NMDPRA Calls for Expansion of Gas Distribution Infrastructure to Drive Economic Growth
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stressed the need for accelerated investment in gas distribution infrastructure to ensure that Nigeria’s vast natural gas reserves translate into sustainable economic growth, industrial development and improved energy access.
Speaking at the Association of Local Distributors of Gas (ALDG) Business Forum in Abuja, the Authority Chief Executive of the NMDPRA, Rabiu Umar, represented by the Acting Executive Director, Distribution Systems, Storage and Retailing Infrastructure, Ayorinde Cardoso, said Nigeria’s challenge is no longer the availability of gas but ensuring access to it.
Addressing participants at the forum themed “From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperative,” Umar noted that despite possessing over 209 trillion cubic feet of proven natural gas reserves, the country’s focus must shift towards delivering gas efficiently to industries, power plants, businesses, Compressed Natural Gas (CNG) stations and households.
He disclosed that the Federal Government is targeting gas supply growth to 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030, emphasizing that achieving these objectives will require significant investment in last-mile gas distribution infrastructure alongside strategic projects such as the Ajaokuta-Kaduna-Kano Pipeline and the OB3 Pipeline.
According to him, the NMDPRA has continued to make progress under the Gas Distribution Licensing framework established under the Petroleum Industry Act 2021.
He revealed that the Authority issued ten Gas Distribution Licences in 2025, with the licensed areas currently serving approximately 430 customers through more than 535 kilometres of pipeline infrastructure and a combined network capacity of 442 million standard cubic feet per day.
Umar further disclosed that plans are underway for the next phase of Gas Distribution Licences, particularly along the AKK Pipeline Corridor, to support the development of new industrial clusters and expand domestic gas utilisation across Northern Nigeria.
While acknowledging the increasing role of virtual gas distribution through CNG and Liquefied Natural Gas (LNG) transportation, he maintained that the long-term goal remains the expansion of Piped Natural Gas infrastructure as the most efficient and scalable means of delivering gas nationwide.
The Authority Chief Executive reaffirmed NMDPRA’s commitment to creating an enabling regulatory environment that encourages investment, enhances supply reliability and supports growth across the gas value chain.
He urged stakeholders to move beyond celebrating Nigeria’s gas reserves and focus on ensuring effective utilisation, stressing that the success of the country’s gas agenda will ultimately be measured by the extent to which gas is delivered to productive sectors of the economy.
The forum brought together industry players, investors and policymakers to discuss strategies for expanding gas access and accelerating the development of Nigeria’s domestic gas market.
NMDPRA Calls for Expansion of Gas Distribution Infrastructure to Drive Economic Growth