Business

FG Issues 25-year Licence To 10 Gas Distribution Coys

Published

9 months ago

January 30, 2025

The Federal Government has issued a 25-year gas distribution licence to 10 companies for the establishment, construction and operation of gas distribution networks.

The licenses, issued through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), is aimed at promoting domestic gas utilisation, cover franchise areas in Lagos, Ibadan, Port Harcourt, and Benin City.

NMDPRA further said it is to ensure that natural gas reaches the last mile in homes and industries across clusters in the southwestern and southern regions of the country.

At the award ceremony on Tuesday in Abuja, the Authority Chief Executive of the NMDPRA, Ahmed Farouk, announced that the Nigerian National Petroleum Company Limited (NNPCL), Shell, Nipco, Central Horizon Gas Company, Falcon, and Axxela were granted the licences.

He added that the areas awarded were those already connected to the Escravos-Lagos Pipeline System.

Out of 30 applications received, 20 were screened out, leaving the top 10 recipients to spearhead the first phase of such an initiative aimed at the country’s gas expansion initiative.

Among the clusters, the Agrara, Ota, and Badagry Local Gas Distribution Zone will be operated jointly by NNPC and Shell, with a capacity of 102 million standard cubic feet per day.

The Greater Lagos Industrial Area (GLIAS Local Gas Distribution Zone), with a capacity of 130 MMSCF/D, will be operated by NNPC and Gaslink, while the Ikorodu Local Gas Distribution Zone, operated by NNPC and Falcon, has a capacity of 25 MMSCF/D.

Similarly, the Kara Bridge-Ibafo-Sagamu Interchange Local Gas Distribution Zone, with a capacity of 150 MMSCF/D, will be managed by NNPC and Nipco.

The Lekki Free Trade Zone Local Gas Distribution Zone will be operated by NNPC and Nipco, with a capacity of 25 MMSCF/D.

Additionally, the Ogere-Ibadan-Oluyole-Olorisako-Asuire-Ajoda Local Gas Distribution Zone, managed by NNPC and Nipco, has a capacity of 150 MMSCF/D.

In the South-South region, the Port Harcourt Cluster 2 Local Gas Distribution Zone, operated by CHGC, has a capacity of 50 MMSCF/D.

The Port Harcourt Cluster 1 Local Gas Distribution Zone, managed by Shell, will operate with a capacity of 30 MMSCF/D.

The Ada Local Gas Distribution Zone, with a capacity of 30 MMSCF/D, will be managed by NNPC.

Finally, the Benin Local Gas Distribution Zone will be operated by Nipco, with a capacity of 20 MMSCF/D.

In his keynote address, Farouk disclosed that the licenses would enable the distribution of over 1.5 billion cubic feet of gas per day through a 1,200 km gas pipeline network and more than 500 customer stations.

He said, “Ten licenses are being issued today as part of Phase 1 of the Gas Distribution Licensing regime to operators who have invested significantly in developing gas distribution infrastructures in the designated Gas Distribution Zones and have met the prescribed minimum requirements.

“A cumulative gas distribution capacity of approximately 1.5 bscf/d with over 1,200 km of gas distribution pipeline network as well as over 500 customer stations are covered by the licenses being issued today.

“This license regime holds a significant opportunity to support the development of our domestic gas market through the supply of gas to our energy and testing industries, industrial parks, special economic zones, embedded captive power generation, mobility CNG schemes, and any other downstream gas utilisation programme.

“We appreciate that this license regime shall not only support the accelerated development of our domestic gas market, but that it shall create opportunities for profitable investment for various classes of stakeholders, improve the socio-economic impact of gas resources across Nigeria, and support our national energy processing sectors”.

Farouk explained that the gas distribution license regime “is expected to lay a solid foundation for long-term growth and prosperity, unlock the full potential of our natural gas reserves, enable the development of new and tech markets, and create new sources of revenue and employment for our nation.

“These licenses are expected to be a catalyst for investments. Pipeline natural gas provides continuous supply, is cost-effective, is safer, and eliminates storage challenges”.

