morganaBLE politics/Governance
The Chief Executive Officer of the NMDPRA,Rabiu Umar, stressed that Nigeria’s significant gas reserves would remain largely untapped without corresponding investments in infrastructure, warning that the country must move from potential to productivity
KaNo—
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has unveiled plans to launch a digital licensing round for gas distribution areas nationwide before the end of 2026.
The move aimed to deepen investment, expand infrastructure, and unlock the country’s vast gas potential.
The Chief Executive of the NMDPRA, Rabiu Umar, disclosed this at the Gas Investment Forum 2026, themed ‘Positioning Nigeria as Africa’s Global Gas Powerhouse,’ where he outlined a series of regulatory and market reforms designed to transform the domestic gas sector.
Umar said the proposed licensing round would commence after the completion of a nationwide gas distribution gridding exercise expected in October.
The mapping process, he explained, would divide the country into defined gas distribution zones, enabling investors to bid competitively for licences covering specific areas.
“Under the licensing round, applicants will bid for gas distribution licences in the gridded areas available across the country, in the same way licensees apply for oil mining licences in the upstream sector,” he said.
According to him, the initiative represents a shift from the current fragmented gas infrastructure system to a more coordinated and open-access framework capable of supporting industrial growth and energy security.
He stressed that Nigeria’s significant gas reserves would remain largely untapped without corresponding investments in infrastructure, warning that the country must move from potential to productivity.
“Without infrastructure, reserves are potential. They will continue to have potential. With infrastructure, gas becomes productivity and national resilience, especially in the light of the global headwinds that we see,” Umar stated.
He explained that a functional gas ecosystem must enable seamless transportation of gas from wellheads to processing facilities, pipelines, power plants, industrial hubs, transport systems, households and export terminals.
Umar described the Federal Government’s Decade of Gas Initiative as a key driver of the sector’s transformation, noting that the NMDPRA is accelerating approvals for critical infrastructure projects including gas processing plants, pipelines, storage systems, compressed natural gas and liquefied natural gas facilities.
He also pointed to emerging opportunities in floating LNG projects, saying Nigeria must embrace innovative solutions as global gas markets evolve.
“A few years ago, when we say LNG, everybody in Nigeria thought LNG meant NLNG, because that was the only company doing LNG. Today, the case is different,” he said.
He also added that LNG is increasingly being deployed for domestic use while multiple companies are developing new gas products.
On market reforms, Umar reiterated the regulator’s commitment to establishing an open-access regime in which gas infrastructure is accessible to multiple players rather than being controlled by a limited number of operators.
He disclosed that the authority is currently reviewing and rebuilding the Nigerian Gas Transportation Network Code to ensure clear, transparent and consistently applied rules for gas injection, transportation and offtake.
The revised code, he said, would address key operational issues such as measurement standards and shrinkage factors, while ensuring that smaller projects are not excluded from the system.
“The law provides that a company with a project, even one requiring a connection of only 20 kilometres, should be able to connect to an existing pipeline, with the NMDPRA responsible for ensuring such access,” Umar said.
In a bid to strengthen market discipline and investor confidence, the regulator is also working closely with the Federal Competition and Consumer Protection Commission to curb anti-competitive practices in the sector.
Umar said the collaboration would address issues such as price fixing, market allocation, abuse of dominance, capacity hoarding and discriminatory access to infrastructure, while safeguarding legitimate investments.
He, however, clarified that infrastructure owners would not be compelled to release capacity that is already fully utilised.
Addressing investor concerns, Umar emphasised the importance of trust, transparency and enforceable rules in building a sustainable gas market.
“Markets run on trust, and trust runs on discipline,” he said, identifying credible contracts, transparent tariffs, accurate metering and effective enforcement as essential pillars for attracting investment.
He noted that investors remain particularly concerned about payment security, supply reliability and pricing stability, adding that the authority is developing measurable indicators to guide Nigeria’s transition to a willing-buyer, willing-seller gas market.
According to him, the transition would be assessed based on factors such as diversity of supply sources, access to infrastructure, contract performance, payment discipline, availability of reliable market data and the credibility of pricing mechanisms.
Umar cautioned that regulators must strike a careful balance between encouraging investment and ensuring affordability for consumers.
“If you focus excessively on investment alone, you may create a pricing environment that is unaffordable. If you focus excessively on low pricing, you may discourage investment. Regulators are nothing but referees,” he said.
Meanwhile, the NMDPRA has also proposed a comprehensive set of 138 new regulations aimed at curbing unfair competition and strengthening market integrity across the midstream and downstream petroleum sectors.
The proposed Midstream and Downstream Petroleum Prevention of Anticompetitive Practices and Behaviour Regulations, 2026, consist of 23 parts and are designed to provide a detailed legal framework for competition and market conduct.
The regulations, if finalised, would prohibit practices such as price-fixing, collusion, bid rigging, market sharing and coordinated supply restrictions.
They would also address abuse of dominant market positions and ensure fair and non-discriminatory access to critical infrastructure.
Umar said the rules would introduce greater transparency in tariffs, fees, capacity allocation and other commercial arrangements, thereby improving market efficiency and investor confidence.
Speaking at a stakeholders’ consultation in Abuja, he said the authority had already received submissions from industry players and would continue to engage stakeholders to refine the regulations.
“We particularly welcome your views on the clarity, practicality and likely impact of the proposed regulations. We encourage participants to identify specific provisions that may require clarification or refinement and suggest practical alternatives,” he said.
He added that effective regulation must balance multiple objectives, including promoting competition, supporting innovation, ensuring efficiency and protecting the overall integrity of the petroleum sector.
Umar reiterated that the recently signed Memorandum of Understanding with the FCCPC would enhance regulatory coordination and ensure consistent enforcement of competition rules.
“A few weeks ago we signed an MoU with the FCCPC, which by law is also empowered to ensure that there are fair market practices in the country and in the sector. Our mandates are not necessarily conflicting,” he said.
Industry analysts say the combined reforms, ranging from licensing and infrastructure expansion to competition regulation, signal a more structured, investor-friendly approach to developing Nigeria’s gas sector.
They note that if effectively implemented, the initiatives could unlock significant investment, boost domestic gas utilisation and position Nigeria as a major player in the global energy transition.
However, they caution that success will depend on consistent policy implementation, regulatory transparency and the government’s ability to address longstanding challenges such as funding constraints, pipeline security and payment discipline.
For now, the NMDPRA’s plans mark a significant step toward transforming Nigeria’s gas landscape from a largely underutilised resource base into a fully integrated engine of economic growth.
