The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has assured citizens that it is collaborating with private and government firms to ensure adequate gas supply at affordable prices nationwide. According to the Chief Executive Officer of NMDPRA, Saidu Mohammed, the goal is to increase supply, which will in turn lead to lower prices due to competition.
Mohammed made these remarks during a three-day tour of midstream oil and gas facilities in Port Harcourt, Rivers State. He emphasized the importance of ample supply, stating that it is a key factor in reducing prices. The NMDPRA CEO cited the example of Premium Motor Spirit (PMS), whose prices have decreased from N1,000 to N800 due to competition.
Mohammed expressed satisfaction with the investment strides made by Nigerian indigenous oil and gas firms, particularly Aradel Holdings Plc. He identified the midstream market as a crucial sector for the nation’s economic growth and industrialization. The NMDPRA CEO encouraged other Nigerian firms to follow Aradel’s lead, noting that the country has a large market for petroleum products and gas.
The midstream sector requires significant investment, with estimates suggesting between $30 billion and $50 billion is needed. Mohammed emphasized that these investments can only come from the private sector, and as a regulator, the NMDPRA will create an enabling environment to attract the necessary funds. He highlighted the importance of world-class facilities, such as the one operated by Aradel, in achieving this goal.
The NMDPRA’s efforts to increase gas supply and reduce prices are crucial for the country’s economic development. With the right investment and regulatory framework, Nigeria can satisfy its local demand and even export petroleum products to other countries. As the authority continues to work towards this goal, it is essential to monitor progress and address any challenges that may arise. The success of this initiative will have a significant impact on the country’s economy and energy sector, making it an important story to follow in the coming months.
