Nigeria Plans Digital Licensing Round for Gas Distribution Areas by 2026

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced plans to open a digital licensing round for gas distribution areas across the country by the end of 2026. This move is aimed at moving the natural gas sector away from its current fragmented infrastructure and access system towards a truly open-access regime.

NMDPRA Chief Executive, Rabiu Umar, disclosed this in his opening remarks at the Gas Investment Forum 2026, themed ‘Positioning Nigeria as Africa’s Global Gas Powerhouse’. He stated that investors will bid for gas distribution licences in areas mapped out across the country. This exercise is part of efforts to convert Nigeria's vast gas reserves into infrastructure capable of supporting economic activities.

Umar emphasized that gas infrastructure must facilitate the movement of gas from wellheads to processing plants, pipelines, power stations, industrial clusters, transport corridors and homes, as well as export terminals. He described the Federal Government’s Decade of Gas Initiative as “an engine of execution,” stating that the NMDPRA is accelerating licences and approvals for processing plants, pipelines, storage facilities, compressed natural gas and liquefied natural gas projects.

The NMDPRA chief also welcomed discussions on floating LNG at the forum, noting that Nigeria needed new initiatives as it deepened CNG and LNG penetration. He stated that the LNG market had changed significantly in recent years, with the commodity no longer being associated solely with Nigeria LNG Limited.