He stated that NMDPRA will continue to “encourage public-private partnership to speed up the development of gas infrastructure, with the government playing a vital role in providing support through regulatory oversight, a mid- and downstream gas infrastructure fund that is embedded under the authority, while the private sector or private companies will bring in expertise and investments needed to drive the projects forward”.

The license regime, according to him, shall not only support the accelerated development of Nigeria’s domestic gas market but also create opportunities for profitable investments for various classes of stakeholders, improve the socio-economic impact of gas resources across Nigeria, and support our national energy transition plans.

He also assured the authority’s commitment to continue working assiduously in providing regulatory support to industry stakeholders and ensuring that critical gas infrastructures are completed and commissioned.

The NMDPRA boss said they include the OB3 river crossing, the AKK, and the gas processing facilities across the gas-producing provinces of the country.

He further stated that the authority has commenced the review process on the second revision of the Gas Transportation Network Code to build on the successes of the first revision and enhance the performance of the network regarding pressure stability, metering at both entry and exit points, quality of supply, and overall operational efficiency.

He also said the NMDPRA will periodically revise the gas pricing and tariffing frameworks to ensure that the cost of gas remains fair and competitive, in line with the provisions of the PIA.

Also speaking, the Minister of State Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, said the license regime, which is part of the federal government’s “last mile” gas expansion programme, is expected to bring gas supply closer to Nigerians across the country.

Ekpo noted that the licenses provide “an exclusive right to establish, construct, and operate gas distribution systems and ensure the non-discriminatory distribution and sale of natural gas within designated local distribution zones.

“Today’s event is a testament to our commitment to implementing the PIA in full alignment with the Gas Distribution Regulations of 2023.

He further noted that the “issuance of the Gas Distribution License comes at a pivotal moment as we intensify efforts to harness the potential of gas as a critical resource for Nigeria’s energy transition and economic transformation”.

The Minister informed that the continued exposure to carbon monoxide and lack of access to clean cooking has led to the death of 600,000 women and children in Africa.

He said even more worrisome is the fact that an estimated 1.2 billion women in the continent lack access to clean cooking.

“By empowering license holders, this initiative opens extensive opportunities across several key sectors: Energy-Intensive Industries: Facilitating affordable and reliable energy supply to drive industrial growth and competitiveness.

“Power Generation: Supporting the generation of cleaner and more efficient energy to enhance power availability across the nation”, he stated.

Meanwhile, the Group Chief Executive Officer of NNPC Limited, Mele Kyari, has stated that the company and its partners are investing $500 million to construct the yet-to-be-commissioned five liquefied natural gas plants in Ajaokuta, Kogi State, as part of its efforts to boost gas distribution.

Kyari, who was represented at the event by Executive Vice President, Gas and Power, Ogunleye Olalekan, assured the license holders of an adequate supply of gas across the franchise zones.

He urged stakeholders, investors, and companies operating in the sector to support the federal government’s plans to improve gas supply and utilisation, adding that the gas sector “is a huge opportunity space”.

Business

FEC Approves Concession Of Port Harcourt lnt’l Airport

Published

7 hours ago

November 10, 2025

The Tide

The Federal Executive Council (FEC) on Thursday approved the concession of the Port Harcourt International Airport to private investors for more efficient management and improved service delivery.

Minister of Aviation and Aerospace Management, Festus Keyamo, disclosed this while briefing journalists at the State House, Abuja, shortly after the meeting, presided over by President Bola Ahmed Tinubu, Thursday.

Keyamo, however, assured aviation workers that the concession would not result in job losses, stressing that the government remains committed to protecting workers’ rights while pursuing reforms to make the aviation sector more viable.

“We have two major airports now that we have approvals in terms of the business case to begin to finalise with private investors. One of them is the Port Harcourt International Airport. Let me assure the unions that nobody will lose his job as a result of these concessions. I am pro-union, pro-workers, and I will engage them to ensure they are comfortable with the process, Keyamo said.

