KEY POINTS
- NMDPRA says Nigeria needs $30bn–$50bn in private investment to scale up midstream petroleum infrastructure.
- Tinubu’s subsidy removal is credited with reviving investor confidence and encouraging competition.
- Indigenous firms like Aradel are showcasing Nigerian-built, integrated energy assets that can be replicated nationwide.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, has asked private investors to put between $30 billion and $50 billion into Nigeria’s midstream petroleum sector. They say this part of the economy is very important for the country’s energy security, industrial growth, and long-term economic stability.
After a three-day tour of oil and gas facilities in Rivers State, the Chief Executive of NMDPRA, Engr. Saidu Mohammed, made the appeal. Mohammed said that the government can no longer pay for most of the money needed to build midstream infrastructure, which includes gas processing, pipelines, storage facilities, and refineries.
He says that Nigeria’s energy future now depends a lot on private capital, and the regulator’s job is to make sure that the country is a good place for long-term investment.
“The midstream sector alone will require about $30 billion to $50 billion in investments, and those investments can only come from the private sector, not government anymore,” Mohammed said.
Subsidy removal revitalising the sector
Mohammed noted that President Bola Ahmed Tinubu’s decision to remove fuel subsidies has triggered renewed confidence in the petroleum industry, opening space for competition and fresh capital inflows.
He said the end of subsidy distortions has helped to restore market realities, allowing investors to make long-term plans and encouraging efficiency across the value chain.
“No more subsidy has propelled the private sector to come in, and we will continue to build on that,” he stated, adding that federal and state governments have continued to demonstrate support for industry reforms.
The NMDPRA chief described the current period as a turning point, saying Nigeria is witnessing a gradual transition toward a more transparent, market-driven energy landscape.
Mohammed went to places run by Aradel Holding PLC during his tour. He said they were a great example of what local businesses can do with the right regulatory support.
He said that the authority was impressed by how well the company worked together, with Nigerians designing, building, funding, and running the business.
“They have been sending gas to NLNG for about 13 years. They have built a refinery that can process about 11,000 barrels of oil a day. He said, “We have also seen what they have done with gas in terms of a virtual pipeline, where compressed natural gas from here serves many parts of Nigeria.”
Mohammed said that one asset, like Aradel’s, is already meeting several energy needs, such as providing fuel, processing gas, and providing industrial feedstock. This shows why Nigeria needs to copy these models across the country.
