The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reaffirmed its dedication to promoting a safe, regulatory-compliant environment for Nigeria’s emerging Compressed Natural Gas (CNG) market.
Speaking on Monday at the 18th Oil Trading & Logistics (OTL) Africa Downstream Energy Week in Lagos, NMDPRA’s Authority Chief Executive, Mr Ahmed Farouk, highlighted the agency’s partnership with industry stakeholders to build a robust framework for CNG expansion. Themed “Alliances for Growth,” this year’s OTL conference underscores collaboration as essential to industry growth and sustainability.
“While CNG remains in its infancy within Nigeria, our commitment is to foster its development by simplifying regulations and enforcing safety protocols to support market maturity,” Farouk stated. He reiterated NMDPRA’s focus on aligning with the government’s goals under the Petroleum Industry Act (PIA), emphasising the authority’s unwavering commitment to a secure, thriving CNG sector.
Farouk outlined the NMDPRA’s strategy to enhance CNG adoption by consolidating regulations through extensive engagements with stakeholders. This streamlined approach aims to make compliance more straightforward, ensuring that safety standards are maintained across the sector.
“The NMDPRA aims to position CNG as a viable, alternative fuel, aligning with broader initiatives like the Decade of Gas and the Pi-CNG programme,” he added. He noted that the agency’s commitment to expanding CNG infrastructure is pivotal for energy security and advancing Nigeria’s transition to cleaner energy sources.
Farouk also highlighted plans to create a unified gas transportation code to facilitate the movement of natural gas across West Africa, enhancing regional cooperation and contributing to energy security within the sub-region.
The OTL conference, Farouk noted, serves as an influential platform for discussing and advancing sustainable energy strategies. “Insights from this summit will be invaluable to the sector’s development, driving forward the policies needed for sustainable energy practices,” he said.
In his remarks, Mr Huub Stokman, Chairman of the Major Energy Markets Association of Nigeria (MEMAN), emphasised cost-efficiency in Nigeria’s fully deregulated downstream oil market. Stokman advocated for collaborations with the Nigerian Association of Road Transport Owners (NARTO) to tackle logistical issues, including tanker-related accidents, underscoring that partnerships should prioritise economic sustainability, workforce development, and targeted investment.
As Nigeria looks to solidify its energy security and sustainability agenda, NMDPRA’s initiatives mark a significant step toward establishing a compliant, robust CNG market. These efforts will ensure Nigeria’s energy sector is poised to meet both domestic and global demands, aligning with broader national aspirations for economic growth and environmental responsibility.