The Minister noted that the move was part of government’s effort to ensure that airports operate sustainably.

He explained that many airports currently run at a loss, with revenue from Lagos, Abuja, and Kano used to subsidise others.

“Before we came in, Port Harcourt was a no-go area — no investor was interested. But today, because of the activities of this government, it has become the beautiful bride. Over six investors competed to manage the airport,” he said.

Keyamo also listed other aviation-related approvals secured from FEC, including contracts for the maintenance and support services for airport management solutions across Nigeria’s five international airports; Abuja, Lagos, Kano, Port Harcourt, and Enugu, as well as the procurement and installation of advanced tertiary power systems and navigational aids.

Additionally, the Council approved the purchase of 15 airport rescue and firefighting vehicles to meet International Civil Aviation Organisation (ICAO) standards and the construction of a permanent headquarters for the Nigerian Airspace Management Agency (NAMA) in Abuja.

Another significant approval was the exclusion of all Federal Airports Authority of Nigeria (FAAN) residential properties within and around airports from sale to private individuals, a move aimed at preserving operational safety and security within airport environments.

FEC also approved the concession of biometric verification systems at airports to integrate passengers’ National Identification Numbers (NIN) into boarding processes, enhance aviation security, and curb the use of fake identities.

Keyamo said the ministry also secured approvals for contracts under its 2024 budget to improve lighting systems at airports, enabling night operations and helping local airlines increase passenger capacity and revenue.

“These reforms are designed to make our airports safer, more efficient, and commercially sustainable. We are bringing them to global standards,” the minister affirmed.

Business

Senate Orders NAFDAC To Ban Sachet Alcohol Production by December 2025 ………Lawmakers Warn of Health Crisis, Youth Addiction And Social Disorder From Cheap Liquor

Published

7 hours ago

November 10, 2025

The Tide

The Senate has issued a decisive order to the National Agency for Food and Drug Administration and Control (NAFDAC), directing it to enforce a total ban on the production and sale of alcoholic beverages in sachets and small plastic bottles by December 2025, warning that no further extension of the deadline will be tolerated.

The upper chamber’s resolution followed an exhaustive debate on a motion sponsored by Senator Asuquo Ekpenyong (Cross River South), during its sitting, last Thursday.

Ekpenyong who raised the alarm over NAFDAC’s repeated extensions of the phase-out date, despite the grave health and social risks posed by sachet-packaged alcohol reminded the Senate that NAFDAC had initially fixed 2023 as the deadline before shifting it to 2024, and later to 2025, a pattern he said had emboldened manufacturers to lobby for further delays.

He warned that another extension would amount to a betrayal of public trust and a violation of Nigeria’s commitment to global health standards.

Ekpenyong said, “The harmful practice of putting alcohol in sachets makes it as easy to consume as sweets, even for children.

“It promotes addiction, impairs cognitive and psychomotor development and contributes to domestic violence, road accidents and other social vices.”

“Some responsible manufacturers have already complied in good faith. But they are now suffering unfair competition from those who continue to produce and sell non-compliant products. This is both unethical and dangerous.”

The motion drew wide bipartisan support, with lawmakers condemning the proliferation of cheap, high-alcohol-content drinks sold in small sachets, describing them as “silent poisons” targeted at vulnerable Nigerians.

Senator Anthony Ani (Ebonyi South) said sachet-packaged alcohol had become a menace in communities and schools.

“These drinks are cheap, potent and easily accessible to minors. Every day we delay this ban, we endanger our children and destroy more futures,” he said.

Senate President, Godswill Akpabio, who presided over the session, ruled in favour of the motion after what he described as a “sober and urgent debate”.

Akpabio said “Any motion that concerns saving lives is urgent. If we don’t stop this extension, more Nigerians, especially the youth, will continue to be harmed. The Senate of the Federal Republic of Nigeria has spoken: by December 2025, sachet alcohol must become history.”

closing remarks, Akpabio commended senators for taking what he described as a “historic and moral stand” to protect Nigerians from a “slow-killing culture”.

