Gas distributors bemoan underutilised reserves, seek reform

Nigeia's Gas Industry

• FG orders crackdown on LPG hoarding, diversion

The Association of Local Distributors of Gas (ALDG) has called for urgent, coordinated action to expand gas access across Nigeria, warning that the country’s vast reserves risk remaining underutilised without decisive investment in infrastructure and distribution.
 
The appeal came at the second edition of the ALDG Business Forum in Abuja, themed “From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives.”
 
The forum brought together policymakers, regulators, development finance institutions, investors, and industry operators to examine pathways for converting Nigeria’s estimated 215 trillion cubic feet (TCF) of proven gas reserves into tangible domestic energy access.
 
Despite the scale of reserves, stakeholders noted persistent constraints, including weak distribution infrastructure, limited domestic utilisation, and widening energy access gaps.

Participants stressed that bridging the divide between abundance and accessibility would require sustained investment, enabling policies, and deeper coordination across the value chain.
 
Deliberations at the forum emphasised the need for long-term policy stability and regulatory certainty to unlock private capital inflows. Attention also focused on accelerating investment in pipeline networks, storage facilities, and downstream distribution systems that can deliver gas to households, industries, and businesses nationwide.
 
Stakeholders further called for stronger participation from development finance institutions (DFIs), particularly through long-term, naira-denominated financing to de-risk infrastructure projects and crowd in private investment. They also advocated strategic partnerships, including gas aggregation hubs and scalable distribution models to improve efficiency and expand market reach.
 
Chairman of the ALDG, Kehinde Alabi, said Nigeria could no longer afford to underutilise its gas wealth.

Meanwhile, the Federal Government, on Monday, directed regulatory and security agencies to clamp down on the diversion, hoarding, and illegal storage of Liquefied Petroleum Gas (LPG) as part of measures to stabilise prices and ensure adequate supply across the country.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, gave the directive in Abuja during an emergency stakeholders engagement convened to develop coordinated solutions to the recent increase in cooking gas prices.

Describing the rising cost of LPG as a matter of national concern with significant implications for households, small businesses, and economic stability, Ekpo said the Federal Government remains committed to easing the burden on Nigerians.

He directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to strengthen market oversight, develop a robust pricing framework to guide the market, and sanction operators engaged in market-distorting practices.

Ekpo also urged the NMDPRA to collaborate with the Department of State Services (DSS), the Economic and Financial Crimes Commission (EFCC), and the Nigeria Police Force to support enforcement efforts, eliminate artificial scarcity, and ensure the uninterrupted movement of LPG nationwide.
 
On supply, Ekpo said marketers had indicated readiness to increase imports, while anticipated deliveries from new domestic facilities, including the Seplat gas facility, were expected to boost supply in the coming weeks.

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