Lagos, Nigeria (VOICE OF NAIJA)- The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has unveiled plans to issue a fresh round of Gas Distribution Licences (GDLs) along the Ajaokuta-Kaduna-Kano (AKK) Pipeline corridor as part of efforts to deepen domestic gas utilisation, stimulate industrialisation and expand energy access across the country.
Speaking at the Association of Local Distributors of Gas (ALDG) Business Forum 2026, the Authority Chief Executive, Rabiu Abdullahi Umar, represented by Ayodinde Cardoso, Acting Executive Director, Systems, Storage and Infrastructure, said the initiative aligns with Nigeria’s broader strategy of converting its vast gas reserves into measurable economic and industrial value.
According to Umar, Nigeria’s proven natural gas reserves exceed 200 trillion cubic feet (TCF), with potential reserves estimated at about 600 TCF, placing the country among the world’s most gas-endowed nations. He, however, stressed that the real challenge is no longer gas availability but ensuring reliable access to consumers and industries.
“While Nigeria’s gas abundance is well established, the challenge before us today is no longer gas availability but gas accessibility. The true value of gas is realised only when it reaches industries, power plants, businesses, CNG stations, industrial parks and households that require reliable and affordable energy,” he said.
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He noted that the Federal Government’s target of raising domestic gas supply to 10 billion cubic feet per day (bcf/d) by 2027 and 12 bcf/d by 2030 would require sustained investments in transportation infrastructure and last-mile distribution networks.
To support that objective, NMDPRA is preparing to launch the next phase of its gas distribution licensing programme, with particular focus on communities and industrial clusters located along the AKK pipeline route.
The regulator had in 2025 issued 10 Gas Distribution Licences to key operators to accelerate domestic gas penetration and support sectors such as power generation, Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG).
Umar said the first phase of the Gas Distribution Licensing Framework has already delivered significant results. The licensed distribution areas currently serve about 430 customers through more than 535 kilometres of gas pipeline infrastructure, with a combined delivery capacity of approximately 442 million standard cubic feet of gas per day (MMSCFD).
Building on that progress, he disclosed that additional licences along the AKK corridor would unlock new industrial hubs, strengthen regional gas networks and expand access to cleaner and more affordable energy across Northern Nigeria.
“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,” he said.
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The NMDPRA also highlighted the growing contribution of virtual gas distribution through CNG and LNG trucking solutions, particularly in underserved locations where pipeline infrastructure is yet to be developed.
While describing virtual gas transportation as an important bridge for market expansion, Umar maintained that pipeline-based gas delivery remains the most efficient, reliable and scalable long-term solution for achieving nationwide gas utilisation.
He assured investors and gas distributors of the Authority’s commitment to maintaining a transparent, commercially driven and investment-friendly regulatory framework that supports infrastructure expansion, supply reliability and market growth.
“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.
“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.
