Summary
In March 2021, the “Decade of Gas” programme was launched to transition Nigeria into a major global exporter. This study examines how the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is aligning key government objectives with existing sector capacities to optimize Nigeria’s vast gas resources through the Petroleum Industry Act (PIA) framework.
The Decade of Gas Initiative
In March 2021, President Muhammadu Buhari launched the “Decade of Gas” programme, an initiative to transition Nigeria to the status of a major exporter of gas. The Federal Government’s policy aims to exploit its vast gas reserves to ensure that Nigeria is not just a consuming nation but a big player on the international scene.
The initiative, coming on the heels of the National Gas Expansion Programme (NGEP), seeks to expand domestic use of LPG, autogas, and energy penetration. This is one of the key strategies intended to ensure the optimal maximization of Nigerian oil and gas resources. At the World Gas Conference held in South Korea, discussions were held between Nigerian government officials and foreign firms regarding the construction of LPG vessels to boost domestic supply.
Regulatory Framework and Stakeholder Engagement
The petroleum industry is currently fine-tuning strategies to actualize the Decade of Gas policy. A central component of this is the formulation of policies that bring key government objectives into alignment with the existing capacities within the sector. Engr. Farouk A. Ahmed, Authority Chief Executive (ACE) of the NMDPRA, stated that the Authority, as stipulated by the Petroleum Industry Act (PIA), has unfolded ten draft regulations.
These regulations, drafted in consultation with industry stakeholders, were reviewed during a four-day workshop. Engr. Ahmed emphasized that the priority of the NMDPRA is to ensure these regulations serve as primary enablers for the initiative, catalyzing investment and enhancing the attractiveness of the domestic gas value chain.
Unlocking Sector Potential
Mr. Idaere Ogan, Chairman of the Governing Board of NMDPRA, reiterated the Authority’s willingness to actively involve stakeholders before finalizing regulations. The Minister of State for Petroleum Resources, Chief Timipre Sylva, decried the historical state of the industry, noting that while the local energy landscape has been dire, regulatory instruments now provide the “ingenious solutions” required for amelioration.
The Minister further stated that these consultations ensure the regulatory instruments meet present and future aspirations for increased investment. Senator Philip Aduda, speaking for the Senate Committee on Downstream, noted that these secondary regulations will complement the PIA in successfully unlocking the potential of the sector. Following the review, three syndicate groups provided essential feedback on the draft regulations to finalize the roadmap for domestic gas maximization.
