The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has recognized the significant investment progress made by indigenous oil and gas companies in Nigeria’s energy sector. During a three-day operational tour of midstream facilities in Port Harcourt, Rivers State, the Chief Executive Officer of NMDPRA, Saidu Mohammed, highlighted the importance of these investments for the nation’s economic growth.
In his remarks at a facility visit to Aradel Holdings Plc, Mohammed underscored the midstream segment as a critical component in driving Nigeria’s industrialization. He praised Aradel for its substantial investments and urged other local firms, especially in the private sector, to follow suit. “I want to thank Aradel for what they have done and encourage other Nigerians, especially in the private sector, to imitate this and build on it — not only 11,000 barrels per day, but 50,000 or even 100,000 barrels per day,” he stated.
Mohammed emphasized that Nigeria possesses ample domestic demand for petroleum products and natural gas. He called for cleaner and more diversified energy solutions to meet this demand. While recognizing the Dangote Refinery as a significant achievement, he stressed that it cannot solely address the country’s escalating needs or its export ambitions. “What we desire to see is more of these kinds of assets. The midstream sector is where the growth of the Nigerian economy lies — where we can propel all other sectors from,” he remarked.
He further articulated that Nigeria’s goal should extend beyond fulfilling local market needs to include exporting refined petroleum products, such as Premium Motor Spirit (PMS), to international markets including Europe and the United States. Mohammed praised Aradel’s expansion program, noting the expectation that PMS will be loaded from the facility by the end of 2026 or early 2027, describing this as a significant and promising development.
The NMDPRA chief also pointed out that achieving a fully Nigerian-driven oil and gas value chain demands considerable private sector investment. According to him, the midstream sector alone will require between $30 billion and $50 billion. “These investments can only come from the private sector, not government anymore,” he stated, assuring that NMDPRA will continue to create a conducive regulatory environment to attract investments, enhance competition, and ensure operational excellence within the sector.
In addition, Mohammed disclosed that the Authority is actively working to guarantee an adequate and affordable gas supply nationwide. He explained that increasing supply and encouraging competition are essential for achieving price stability. “The more supply you have, the lower the price becomes. Affordable pricing can only come through competition, and that is what we want to achieve,” he noted, referencing the recent decline in PMS prices as a testament to market-driven competition.
The remarks from NMDPRA reflect a broader commitment to fostering a robust energy sector in Nigeria, which is viewed as essential for the country’s economic development and energy security. As indigenous firms expand their operations, the potential for growth and innovation within Nigeria’s oil and gas industry remains promising.
