KEY POINTS
- The National Mass Transit Company issues gas licenses to power generating companies so they maintain continuous fuel delivery.
- The initiative serves two critical functions by stopping power network breakdowns and improving power delivery reliability.
- NMDPRA will nullify offtaking licenses if operators do not follow regulations or conduct sabotage activities.
Qualified players in the sector now receive gas licenses from the Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA because of frequent power grid breakdowns throughout the nation.
The national distribution grid ended 2024 with 10 outages followed by one blackout in 2025 that left substantial parts of the nation without power for extended periods.
Through an official statement released Monday by NMDPRA spokesperson Jemilah Adama the gas license program supports President Bola Tinubu’s objective for continuous gas delivery to power generation facilities.
The initiative focuses on developing a stronger distribution grid across the country to stop continuing power outages.
Warning against sabotage
The NMDPRA warned gas offtakers about license revocation for non-compliance which involved failing to supply gas to generation companies.
Stakeholders must work together to maintain a solid and dependable power grid according to a warning issued by the organization.
The initiative works within a broader plan to solve Nigeria’s power sector problems by increasing production capacity while stabilizing power grid operation with continuous gas delivery to power generation centers.
