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FG Issues 25-year Licence To 10 Gas Distribution Coys
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”.
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The Federal Government has launched the South-West zonal engagement and ministerial advocacy tour on the Cooperative Bank of Nigeria share capital mobilisation, sensitisation and cooperative sector digitalisation.
Reports say the initiative was launched through the Federal Ministry of Agriculture and Food Security.
According to reports, the advocacy tour, organised by the ministry’s Federal Department of Cooperatives, began on Monday in Lagos.
Speaking at the event, the Minister of State for Agriculture and Food Security and Supervising Minister of Cooperative Affairs, Dr Aliyu Abdullahi, said the initiative was part of President Bola Ahmed Tinubu’s Renewed Hope Agenda.
Abdullahi described the exercise as a strategic effort to reposition the cooperative sector as a key driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity.
“Today represents a defining moment in our collective determination to reposition the cooperative sector as a major driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity,” he said.
The minister noted the modern cooperative movement in Nigeria originated in the South-West following the 1934 Strickland Report, which led to the enactment of the Cooperative Societies Ordinance of 1935.
According to him, the decision to commence the sensitisation and share capital mobilisation tour in the region is symbolic, as it marks a return to the roots of cooperative development in the country.
Abdullahi said the advocacy tour was a direct outcome of resolutions reached at the 8th Regular Meeting of the National Council on Cooperative Affairs held in Abuja in March 2026.
He said the council approved the Renewed Hope Cooperative Reform and Revamp Programme, a comprehensive framework designed to strengthen the cooperative sector and align it with the administration’s goal of building a one-trillion-dollar economy.
“The reform programme focuses on seven strategic pillars, including governance reforms, cooperative financing and the establishment of the Cooperative Bank of Nigeria, digitalisation, capacity building, value chain development, inclusion of youths, women and persons with disabilities, and strategic partnerships,” he said.
He said the establishment of the Cooperative Bank of Nigeria and the digitalisation of the cooperative sector were the two major transformational initiatives under the programme.
“The Cooperative Bank of Nigeria is aimed at rebuilding a strong cooperative financial system capable of supporting cooperators, farmers, artisans, traders, SMEs, youths, women and persons with disabilities with accessible and affordable financial services,” he said.
Abdullahi emphasised that the proposed bank would be government-enabled but not government-funded.
“Government is not establishing the bank as an owner, nor will it rely on Treasury Single Account funds.
“The role of government through the FMAFS is to provide policy support, stakeholder coordination, regulatory facilitation and an enabling environment under the Renewed Hope Cooperative Reform and Revamp Programme,” he said.
Also speaking, the Lagos State Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs Folashade Ambrose-Medebem, reaffirmed the state government’s commitment to cooperative sector transformation.
She described cooperatives as critical tools for promoting inclusive growth, grassroots productivity, food security, financial inclusion and community wealth creation.
Ambrose-Medebem said Lagos State would continue to support reforms and collaborate with stakeholders to ensure the successful implementation of the Renewed Hope Cooperative Reform and Revamp Programme (2025–2030).
“Together, let us build a cooperative ecosystem that is modern, transparent, digitally enabled, financially inclusive and globally competitive.
“Let us build cooperatives that not only mobilise savings, but also mobilise prosperity,” she said.
The Nigeria Customs Service (NCS), Federal Operations Unit (FOU) Zone ‘A’, Ikeja, has impound Cocaine Substance valued at ?2.35 billion alongside 15 trailer-loads of foreign rice and a wide range of contraband across the South-West.
This was disclosed to Newsmen during a press briefing in Lagos by Controller of the Unit, Comptroller Gambo Aliyu,
Aliyu revealed that the seizures were made over an eight-week period, underscoring intensified enforcement efforts.
According to him, operatives foiled 473 smuggling attempts within the period, leading to the confiscation of 8,794 bags of 50kg foreign rice, 22 used vehicles, 328 bales of used clothing, and 31,705 litres of Premium Motor Spirit (PMS).
He said other seized items include a Mercedes-Benz vehicle and various food products such as poultry, vegetable oil, spaghetti, and sugar.
Aliyu clarified that the rice displayed at the briefing represented cumulative interceptions made at different locations and times across the zone.
“All the rice you see here are accumulative of seizures carried out at different places, at different times, and through different interdictions,”
Beyond the economic implications, the Comptroller emphasized the social cost of drug trafficking, warning that narcotics continue to destroy families and fuel criminal activities.
“It may surprise you to know that many homes are broken due to drugs.
” Our mandate is to cut off the supply chain, and that is exactly what we are doing,”.
Similarly Customs operatives at the Gbaji outpost intercepted a 71 year-old suspect along the Lagos-Abidjan corridor with 6.35kg of cocaine concealed in a Toyota Highlander.
The drugs, comprising both powdered and crystalline forms, were valued at ?2.35 billion.
Under a special enforcement drive, codenamed “Operation Hawk,” the unit also seized 3,340 parcels of synthetic cannabis, popularly known as “Ghanaian loud,” weighing 1,540kg.
The substances, along with three suspects, have been handed over to the National Drug Law Enforcement Agency (NDLEA) for further investigation and prosecution.
In a related operation, officers intercepted four cylinders of mercury hidden in a vehicle along the same corridor. Aliyu described the substance as hazardous and subject to international regulation.
Overall, the Duty Paid Value (DPV) of the seizures stands at approximately ?5.5 billion, reflecting the scale of enforcement activities.
Additionally, the unit recovered ?97.7 million through Demand Notices issued on under-declared consignments.
Aliyu reaffirmed the Service’s commitment to deploying modern technology—including geospatial intelligence, drone surveillance, and real-time tracking—to strengthen border security and clamp down on smuggling networks.
CHINEDU WOSU
Chief Executive Officer of Norges Bank Investment Management, Nicolai Tangen ( manager of the world’s largest sovereign wealth fund) has expressed interest in partnering with Dangote Group to expand investments across Africa, particularly in strategic sectors such as power, energy, renewable energy, agriculture, fertiliser and cement.
This was made known during a meeting of Chief Executive of Dangote Group, Aliko Dangote with Nicolai Tangen, the manager of Norwegian investment institution (with assets estimated at about $1.9 trillion) .
Also present at the meeting were Svein Tore Holsether, Chief Executive Officer of Yara International, and Terje Pilskog, Chief Executive Officer of Scatec, a global renewable energy company.
The engagement reflects growing international investor confidence in Africa’s industrial and infrastructure potential, as well as the increasing role of indigenous conglomerates such as Dangote Group in driving large-scale economic transformation across the continent.
Industry observers say the proposed collaboration could create significant opportunities for investments in critical sectors linked to energy transition, food security, industrialisation and infrastructure development.
The Norwegian sovereign wealth fund, regarded as one of the world’s leading institutional investors, has in recent years increased its focus on emerging markets, with Africa seen as a major frontier for long-term investment and value creation.
Analysts believe a partnership between Norges Bank Investment Management and Dangote Group could unlock substantial capital flows into infrastructure and industrial projects across Africa, helping to accelerate economic growth and regional integration.
Nkpemenyie Mcdominic, Lagos
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