The Federal Government has announced plans to comprehensively map Nigeria to expand gas distribution networks while pushing for increased refinery capacity to strengthen the country’s position as a major exporter of petroleum products.
The Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Saidu Aliyu Mohammed, made this known during the second and third days of his three-day inspection tour of oil and gas facilities in Rivers State, where he interacted with operators across the midstream and downstream sectors.
Mohammed said the mapping exercise would enable the allocation of Gas Distribution Licences (GDLs) and other network franchises nationwide, ensuring an orderly and structured expansion of gas infrastructure with clearly defined technical and commercial boundaries.
He explained that in areas lacking gas transmission pipelines, the government would rely on virtual gas distribution systems, particularly compressed natural gas (CNG), describing such operators as vital to the administration’s gas expansion agenda.
According to him, the NMDPRA’s facility visits were part of routine stakeholder engagement rather than compliance enforcement.
“We are not here to check compliance. If operators were not compliant, we wouldn’t be here. Our visit already gives room for compliance,” Mohammed said.
He stressed that expanded gas distribution would provide cleaner energy for industries, lower production costs, and help reduce pressure on consumer prices. Addressing concerns over rising gas prices, he noted that pricing is outside the authority’s regulatory mandate, adding that scarcity remains the key driver of high costs.
“Our responsibility is to ensure standards are met. Scarcity drives prices, and our task is to make gas more available,” he said.
During Day Two of the tour, Mohammed visited Stockgap Fuels Limited, where CEO Obiamarije Stanley praised NMDPRA for its regulatory support and reaffirmed the company’s commitment to compliance. At Axxela Gas Limited, Managing Director of Gas Distribution, Alabi Kehinde, also commended the authority’s engagement. The team further toured facilities operated by Matrix, a Nigerian oil and gas firm.
On Day Three, attention shifted to refining capacity during a visit to Aradel Holdings’ 11,000 barrels-per-day refinery in Ogbele. Mohammed said Nigeria needs additional refineries to meet long-term domestic demand and support export ambitions.
“The Dangote refinery alone is not sufficient. Our objective is not only to serve Nigeria but also Africa and other markets. After meeting local demand, we aim to export PMS to Africa, Europe, and even America,” he said.
He praised Aradel Holdings for showcasing indigenous capacity and private-sector participation in refining and energy development, describing the refinery as a strong example of Nigerian content.
Mohammed also called for the revival of government-owned refineries, noting that the Port Harcourt, Warri, and Kaduna refineries remain under the responsibility of the Nigerian National Petroleum Company Limited (NNPC Ltd).
“What we advocate is a system that allows petroleum products to move to the Port Harcourt and Warri depots so loading can resume,” he added.
He emphasized that both public and private refineries are critical to Nigeria’s energy security and that sustained investment in the midstream sector is essential.
In his response, Aradel Holdings CEO, Adegbite Falade, thanked the NMDPRA leadership for the visit, describing it as a major boost for operators. He said strong regulatory support has helped the company expand operations and pledged continued investment in refining and gas supply to support economic growth and sustainable energy development.