According to him, “This is not just about alcohol regulation. It is about safeguarding the mental and physical health of our people, protecting our children, and preserving the future of this nation.

“We cannot allow sachet alcohol to keep destroying lives under the guise of business.”

closing remarks, Akpabio commended senators for taking what he described as a “historic and moral stand” to protect Nigerians from a “slow-killing culture”.

“We cannot allow sachet alcohol to keep destroying lives under the guise of business.”

“The Senate has spoken clearly. The time for excuses is over. Let this harmful practice end, for the health, safety and sanity of our nation

With this resolution, the Senate has effectively placed NAFDAC and allied agencies under legislative mandate to ensure that by December 2025, sachet and small-volume alcoholic drinks are completely phased out across Nigeria, with no further extensions permitted.

Business

PHCCIMA Leadership Hails Rivers Commerce Commissioner for Boosting Business Ties …..Urges Deeper Collaboration to Ignite Economic Growth

Published

7 hours ago

November 10, 2025

The Tide

In a show of solidarity for Rivers State’s economic revival, President of the Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHCCIMA), Dr. Chinyere Nwogu, has joined past presidents and executive council members in commending Commissioner for Commerce and Industry, Warisenibo Joe Johnson, for his proactive engagement with the private sector.

The commendations came during a courtesy visit by Johnson to PHCCIMA’s corporate headquarters in Port Harcourt, where he underscored the critical need for public-private partnerships to transform the state into a vibrant commerce hub.

“The Chamber plays a pivotal role in driving business growth here in Rivers State,” Mr. Johnson remarked, extending thanks for the warm welcome, indicating that this was his first outing as Commissioner for Commerce.

He called for intensified collaboration on trade missions, investment drives, and business facilitation, while outlining government initiatives to attract investors and expand industrial opportunities.

Johnson expressed optimism about future engagements, pledging to return for deeper discussions with Dr. Nwoga and her team.

He further highlighted ongoing efforts to lure investors, emphasizing that retaining them requires a supportive ecosystem built through joint action.

Responding, Dr. Nwoga assured the commissioner of PHCCIMA’s unwavering support saying “We stand ready to partner fully in trade promotion, easing the business environment, and empowering small and medium enterprises (SMEs)”.

She reaffirmed the Chamber’s commitment to aligning with the Ministry’s vision.

While noting that this is the 1st time that a Commissioner of Commerce has visited the Chamber for interactions, Chinyere thanked the Rivers State Governor, H E Siminalayi Fubara for his commitment to growing commerce through collaboration with PHCCIMA.

The meeting drew broad support from PHCCIMA’s leadership. Past President Dr. Engr. Vincent Furo lauded the visit as a positive step, pledging the Chamber’s backing for government-led commerce initiatives. Chief Nabil Saleh, another past president, stressed the importance of investor confidence, urging assurances that new investments would be nurtured and sustained in the state.

Dr. Emeka Unachukwu, who is also a past president, echoed the call for an enabling environment to draw and retain capital.

Exco members present at the visit included – 1st Deputy President, Chf Isaac Wonwu, Financial Secretary, Chf Emmanuel Ogbonda, Welfare Secretary, Amb. Florence Igbeaku Nwosibe, who lent their voices to the call for collaboration with PHCCIMA.

Also present were elected Council Member, Engr. Dr. Virgilus Ezugu, SME/NGO Trade Group Chairman, Jack Daboikiabo, Ms. Tariboba Memberr, Chairperson of PHCCIMA’s Inter-Governmental Relations Committee, Ms Patricia Ihunze, Deputy Coordinator of the Women Chambers (WCCIMA), and Mr. Victor, Chairman of PHCCIMA member company Einfotech, each of whom expressed the desire of the Chamber to be recognized as a hub for commerce.

In closing, Dr. Nwoga reiterated PHCCIMA’s dedication to advancing commerce and industry for the state’s prosperity, and the readinessof the PHCCIMA to be dependable ally in growing the economy of Rivers State.