Nigeria to launch digital gas distribution licensing round

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced plans to launch a digital licensing round for gas distribution areas across Nigeria before the end of 2026.

Chief Executive Rabiu Umar disclosed the plan during the Gas Investment Forum 2026, noting that the licensing exercise will follow a nationwide gas distribution gridding exercise scheduled for completion in October. Once the areas are mapped, investors will be invited to bid for licenses covering specific territories, a process Umar compared to the awarding of oil-mining licenses in the upstream sector.

The initiative aims to transition Nigeria's gas sector from fragmented infrastructure toward an integrated, open-access system. Umar emphasized that while Nigeria possesses vast gas reserves, infrastructure is required to convert that potential into economic productivity and national resilience. The regulator is also accelerating approvals for various projects, including processing plants, pipelines, storage facilities, and liquefied natural gas developments, as part of the Federal Government’s Decade of Gas Initiative.