The Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA has raised concerns over the slow progress of the country’s electricity generation over the past two decades noting that it has only increased from 4500MW to around 5000MW. Speaking at the 9th Nigerian International Energy Summit NIES in Abuja during National Gas Day, NMDPRA Chief Executive Officer Engr Saidu Mohammed highlighted that Nigeria has the capacity to generate 13000MW but production remains constrained mainly by gas shortages while transmission issues account for only a small part of the limitation.
Mohammed emphasized that despite Nigeria’s gas reserves exceeding 200 trillion cubic feet only 8 billion standard cubic feet is produced for utilization. He described gas as not just an energy commodity but an economic enabler critical for sustainable power generation. To boost domestic supply, NMDPRA is advocating for improved gas pricing transparency in transportation tariffs operationalization of the gas network code and strict enforcement of domestic gas supply obligations.
The Decade of Gas Coordinator Ed Ubong explained that the government has approved arrangements for upstream producers to offset debts through royalty payments ensuring continued gas production and avoiding disruption in supply. NMDPRA also stressed the role of the Petroleum Industry Act PIA in regulating gas pricing for power and commercial use and the shift towards a performance driven regulatory framework.
NMDPRA’s intervention aims to strengthen gas supply enhance electricity generation and support economic growth through improved access to energy.
Leave a comment