The Federal Government has granted ten businesses 25-year gas distribution licences, allowing them to build, manage, and maintain gas distribution networks in Lagos, Ibadan, Port Harcourt, and Benin.
The licensing holders include NNPC, Shell, Central Horizon Gas Company, Falcon, Axxela, and NIPCO.
At the licence award ceremony in Abuja, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the initiative as part of the federal government’s “last mile” gas expansion programme aimed at increasing access to natural gas.
“These licences grant an exclusive right to establish, construct, and operate gas distribution systems, ensuring non-discriminatory distribution and sale of natural gas within designated zones.
“This endeavour demonstrates our dedication to implementing the Petroleum Industry Act in its entirety and is consistent with the Gas Distribution Regulations of 2023,” Ekpo said.
Ekpo added that the licenses are a significant step towards using gas as a vital resource for Nigeria’s economic development and energy transition.
The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, explained that the licences would enable the distribution of over 1.5 billion cubic feet of gas daily via a 1,200km pipeline network and over 500 customer stations.
“This licensing regime supports domestic gas market development through energy and testing industries, industrial parks, embedded power generation, and compressed natural gas (CNG) schemes.
“It creates profitable opportunities for stakeholders, improves socio-economic impact, and unlocks Nigeria’s natural gas potential,” Ahmed said.
He added that the licences would attract investment, support job creation, and enable the development of technology-driven markets while providing cost-effective and continuous gas supply.
He reaffirmed the NMDPRA’s commitment to fostering public-private partnerships to accelerate gas infrastructure development, with the government offering regulatory support and private sector partners bringing expertise and funding.
The Group CEO of NNPC Limited, Mele Kyari, represented by Executive Vice President Gas and Power, Ogunleye Olalekan, announced plans to invest $500 million in building five Liquefied Natural Gas (LNG) plants in Ajaokuta, Kogi State.
Kyari assured licence holders of adequate gas supply to their franchise zones and encouraged stakeholders to support the government’s efforts to expand gas utilisation.
“The gas sector is a huge opportunity space,” Kyari stated, urging investors to leverage the government’s commitment to improving gas supply and utilisation for national economic growth.
The initiative is expected to drive Nigeria’s energy transition and bolster its gas economy, unlocking revenue streams and creating job opportunities across the country.