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In a major push to overhaul the nation’s energy infrastructure, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced plans to open a transparent, digital licensing round for gas distribution areas across the country before the close of 2026.

The initiative was disclosed by the NMDPRA Chief Executive, Rabiu Umar, during his opening address at the recently concluded Gas Investment Forum 2026, held under the theme “Positioning Nigeria as Africa’s Global Gas Powerhouse.”

According to the regulator, the upcoming licensing round will directly follow the completion of a nationwide gas distribution gridding exercise slated for October, allowing investors to competitively bid for mapped distribution zones in a manner similar to upstream oil mining licenses.

Umar emphasized that the licensing drive is a crucial step in transitioning Nigeria’s natural gas sector away from fragmented networks toward a unified, open-access regime. He noted that vast hydrocarbon reserves mean little without the physical infrastructure required to unlock them.

“Without infrastructure, reserves are potential. They will continue to have potential. With infrastructure, gas becomes productivity and national resilience, especially in the light of the global headwinds that we see,” Umar stated.

READ ALSO: Oil Prices Fall As G7 Plans 100m-Barrel Reserve Release

The regulator stressed that infrastructural expansion must seamlessly connect gas from wellheads to processing facilities, arterial pipelines, power generation plants, industrial clusters, transport corridors, households, and export terminals.

Describing the federal government’s Decade of Gas Initiative as a vital engine of execution, Umar affirmed that the agency is fast-tracking permits for processing plants, storage depots, and downstream CNG and LNG projects.

Highlighting the shifting energy landscape, Umar pointed out that liquefied natural gas is no longer the exclusive domain of Nigeria LNG Limited. With multiple private players developing diverse LNG and CNG products for domestic consumption, the market has matured significantly.

To support this expansion, the NMDPRA is overhauling the Nigerian Gas Transportation Network Code to enforce transparent rules for pipeline injection, offtake, and shrinkage management. Under the statutory open-access framework, even smaller developers requiring short-distance connections will be legally guaranteed access to existing infrastructure.

Furthermore, to protect market integrity, the regulator has formalized a cooperation framework with the Federal Competition and Consumer Protection Commission (FCCPC). This partnership aims to root out anti-competitive practices such as price-fixing, market-sharing, capacity hoarding, and discriminatory access, while balancing investor returns with consumer affordability.

As the sector transitions fully toward a willing-buyer, willing-seller domestic market, Umar underscored that investor confidence relies heavily on regulatory discipline, enforceable contracts, and transparent tariff structures.

The Traffic NG
NMDPRA
Hibbatullah Shittu
The Traffic NG

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