FG Maps Nigeria For Gas Expansion, Pushes For More Refineries 

The Federal Government has reaffirmed plans to comprehensively map Nigeria for expanded gas distribution networks while intensifying calls for increased refinery capacity to position the country as a major exporter of petroleum products.

The Authority Chief Executive (ACE) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Saidu Aliyu Mohammed, disclosed this during the second and third days of his three-day official tour of oil and gas facilities in Rivers State, where he engaged operators across the midstream and downstream segments of the industry.

During Day Two of the tour, Mohammed said the Federal Government, through NMDPRA, is mapping the entire country to allocate Gas Distribution Licences (GDLs) and other distribution network franchises to drive gas penetration nationwide.

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The exercise aims to ensure a systematic and orderly expansion of gas infrastructure with clearly defined technical and commercial franchises that meet industry and stakeholder expectations.

He explained that in areas without transmission pipelines, the government would deploy virtual gas distribution, particularly compressed natural gas (CNG), describing such operators as critical to the administration’s gas expansion strategy.

The NMDPRA chief emphasized that the authority’s visits to facilities were part of routine stakeholder engagement rather than compliance enforcement.

“We are not here to confirm whether operators are compliant or not. In fact, we wouldn’t be here if they were not compliant. Our presence already gives them time for compliance,” he said.

Mohammed highlighted the importance of gas distribution networks in providing cleaner energy to industries, reducing production costs, and easing pressure on consumer prices.

Addressing concerns over rising gas prices, he explained that pricing falls outside the authority’s regulatory scope, stressing that scarcity remains the main driver of high costs.

“Our role is to ensure facilities meet standards and regulatory requirements. Scarcity creates higher prices, but making gas abundant is our job,” he said.

As part of Day Two engagements, Mohammed visited Stockgap Fuels Limited, where CEO Obiamarije Stanley commended NMDPRA for its sustained regulatory support and pledged continued compliance.

At Axxela Gas Limited, Managing Director Gas Distribution Alabi Kehinde expressed appreciation for the authority’s engagement. The NMDPRA team also toured facilities operated by Matrix, a Nigerian oil and gas company.

On Day Three, focus shifted to refining capacity during a tour of Aradel Holdings’ 11,000bpd refinery in Ogbele, where Mohammed stated that Nigeria requires more refineries to meet long-term domestic needs and support export ambitions.

“We need more and more refineries. The Dangote refinery alone is not enough. Our goal is not just to serve the Nigerian market, which we are already satisfying, but also Africa and beyond. We want to export PMS to Africa, Europe, and even America after meeting local demand,” he said.

He commended Aradel Holdings for demonstrating indigenous capacity in refining and energy development, describing the facility as a model of Nigerian content and private-sector participation.

Mohammed also stressed the need to revive government-owned refineries, noting that the operational status of the Port Harcourt, Warri, and Kaduna refineries remains the responsibility of the Nigerian National Petroleum Company Limited (NNPC Ltd).

“What we are advocating for is a system that allows petroleum products to be transported to the Port Harcourt and Warri depots so that loading can resume,” he said.

Mohammed emphasized that both government-owned and privately built refineries have critical roles to play and that sustained investment in the midstream sector is essential for Nigeria’s energy security.

Responding, Adegbite Falade, CEO of Aradel Holdings, thanked NMDPRA leadership for the visit, describing it as significant encouragement for operators.

He noted that strong regulatory support had enabled the company to scale operations and contribute to national energy supply, pledging to continue expanding refining and gas supply operations in support of economic growth and sustainable energy development.

The engagements on Days Two and Three of the NMDPRA ACE’s Rivers tour underscore the Federal Government’s push to deepen gas utilisation, expand refining capacity, and strengthen regulatory collaboration with industry stakeholders.

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