KEY POINTS
- NMDPRA to issue new gas distribution licences for AKK corridor
- Plan aims to boost industrial growth in northern Nigeria
- Nigeria targets higher gas output and wider domestic access
The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, has announced plans to expand gas distribution infrastructure along the Ajaokuta–Kaduna–Kano (AKK) pipeline corridor as part of efforts to boost industrial development and improve energy access across Nigeria.
The initiative is expected to support the creation of new industrial clusters, attract investment, and enhance gas availability, particularly in northern Nigeria where energy access has remained limited.
Speaking at the Association of Local Distributors of Gas (ALDG) Business Forum in Abuja, the Authority Chief Executive of NMDPRA, Mr. Rabiu Umar, represented by Engr. Ayorinde Cardoso, said the next phase of Gas Distribution Licences (GDLs) would prioritise locations along the AKK pipeline corridor.
He explained that Nigeria’s challenge is no longer gas availability but ensuring effective delivery to end-users, including industries, power plants, businesses, compressed natural gas (CNG) stations, and households.
Despite the country’s estimated gas reserves of over 209 trillion cubic feet, he noted that infrastructure gaps continue to limit efficient distribution and utilisation.
Production Targets and Infrastructure Push
The Federal Government has set ambitious production targets aimed at increasing gas supply to 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030.
According to the NMDPRA, achieving these targets will depend heavily on both major pipeline projects such as AKK and OB3, as well as expanded distribution networks that connect supply sources directly to consumers.
The agency stressed that without strong distribution systems, increased production alone would not translate into improved access or economic benefits.
Umar highlighted progress made under the Gas Distribution Licensing framework established by the Petroleum Industry Act (PIA) 2021.
He disclosed that 10 gas distribution licences were issued in 2025, with licensed networks currently serving about 430 customers across Nigeria.
These networks reportedly cover over 535 kilometres of pipelines and have a combined capacity of 442 million standard cubic feet per day.
The NMDPRA described gas distribution as a critical pillar in Nigeria’s energy transition and economic diversification agenda.
While acknowledging the growing role of virtual gas transportation through compressed natural gas (CNG) and liquefied natural gas (LNG) trucking, the agency maintained that pipeline gas remains the most efficient and sustainable option for large-scale domestic use.
Officials emphasised that expanding gas infrastructure is essential to reducing energy costs, improving industrial productivity, and supporting long-term national development goals.
