The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is set to open bidding for gas distribution licences following a nationwide gridding exercise expected to be completed in October. This was announced by the authority's chief executive, Rabiu Abdullahi Umar, at the Gas Investment Forum 2026. The forum, themed “Positioning Nigeria as Africa’s Global Gas Powerhouse,” brought together stakeholders to discuss the country's gas sector. Umar outlined the authority's plans to transform the gas sector.
The gridding exercise is a crucial step towards creating a fully open-access regime in the gas sector. It will map out areas for licence allocation, similar to the process for oil mining licences in the upstream sector. Investors will bid for licences covering these areas, promoting a more structured and competitive market. This move is part of the federal government’s Decade of Gas Initiative, aimed at speeding up licences and approvals for gas infrastructure projects.
The NMDPRA's efforts focus on turning Nigeria's gas reserves into usable infrastructure that drives economic activity. Umar emphasized that gas reserves without infrastructure remain potential, while gas transported through pipelines supports productivity. The authority plans to open a digital licensing round before the end of 2026. This initiative aims to move the gas sector from a fragmented infrastructure and access system to a fully open-access regime.
The authority is rebuilding the Nigerian Gas Transportation Network Code to establish clear rules for gas transportation. This includes rules on shrinkage factors and ensuring that pipeline capacity is not limited to a few players. The law allows projects to link to existing pipelines, and the authority is responsible for enforcing this. A cooperation framework with the Federal Competition and Consumer Protection Commission (FCCPC) has been signed to tackle anti-competitive practices.
Umar addressed investor concerns over payment, supply reliability, and pricing. The authority is developing measurable conditions for a full transition to a willing-buyer, willing-seller domestic gas market. These conditions will assess supply diversity, infrastructure access, contract performance, and credible pricing. The authority aims to balance investment with affordability, cautioning that overemphasis on investment could make prices unaffordable for consumers.
The NMDPRA welcomed discussions on floating LNG at the forum. Umar noted that LNG in Nigeria is no longer limited to Nigeria LNG Limited, as it is now used domestically and other companies are developing LNG products. The authority's goal is to ensure that pipeline capacity is not limited to a few players and that the market operates efficiently.
The regulator's role is to act as a referee, ensuring a fair and competitive market. Umar stressed that the authority will not force owners to give up capacity that is already fully used. The NMDPRA's initiatives aim to create a robust and competitive gas market in Nigeria, supporting economic growth and development.
Key points
- The NMDPRA will open bidding for gas distribution licences after a nationwide gridding exercise in October.
- The authority aims to transform the gas sector into a fully open-access regime.
- The NMDPRA is developing conditions for a willing-buyer, willing-seller domestic gas market.
