The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it is working with both private and government-owned companies to ensure steady and affordable gas supply across the country, as part of efforts to stabilise prices and deepen competition in the energy market.
The Chief Executive Officer of the Authority, Saidu Mohammed, gave the assurance during a three-day inspection tour of midstream oil and gas facilities in Port Harcourt, Rivers State, at the weekend.
According to Mohammed, increased supply remains the key driver of lower prices, noting that competition, rather than subsidies,will deliver sustainable affordability for consumers.
“What we are trying to do is to make sure that ample supply is there. Ample supply, as basic economics says, the more supply you have, the lesser the price it becomes. And that’s where we desire to be,” he said.
He explained that the Authority’s objective is to ensure adequate availability of gas and petroleum products at competitive prices, citing recent price movements in Premium Motor Spirit (PMS) as evidence of the impact of market competition.
“You can see how we have demonstrated it on PMS. You can see how prices of PMS have gone from N1,000 to N800. And that is what competition brings. As long as we are not subsidising any segment of the business, we will get the desired goal,” Mohammed added.
The NMDPRA boss also expressed satisfaction with the growing investment footprint of indigenous oil and gas companies, describing the midstream segment as a critical engine for Nigeria’s economic growth and industrialisation.
Speaking during a facility tour at Aradel Holdings Plc, Mohammed commended the company’s expanding investments and urged other Nigerian investors, particularly in the private sector, to emulate its example.
“What we desire to see is more and more of this kind of assets. The midstream sector is where the growth of the Nigerian economy is, where we can propel all other sectors,” he said, adding that Nigeria has sufficient market demand for petroleum products, gas and cleaner energy.
He stressed the need for additional refineries beyond the Dangote Refinery, noting that Nigeria’s ambitions extend beyond domestic consumption to regional and global markets.
“We need more and more refineries. Dangote refinery alone will not be enough. Our desire is not only for the Nigerian market. We are also looking at the entire African continent and beyond,” Mohammed said.
He noted that Aradel’s expansion plans, which include the production of PMS by 2027, demonstrate the type of value addition Nigeria needs, particularly the conversion of products such as fuel oil and naphtha into higher-value outputs like LPG and gasoline.
“Our aspiration, really, at the end of the day, is to have the entire economy, the entire value chain of oil and gas, being run by Nigerians,” he said, while acknowledging that achieving this goal would require significant capital investment.
Mohammed disclosed that the midstream oil and gas sector alone would require between $30 billion and $50 billion in investment, largely from the private sector.
“As a regulator, what we will do is to make sure that we lay down the desired enablers for them to operate and attract the investment that Nigeria needs,” he said. “The improvement can be seen here in a world-class facility being operated by Nigerians, and that is the way to go.”
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