Gas Industrialisation Central to Federal Government's Economic Recovery Drive, NMDPRA Reaffirms
The Federal Government has strongly reaffirmed that gas industrialisation remains a central pillar of Nigeria's economic recovery drive. This commitment was emphasised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which is intensifying enforcement activities and accelerating gas distribution efforts across the nation.
NMDPRA Chief Executive Outlines Regulatory Commitment in Port Harcourt
Engr. Saidu Mohammed, the Chief Executive of the NMDPRA, made this declaration on Friday during an inspection tour of petroleum and gas facilities in Port Harcourt, Rivers State. The tour focused on operations by key players in the midstream and downstream sectors, underscoring the authority's proactive regulatory approach.
Mohammed stated that the NMDPRA remains firmly committed to ensuring strict regulatory compliance while actively engaging with operators throughout the entire value chain. This engagement aims to deepen gas penetration, stimulate robust industrial growth, and significantly reduce production costs for businesses operating nationwide.
Aligning with the Decade of Gas Initiative for Sustainable Growth
According to Mohammed, the inspection activities are directly aligned with the Federal Government's ambitious Decade of Gas initiative. This strategic programme seeks to maximise Nigeria's vast gas resources, establishing them as a solid foundation for sustainable industrialisation and broad economic expansion.
He explained that expanding domestic gas utilisation requires the development of robust and highly efficient distribution networks. These networks are essential for delivering reliable energy to industries and households alike. Access to affordable gas is critical for lowering manufacturing costs and enhancing the overall competitiveness of Nigerian businesses in the global market.
"Distribution networks are absolutely critical to industrialisation because industries thrive when gas is readily available. Gas is cleaner, more efficient, and significantly reduces production costs, which ultimately lowers prices for consumers," Mohammed emphasised during his remarks.
Overarching Objectives and Regulatory Support Framework
The NMDPRA chief further elaborated that the Federal Government's overarching objective is to deploy coordinated activities across the entire oil and gas value chain. This strategy is designed to stimulate industrial growth, create substantial employment opportunities, and boost national productivity levels.
He assured stakeholders that the regulator will continue to support gas distributors and other midstream operators. This support is intended to ensure orderly expansion within transparent technical and commercial frameworks, fully in line with the provisions of the Petroleum Industry Act (PIA).
"Inspecting these facilities underscores the government's firm resolve to reposition the gas sector as a primary catalyst for industrial growth and national prosperity. Transparency remains central to our mandate under the PIA," he stated unequivocally.
Mapping for Gas Distribution Licences and Inclusive Strategy
Mohammed disclosed that the authority is currently engaged in mapping the entire country for the systematic allocation of Gas Distribution Licences. He explained that licensed operators will function within clearly defined franchise areas to methodically expand gas penetration nationwide.
He noted that in areas lacking traditional transmission pipelines, the authority plans to deploy innovative virtual gas distribution systems using Compressed Natural Gas (CNG). This approach is designed to ensure that no region is excluded from the national gas industrialisation agenda.
"These operators may appear small in scale, but they are absolutely vital to the government's aspiration of delivering gas to every corner of the country, particularly to key industrial hubs," he added, highlighting the importance of inclusive growth.
Industrialisation as Key to Development and Affordable Energy
Mohammed stressed that industrialisation remains a fundamental key to national development and sustained economic recovery. He issued a warning that scarcity inevitably leads to high prices, underscoring that increased gas supply is essential for achieving affordable energy costs for both industries and consumers.
While clarifying that the authority does not directly provide gas appliances such as cylinders, he affirmed that the NMDPRA ensures all facilities meet stringent safety and quality standards. This oversight spans the entire process from production through transportation to final consumption.
"Our primary goal is to deliver petroleum gas at the lowest possible cost—from production through transportation to final distribution. We will deploy all regulatory powers granted under the PIA to support operators and ensure nationwide gas availability," he concluded.
Facility Inspections and Industry Stakeholder Responses
During the comprehensive inspection tour, the NMDPRA delegation visited facilities operated by Stockgap Fuels Limited, Matrix Petrochemical Limited, and Central Horizon Gas Company Limited. The visits were conducted to assess operational standards and verify regulatory compliance.
Speaking during the visit, Dr. Stanley Ohamarije, the Chairman of Stockgap Fuels Limited, announced that the company plans to inject five million gas cylinders into the Nigerian market over the next five years. Ohamarije stated that this significant investment would directly support the Federal Government's ten-million-cylinder target and further deepen gas penetration across the nation.
He noted that Stockgap's plant currently boasts a production capacity of 2,500 cylinders per hour. This initiative reflects the company's strong commitment to improving access to gas for all Nigerians while actively supporting national industrial growth objectives.
Expanding Infrastructure Under the Decade of Gas Framework
Also speaking during the inspection, Kehinde Alabi, the Managing Director of Central Horizon Gas Company Limited, confirmed that the firm is aggressively expanding gas infrastructure nationwide. This expansion is specifically designed to support industrialisation under the overarching Decade of Gas initiative.
Alabi stated that the NMDPRA inspection would further encourage the company to scale up gas supply to industries. He described natural gas as a critical driver of industrial growth globally, positioning it as essential for Nigeria's economic transformation.
"CHGC is actively establishing facilities across Nigeria to support comprehensive economic development. We are expanding infrastructure to meet rising demand, and this progress has been made possible by consistent regulatory support through timely licences and approvals," he explained.
Renewed Momentum for Gas as Industrial Backbone
Industry stakeholders have indicated that this high-level visit signals renewed momentum in the Federal Government's concerted push to position gas as the definitive backbone of Nigeria's industrial revival. This strategy is viewed as crucial for achieving long-term economic recovery and sustainable national prosperity.
The NMDPRA's reinforced focus on gas industrialisation, combined with active industry participation, demonstrates a cohesive approach to leveraging Nigeria's natural resources for broad-based economic advancement and energy security.
