Economy
NMDPRA Targets Gas Utilisation to Cut High Cost of Doing Business
By Adedapo Adesanya
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has disclosed that the country’s natural gas exploitation and utilisation would help cut down the cost of doing business by 40 per cent.
Its chief executive, Mr Farouk Ahmed, at a one-day stakeholders engagement on Gas Utilisation in Nigeria, said that it has become important for companies and homes to key into gas utilisation as alternative fossil fuel.
Mr Ahmed, who was represented by Mr Ogbugo Ukoha, the Executive Director, Distribution, System, Storage and Retailing Infrastructure of NMDPRA, enjoined Nigerians to massively adopt the usage of gas as against diesel and petrol for their daily energy needs.
He said that this would reduce the nation’s carbon footprint and tackle global warming as well as climate change.
“It will also help to reposition the economy for sustainable growth and accelerate job creation since gas is believed to be the future of the nation’s economy,” he noted.
Mr Ahmed said that the essence of the engagement was to encourage large consumers of petroleum products to become aware of the comparative advantages between the different fuels, particularly gas, which he added had been designated as Nigeria’s transition fuel.
He explained that to promote gas usage and investment, the federal government had various initiatives and policy frameworks which included the National Gas Expansion Programme (NGEP) and the Decade of Gas Programme.
He observed that the Petroleum Industry Act (PIA) 2021 had also enabled investments in the industry.
Mr Ahmed expressed gladness that the government effort was yielding significant results but added that more collaborations were needed to improve domestic gas utilisation.
The NMDPRA boss reiterated that Nigeria was blessed with abundant gas reserves, enough to last the nation for the next 90 years.
According to him, effective gas utilisation will make the nation become richer and the environment safer because it is much cleaner than other petroleum derivatives.
He said another great benefit of gas utilisation was the tendency to reduce the cost of doing business by 40 per cent.
Mr Ahmed called on heavy consumers of energy to convert their diesel generators to gas engines, saying that it was cost-effective.
He also advised consumers on the need to be properly licensed because of the numerous benefits attached.
These, he noted, include ensuring the safety of facilities and regular supplies of the product from the authority.
Delivering a keynote address, Mr Ogbugo Ukoha, the Executive Director, Distribution, System, Storage and Retailing Infrastructure of NMDPRA, said that many institutions were ‘heaviest consumers’ of diesel and have been identified as operating outside the regulatory oversight, which is not in accordance with the Petroleum Industry Act (PIA).
Mr Ukoha, who was represented by Mr Ayo Cardoso, Coordinator, South West of NMDPRA, said the engagement was enlightenment on the need to obtain the requisite petroleum storage urgently.
Mr Ukoha said the exercise was to take advantage of the evolving opportunities in the gas value chain for sustainable business growth.
He said the enactment of the PIA 2021 was designed to enable Nigeria to derive more value from its natural gas.
According to him, Nigeria is embarking on different initiatives, projects and policies to enhance the performance of the oil and gas sector.
He said one of the gas initiatives in Nigeria includes the NGEP, which was designed to provide framework and policy support to extend the gas supply and utilisation in power generation, gas-based industries and emerging niche gas sectors.
“Such sectors are gas in transportation, Liquefied Petroleum Gas (LPG) for cooking and remote virtual gas supply using trucks to convey LNG and Compressed Natural Gas (CNG) to industries,” he said.
He noted that natural gas was projected to be the leading fossil fuel and well-positioned as a sustainable fuel for an effective energy transition.
Also speaking, Mr Oladipo Olatunbosun, National President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), said that the unaffordability of LPG posed serious challenges to the common man.
Mr Olatunbosun urged the authority to review the pricing of cooking gas to attract more utilisation and penetration.
He appealed to NMDPRA to sanction all illegal LPG skid operators within their operational cycle to create opportunities for legitimate marketers.
By Adedapo Adesanya
The Special Adviser to the President on Energy, Mrs Olu Verheijen, has said Nigeria requires about $38.3 billion in fresh investment to sustain current oil and gas production and achieve its 2030 output targets.
Speaking at the recently concluded 25th NOG Energy Week Conference and Exhibition in Abuja, Mrs Verheijen said global investors are now prioritising countries with predictable policies, competitive fiscal terms and credible regulatory systems.
“For Africa, that question is urgent. And for Nigeria, the scale of the task is equally clear: to sustain the current base and grow toward our 2030 production target, analysis shows a financing gap of about $38.3 billion,” she said.
According to her, the era when countries relied solely on resource endowment to attract capital has ended.
“Capital has no passport. It is rational. It prices risk. It follows credibility. It asks one question: can this country turn resources into bankable projects, and bankable projects into reliable returns?”
She said Nigeria had deliberately repositioned itself through reforms aimed at improving investor confidence and accelerating project execution.
“We recalibrated fiscal terms, clarified regulation and streamlined oversight. We introduced targeted incentives and cut contracting timelines by more than half. We made a clear statement to the world: Nigeria is no longer asking to be trusted; Nigeria is working to be bankable.”
Highlighting progress recorded under the reforms, Verheijen said Nigeria now has more than $50 billion worth of upstream projects in its visible investment pipeline.
