Gas industrialisation central to FG’s economic recovery drive — NMDPRA

NMDPRA

The Federal Government has reaffirmed that gas industrialisation remains central to Nigeria’s economic recovery drive, as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) intensifies enforcement and accelerates gas distribution nationwide.

The Chief Executive of the NMDPRA, Engr. Saidu Mohammed, stated this on Friday in Port Harcourt, Rivers State, during an inspection tour of petroleum and gas facilities operated by key players in the midstream and downstream sectors.

Mohammed said the authority remains committed to strict regulatory compliance while actively engaging operators across the value chain to deepen gas penetration, stimulate industrial growth, and reduce production costs for businesses nationwide.

According to him, the inspection aligns with the Federal Government’s Decade of Gas initiative, which seeks to maximise Nigeria’s vast gas resources as a foundation for sustainable industrialisation and economic expansion.

He explained that expanding domestic gas utilisation requires robust and efficient distribution networks capable of delivering energy to industries and households, noting that access to gas is critical to lowering manufacturing costs and enhancing competitiveness.

“Distribution networks are critical to industrialisation because industries thrive when gas is available. Gas is cleaner, more efficient, and significantly reduces production costs, which ultimately lowers prices for consumers,” Mohammed said.

The NMDPRA chief added that the Federal Government’s overarching objective is to deploy activities across the oil and gas value chain to stimulate industrial growth, create jobs, and boost national productivity.

He assured that the regulator would continue to support gas distributors and other midstream operators to ensure orderly expansion within transparent technical and commercial frameworks, in line with the Petroleum Industry Act (PIA).

“Inspecting these facilities underscores 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 PIA,” he stated.

Mohammed disclosed that the authority is currently mapping the entire country for the allocation of Gas Distribution Licences, explaining that licensed operators would function within defined franchise areas to expand gas penetration nationwide.

He noted that in areas without transmission pipelines, the authority would deploy virtual gas distribution using Compressed Natural Gas (CNG) to ensure no region is excluded from the gas industrialisation agenda.

“These operators may appear small, but they are vital to government’s aspiration of delivering gas to every corner of the country, particularly industrial hubs,” he added.

Mohammed stressed that industrialisation remains key to national development and economic recovery, warning that scarcity inevitably leads to high prices and that increased gas supply is essential to achieving affordable energy costs for industries and consumers.

While clarifying that the authority does not provide gas appliances such as cylinders, he said the NMDPRA ensures facilities meet safety and quality standards from production through transportation to final consumption.

“Our goal is to deliver petroleum gas at the lowest possible cost — from production through transportation to distribution. We will deploy all regulatory powers granted under the PIA to support operators and ensure nationwide gas availability,” he said.

During the inspection, the NMDPRA delegation visited facilities operated by Stockgap Fuels Limited, Matrix Petrochemical Limited, and Central Horizon Gas Company Limited to assess operational standards and regulatory compliance.

Speaking during the visit, the Chairman of Stockgap Fuels Limited, Dr. Stanley Ohamarije, said the company plans to inject five million gas cylinders into the Nigerian market over the next five years.

Ohamarije said the investment would support the Federal Government’s ten-million-cylinder target and deepen gas penetration, noting that Stockgap’s plant has a production capacity of 2,500 cylinders per hour.

He said the initiative reflects the company’s commitment to improving access to gas for Nigerians while supporting national industrial growth.

Also speaking, the Managing Director of Central Horizon Gas Company Limited, Kehinde Alabi, said the firm is expanding gas infrastructure nationwide to support industrialisation under the Decade of Gas initiative.

Alabi said the NMDPRA inspection would further encourage the company to scale up gas supply to industries, describing natural gas as a critical driver of industrial growth globally.

“CHGC is establishing facilities across Nigeria to support economic development. We are expanding infrastructure to meet rising demand, and this progress has been made possible by regulatory support through timely licences and approvals,” he said.

Stakeholders said the visit signals renewed momentum in the Federal Government’s push to position gas as the backbone of Nigeria’s industrial revival and long-term economic recovery.

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