NMDPRA commences performance assessment of licensed gas distributors

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has begun a two-day performance review of licensed gas distribution companies, aimed at enhancing compliance and improving operational efficiency in the sector.

The review session, which kicked off on Wednesday in Abuja, is being carried out in accordance with the Petroleum Industry Act (PIA), which requires regular assessments to evaluate licensee performance and service quality within Nigeria’s gas distribution network.

In a statement, the NMDPRA explained that the review exercise is centred on regulatory compliance, operational standards, and adherence to Health, Safety, Environment, and Compliance (HSE\&C) requirements by licensed operators.

The exercise takes place against the backdrop of Nigeria’s continued power generation challenges, as the Federal Government seeks to boost domestic gas utilisation to address the country’s energy supply deficit.

Recent remarks by industrialist and President of the Dangote Group, Alhaji Aliko Dangote, have intensified calls for more aggressive power generation goals.

During a tour of the Dangote Refinery in Lagos, Dangote expressed concern over Nigeria’s limited power output, noting that the current generation capacity of approximately 5,000 megawatts is grossly inadequate for a population exceeding 200 million.

“We as a company alone are producing, group-wide for our consumption, over 1,500 MW. So, Nigeria should not be doing just three times that,” Dangote said. “We should be generating at least 50,000 to 60,000 megawatts.”

He added that private sector involvement would be essential to expanding Nigeria’s power infrastructure, noting that building large-scale energy projects is achievable, as demonstrated by the refinery.

“What we have done here is much more difficult than making Nigeria 25,000 or 30,000 megawatts of power. But it’s not the work of government alone,” he said.