“We now have more than 50 billion dollars of upstream projects in the visible pipeline. In the last three years, more than 10 billion dollars of long-awaited final investment decisions have come through.”
She added that crude oil and condensate production has increased by about 400,000 barrels per day since 2023, while onshore production is at its highest level in two decades.
“Crude oil and condensate production has risen by about 400,000 barrels per day since 2023. Onshore production is at its strongest level in twenty years.”
Mrs Verheijen said the Federal Government remains committed to achieving its target of producing three million barrels of oil per day and 10 billion standard cubic feet of gas daily by 2030, while strengthening Nigeria’s competitiveness in the global energy market.
She also highlighted ongoing reforms in the power sector, including the N4 trillion Presidential Power Sector Financial Reforms Programme, which she described as critical to restoring confidence across Nigeria’s electricity value chain.
On gas development, she said the government was expanding domestic LPG supply, improving affordability and supporting investments through tax and import duty incentives.
“A gas-rich nation cannot be comfortable when families are priced back to firewood, charcoal or kerosene,” she said.
Mrs Verheijen stressed that Nigeria’s ambition extends beyond exporting crude oil to building an industrial economy anchored on value addition.
“We have chosen not merely to produce molecules, but to convert molecules into megawatts, fertiliser, petrochemicals, mobility, manufacturing, jobs and exports.”
She concluded that the country’s reforms were laying the foundation for long-term growth despite lingering challenges.
“The age of Nigerian hesitation is ending. The age of Nigerian ambition has begun. Our task now is to turn reform into relief, capital into projects, projects into jobs, and energy into national greatness.”
By Adedapo Adesanya
Nigeria’s headline inflation rate in June 2026 moderated to 15.91 per cent from 15.93 per cent in May, as pressure from the Iran war mildly eased, though it largely remained in focus during the review month.
In the report on Wednesday, the statistical office showed that the headline inflation rate for June on a month-on-month basis was 1.66 per cent, 0.09 per cent lower than the 1.75 per cent recorded in May 2026.
On an annualised basis, the print was down from 25.29 per cent in the same month of the preceding year (June 2025). This was due to the rebasing of the calculation year from 2009 to 2024.
The rise in prices, which stemmed from the continued conflict in the Middle East, continued to stoke food prices and energy costs, which account for a huge chunk of average spending.
The food inflation rate in May 2026 on a month-on-month basis was 3.75 per cent, up by 0.77 percentage points from May 2026 (2.98 per cent), while on a year-on-year basis, it was 17.52 per cent and stood at 25.41 per cent in the same month of the preceding year (June 2025).
At 15.91 per cent print, the inflation marginally beat expectations by Meristem Research, predicted at 15.95 per cent.
There had been expectations that the ceasefire between the United States and Iran would help drive oil prices lower, raising expectations of some relief on the inflation front. However, with conflicts now flaring up again, oil prices are likely to increase again, and the anticipated easing in energy-driven inflation may not materialise as broadly as earlier envisaged.
Meristem Research said it expects inflationary pressures to re-emerge across key economies in the near term, as the re-escalation of the US-Iran conflict has reignited upward pressure on global oil prices.
This will be a core factor that the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) will be looking at when it meets for the next policy meeting. At its last meeting, the committee left benchmarked interest rates at 26.5 per cent.
By Adedapo Adesanya
The National Pension Commission (PenCom) has defended its decision to allow Pension Fund Administrators (PFAs) to invest in the parent companies of their custodians, insisting that adequate safeguards are in place to protect contributors’ funds.
The director-general of the pension regulator, Ms Omolola Oloworaran, speaking on Tuesday during the Meet the Press Briefing at the Presidential Villa, Abuja, said the commission’s decision to relax the investment restriction followed a comprehensive risk assessment that found minimal conflict of interest.
She explained that under PenCom’s investment regulations, PFAs are only permitted to invest pension assets in carefully selected instruments that meet stringent criteria, including profitability, strong credit ratings and proven track records.
According to her, the commission regularly reviews its investment regulations, conducts routine examinations and spot checks on PFAs to ensure strict compliance with established risk management guidelines.
“PFAs cannot just go into the stock market and buy any kind of stock. There are strict guidelines. Companies must demonstrate profitability, have a proven track record and satisfy other criteria before pension funds can invest,” she said.
Ms Oloworaran noted that each PFA also operates under the oversight of a board, an investment committee and a risk management committee, providing additional layers of governance to safeguard contributors’ funds.
She said PenCom recently issued a circular allowing PFAs to invest in the parent companies of their custodians after determining that the potential conflict of interest was negligible.
The PenCom boss explained that the parent companies involved are largely Tier-1 banks, including First Bank, United Bank for Africa (UBA) and Zenith Bank, which she described as A-rated institutions with strong financial foundations.
She said the policy was intended to widen investment opportunities for pension funds without compromising safety.
Using Stanbic IBTC as an example, Ms Oloworaran explained that if its custodian is Zenith Bank, the previous restriction prevented the pension administrator from investing in Zenith Bank shares despite the bank’s strong performance.
“We reviewed the risks and any potential conflict of interest and found the risks to be very low. That is why we opened that investment window,” she said.
