FG Issues Gas Distribution Licenses To NNPC, Shell, NIPCO, others
By Sulaimon Salau
The Federal Government has awarded 10 Gas Distribution Licenses to six top-tier firms, marking a significant leap towards deepening gas utilization in the country.
The beneficiary firms are NNPC Gas Marketing Limited, Shell Nigeria Gas Ltd, AXXELA, NIPCO PLC, Central Horizon Gas Company and Falcon Corporation Limited.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in an address at the event in Abuja today (Tuesday), said the move reaffirms the government’s commitment to sustainable development of Nigeria’s vast gas resources.
Ekpo praised President Bola Ahmed Tinubu’s visionary leadership, which enabled the license issuance, and appreciated the NMDPRA’s regulatory reforms under the leadership of the Authority Chief Executive, Mr. Farouk Ahmed.
The Minister said the issuance of the licenses is expected to increase access to gas for domestic and industrial use, driving economic growth and development nationwide. He said access to affordable and sustainable energy, like gas, is key to unlocking Nigeria’s entrepreneurial potential.
“This step is not just about meeting regulatory requirements; it is about building a future where gas serves as a foundation for economic growth, industrialization, and improved quality of life for all Nigerians,” Ekpo said.
“Our president gave gas its unique identity and has enabled several opportunities in the gas space. The gas industry has expanded rapidly in terms of business opportunities and governmental directives because of President Bola Ahmed Tinubu’s crucial position.”
The licenses were issued in line with Section 148 of the Petroleum Industry Act (PIA) 2021, which mandates the NMDPRA to issue Gas Distribution Licenses to qualified individuals and organizations. This move is part of the government’s efforts to implement the PIA and Gas Distribution Regulations of 2023.
The initiative is expected to open up opportunities across several key sectors, including Energy-Intensive Industries, Power Generation, Clean Cooking Initiative, Gas Reticulation, Compressed Natural Gas Mobility, and Energy Parks and Special Economic Zones.
The Gas Minister said these opportunities align with the government’s vision of “Gas to Prosperity,” where natural gas plays a transformative role in fostering industrialization, creating employment opportunities, and generating revenue for sustainable national development.
He said a thriving domestic gas market is crucial to achieving the government’s ambitions under the
Decade of Gas Initiative
The Gas Distribution License framework is expected to promote accessibility and availability of gas, encourage infrastructure development, and enhance energy security for all Nigerians, Ekpo added.
