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NMDPRA Unveils Network Code Revision 2, Targets 30-45 Days Fuel Sufficiency, $50bn Investment to 2030

UGO AMADI

 

The Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Rabiu A. Umar, says Nigeria is moving from importer to regional energy hub, anchored on secure energy and shared prosperity.

 

Delivering his keynote address titled “Secure Energy, Shared Prosperity” at the OTL Africa Downstream Energy Week 2026 at the Oriental Hotel, Lagos, Umar outlined reforms, infrastructure progress and a roadmap for regional market convergence.

 

A major highlight was the launch of Nigerian Gas Transportation Network Code (NGTNC), Network Code Revision 2 , The Code, first introduced in 2020 to provide open-access framework for gas transmission and revised in 2024, now delivers open, non-discriminatory access to the gas network, cost-reflective transparent transport tariffs, 30% lower imbalance on the Western Network in H1 2026, and better measurement at entry and exit points.

 

NGTNC is a set of rules that govern the activities of participants in open access gas transportation.

NGTNC revision II incorporated 28 amendments including 4 critical changes on Daily Reserved Pipeline Capacity Variation, Communication Protocol, Measurement Loss Factor, & Balancing Neutrality Charges

These crucial additions provide more flexibility to commercial agreements, promote coordinated efforts amongst stakeholders in the wake of Network disruption, standardise measurement for tighter revenue accruals, and support transparent transactions in system trade.

 

 

Umar said major gas pipelines are nearing completion and will be game-changing. As at September 2026, OB3 is 96% complete, ELPS midline compressor 97%, Ajaokuta-Kaduna-Kano (AKK) 84%, Odidi-Warri expansion 78%, and Escravos-Odidi 30%. Once AKK and OB3 add 2.0 Bcf/d to the existing 2.2 Bcf/d ELPS line, total gas transport capacity will hit 4.2 Bcf/d, linking southern supply to northern demand.

 

 

On gas utilization, he said of 8.394 Bcf/d processed, 62% went to midstream and downstream while 38% was upstream use and flare. Breakdown shows 2.066 Bcf/d to domestic market, 2.760 Bcf/d to NLNG, 0.279 Bcf/d to EGTL and 0.134 Bcf/d to WAGP exports to West Africa. LPG demand is up 33% above benchmark, with consumption at 5.2 KT/D now outstripping supply of 4.7 KT/D, underscoring gas as Africa’s transition fuel for flare-gas commercialisation, LPG for clean cooking and CNG for mobility.On energy security, Umar disclosed days of stock as at September 2026: Aviation fuel 53.2 days and diesel 49.7 days — both above the 30-day threshold — while petrol at 23.9 days and LPG at 15.9 days remain below target.

 

He noted 38.7 million litres per day of petrol supplied against 44.4 million litres consumed, with the gap met from stocks, while feedstock has been secured through the Domestic Crude Supply Obligation and Naira-for-Crude.

 

He listed recent achievements for fairer markets and safer products to include an MoU with FCCPC for coordinated enforcement and consumer protection, draft Anti-competition Regulations 2026 following consultation on September 22, field quality testing in Port Harcourt, a Tripartite MoU with Bureau Veritas and Ace Energy and Power Solutions for a National Reference Laboratory to ISO standards, with Port Harcourt lab upgraded and nine others being modernised, and gridding of the country to expand Gas Distribution Licences (GDLs).

 

For investment opportunity to 2030, Nigeria holds 215 Tcf of gas — Africa’s largest — and 37 billion barrels of crude, with only about 52% of 16.2 Bcf/d installed gas processing capacity utilized. Umar said US$30-50 billion fresh oil and gas investment is needed in processing, fertiliser, LPG and flare gas.

 

He said that capacity projections show NLNG rising from 22 to 30 MMTPA with Train 7, Indorama fertiliser Train 4 from 4.38 to 5.84 MMTPA, LPG market from 1.8 to 4.0 MMTPA, and gas transport from 2.2 to 4.2 Bcf/d. Product logistics including depots, jetties, coastal shipping and product pipeline revival are open to PPP.

 

Looking to 2030, NMDPRA proposed regulatory convergence for Africa: Align 2026-2027 — enforce ECOWAS 50 ppm fuel standard, regional data-sharing protocol and joint border quality checks; Integrate 2028-2029 — mutual recognition of licences, common cross-border pipeline and storage codes, AfCFTA rules for refined products; Secure 2030 — coordinated regional strategic stocks, pathway to 10 ppm AFRI-6 fuels and a credible West African reference price.“Convergence, not uniformity: each country keeps the right to secure supply to its own citizens,” Umar stressed.

 

 

He listed five commitments of the Authority: 30-45 days sufficiency and National Strategic Stock; reliable feedstock via DCSO and Naira-for-Crude; infrastructure via PPP and MDGIF; predictable, efficient licensing and competition; and monthly public market data, all delivered through Project NEXUS: a firm, fair and fast regulator.

 

He called on refiners to prioritise the domestic market, marketers and logistics firms to invest in storage and fair dealing, financiers to back infrastructure, communities and security agencies to protect assets, and African partners to converge rules to build one market — turning “Made in Nigeria” into “secured for Africa.”

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