm was expanding gas infrastructure across the country. This supports industrialisation under the Federal Government’s Decade of Gas initiative.
Alabi said the NMDPRA’s visit would further encourage the company to scale up gas supply to industries.
“Natural gas remains a major driver of industrial growth globally. CHGC is establishing facilities across Nigeria to support economic development,” he said.
He added that the company is expanding its infrastructure to meet rising demand. He attributed its progress to regulatory support, including timely licences and approvals.
