The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has commended the investment efforts of Nigerian indigenous oil and gas companies. During a recent three-day operational tour of midstream facilities in Port Harcourt, Rivers State, the Authority’s Chief Executive Officer, Mr. Saidu Mohammed, emphasized the importance of these investments for the country’s energy sector.
In his remarks during a visit to Aradel Holdings Plc, Mohammed described the midstream segment as critical to Nigeria’s economic development and industrialization. He praised Aradel for its commitment to expanding its operations and urged other companies 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 pointed out that Nigeria possesses sufficient domestic demand for petroleum products and gas, highlighting the need for cleaner and more diversified energy sources. He noted that while the Dangote Refinery represents a significant achievement, it alone cannot satisfy the increasing demand or the country’s aspirations for exports. “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 explained.
The NMDPRA CEO articulated a vision for Nigeria to not only meet local needs but also to supply refined petroleum products, such as PMS, to international markets, including Europe and the United States. He praised Aradel’s expansion plans, which are expected to enable PMS loading from its facility by the end of 2026 or early 2027, calling this progress “incredible and in the right direction.”
The ambition for Nigeria’s oil and gas sector is to have the entire value chain driven by local investment, which requires substantial financial backing from the private sector. “The midstream sector alone will require between $30 billion and $50 billion in investment. These investments can only come from the private sector, not government anymore,” Mohammed noted.
He assured stakeholders that NMDPRA will continue to provide a conducive regulatory environment to attract investments, foster competition, and ensure operational excellence throughout the sector. Additionally, he revealed that the Authority is focusing on ensuring adequate and affordable gas supply across the nation, emphasizing that increased supply and competition are vital for 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 stated, referencing the recent drop in PMS prices as an example of successful market-driven competition.
The commitment of NMDPRA to support the growth of indigenous companies highlights a pivotal moment for Nigeria’s energy landscape. As the country seeks to diversify its energy resources and enhance production capabilities, the role of local players like Aradel becomes increasingly crucial to achieving long-term economic goals.
