Connect with us

Business

FG Issues 25-year Licence To 10 Gas Distribution Coys

Published

8 months ago

on

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”.
Related Topics:
Continue Reading

Business

Kenyan Runners Dominate Berlin Marathons

Published

4 days ago

on

September 22, 2025

By

Kenya made it a clean sweep at the Berlin Marathon with Sabastian Sawe winning the men’s race and Rosemary Wanjiru triumphing in the women’s.

Sawe finished in two hours, two minutes and 16 seconds to make it three wins in his first three marathons.

The 30-year-old, who was victorious at this year’s London Marathon, set a sizzling pace as he left the field behind and ran much of the race surrounded only by his pacesetters.

Japan’s Akasaki Akira came second after a powerful latter half of the race, finishing almost four minutes behind Sawe, while Ethiopia’s Chimdessa Debele followed in third.

“I did my best and I am happy for this performance,” said Sawe.

“I am so happy for this year. I felt well but you cannot change the weather. Next year will be better.”

Sawe had Kelvin Kiptum’s 2023 world record of 2:00:35 in his sights when he reached halfway in 1:00:12, but faded towards the end.

In the women’s race, Wanjiru sped away from the lead pack after 25 kilometers before finishing in 2:21:05.

Ethiopia’s Dera Dida followed three seconds behind Wanjiru, with Azmera Gebru, also of Ethiopia, coming third in 2:21:29.

Wanjiru’s time was 12 minutes slower than compatriot Ruth Chepng’etich’s world record of 2:09:56, which she set in Chicago in 2024.

 

Continue Reading

Business

NIS Ends Decentralised Passport Production After 62 Years

Published

4 days ago

on

September 22, 2025

By

The Nigeria Immigration Service (NIS) has officially ended passport production at multiple centres, transitioning to a single, centralised system for the first time in 62 years.
Minister of Interior, Dr Olubunmi Tunji-Ojo, made the disclosure during an inspection of the Nigeria’s new Centralised Passport Personalisation Centre at the NIS Headquarters in Abuja, last Thursday.
He stated that since the establishment of NIS in 1963, Nigeria had never operated a central passport production centre, until now, marking a major reform milestone.
“The project is 100 per cent ready. Nigeria can now be more productive and efficient in delivering passport services,” Tunji-Ojo said.
He explained that old machines could only produce 250 to 300 passports daily, but the new system had a capacity of 4,500 to 5,000 passports every day.
“With this, NIS can now meet daily demands within just four to five hours of operation,” he added, describing it as a game-changer for passport processing in Nigeria.
“We promised two-week delivery, and we’re now pushing for one week.
“Automation and optimisation are crucial for keeping this promise to Nigerians,” the minister said.
He noted that centralisation, in line with global standards, would improve uniformity and enhance the overall integrity of Nigerian travel documents worldwide.
Tunji-Ojo described the development as a step toward bringing services closer to Nigerians while driving a culture of efficiency and total passport system reform.
According to him, the centralised production system aligns with President Bola Tinubu’s reform agenda, boosting NIS capacity and changing the narrative for improved service delivery.
Continue Reading

Business

FG To Roll Out Digital Public Infrastructure, Data Exchange, Next Year 

Published

4 days ago

on

September 22, 2025

By

The National Information Technology Development Agency (NITDA) has announced plans to roll out Digital Public Infrastructure (DPI) and the Nigerian Data Exchange (NGDX) platforms across key sectors of the economy, starting in early 2026.
Director of E-Government and Digital Economy at NITDA, Dr. Salisu Kaka, made the disclosure in Abuja during a stakeholder review session of the DPI and NGDX drafts at the Digital Public Infrastructure Live Event.
The forum, themed “Advancing Nigeria’s Digital Public Infrastructure through Standards, Data Exchange and e-Government Transformation,” brought together regulators, state governments, and private sector stakeholders to harmonise inputs for building inclusive, secure, and interoperable systems for governance and service delivery.
According to Kaka, Nigeria already has several foundational elements in place, including national identity systems and digital payment platforms.
What remains is the establishment of the data exchange framework, which he said would be finalised by the end of 2025.
“Before the end of this year and by next year we will be fully ready with the foundational element, and we start dropping the use cases across sectors,” Kaka explained.
He stressed that the federal government recognises the autonomy of states urging them to align with national standards.
“If the states can model and reflect what happens at the national level, then we can have a 360-degree view of the whole data exchange across the country and drive all-of-government processes,” he added.
Continue Reading

Trending