NMDPRA to Issue New Gas Distribution Licences Along AKK Corridor
By Ndubuisi Micheal Obineme
Abuja, Nigeria – The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced plans to issue a new phase of Gas Distribution Licences (GDLs) aimed at expanding natural gas access, accelerating industrial development, and strengthening regional gas distribution networks across Nigeria.
Speaking at the Association of Local Distributors of Gas (ALDG) Business Forum 2026, the Authority Chief Executive, Rabiu Abdullahi Umar, represented by Dr. Ayodinde Cardoso, Acting Executive Director, Systems Storage and Infrastructure, reaffirmed NMDPRA’s commitment to transforming Nigeria’s vast gas resources into tangible economic value through improved gas delivery infrastructure.
Umar noted that Nigeria holds over 200 TCF of proven natural gas reserves, with an estimated potential of 600 TCF, positioning the country among the world’s leading gas-rich nations.
However, he stressed that the success of Nigeria’s gas sector would ultimately be measured not by the volume of gas reserves or production, but by the extent to which gas is delivered for productive use across the country.
“While Nigeria’s gas abundance is well established, the challenge before us today is no longer gas availability but gas accessibility,” he stated. “The true value of gas is realized only when it reaches industries, power plants, businesses, CNG stations, industrial parks, and households that require reliable and affordable energy.”
He emphasized that achieving the Federal Government’s ambitious targets of increasing domestic gas supply to 10 bcf/d by 2027 and 12 bcf/d by 2030 will require significant investments in both transportation infrastructure and last-mile gas distribution systems.
To deepen domestic gas supply, Umar disclosed that NMDPRA is planning to commence the next phase of gas distribution licensing, particularly along the Ajaokuta-Kaduna-Kano (AKK) Pipeline Corridor.
Recall that the NMDPRA issued 10 Gas Distribution Licenses to key players in the Nigerian gas sector in 2025 to deepen domestic gas utilization. Key sectors such as power generation, LPG, and Compressed Natural Gas (CNG) benefit significantly from this initiative.
He highlighted the successful implementation of the first phase of NMDPRA’s Gas Distribution Licensing Framework, established in 2025 to promote pipeline gas distribution across designated zones nationwide.
According to him, the initial licence areas currently serve approximately 430 customers through more than 535 kilometres of gas distribution pipeline infrastructure, with an installed delivery capacity of approximately 442 million standard cubic feet of gas per day (MMSCFD).
Building on this progress, he said, “The Authority is advancing plans for the issuance of additional gas distribution licences along the AKK pipeline route to unlock new industrial clusters, deepen domestic gas penetration, and accelerate the development of regional gas distribution networks across Northern Nigeria.”
Speaking further, he said NMDPRA also acknowledged the growing role of virtual gas distribution through Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) trucking solutions, particularly in areas where permanent pipeline infrastructure has yet to be developed.
While describing virtual gas distribution as an effective transitional and complementary solution for market expansion, he reiterated that pipeline natural gas infrastructure remains the most efficient, reliable, and scalable long-term model for nationwide gas utilisation.
NMDPRA’s Chief Executive assured investors, gas distributors, and other stakeholders of its commitment to maintaining a modern, commercially focused, and investment-friendly regulatory environment that supports infrastructure expansion, supply reliability, market activation, and operational efficiency across the gas value chain.
“The Authority remains fully committed to working with investors and local distributors to unlock investment, deepen domestic gas penetration, and accelerate infrastructure delivery that will transform Nigeria’s gas abundance into meaningful access for industries, businesses, and households,” he added.
