The Federal Government has issued 25-year gas distribution licenses to 10 companies, marking a major step in expanding Nigeria’s gas infrastructure.
The licenses, awarded by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), cover franchise areas in Lagos, Ibadan, Port Harcourt, and Benin.
The issuance ceremony, held in Abuja, was overseen by the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo.
He explained that the initiative aligns with the government’s efforts to improve gas accessibility and support the country’s energy transition.
According to Hon. Ekpo, the licences grant the companies the rights to construct and operate gas distribution systems in designated zones, ensuring efficient gas supply to industries and households.
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The beneficiaries include major players such as NNPC, Shell, Axxela, NIPCO, Falcon, and Central Horizon Gas Company.
NMDPRA’s Chief Executive, Engr. Farouk Ahmed, stated that the licences will enable the distribution of over 1.5 billion cubic feet of gas daily through a 1,200km pipeline network and 500 customer stations.
He added that this development would create investment opportunities, boost domestic gas markets, and enhance economic growth.
In a bid to support this expansion, NNPC Limited and its partners announced plans to invest $500 million in five Liquefied Natural Gas (LNG) plants in Ajaokuta, Kogi State.
Ogunleye Olalekan, Executive Vice President of Gas and Power for NNPC, promised license holders a steady supply of gas throughout the franchise territories.
The Federal Government called on stakeholders and investors to collaborate in advancing Nigeria’s gas infrastructure, with a focus on job creation, investment attraction, and a sustainable energy future.
