The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, has announced the Federal Government’s efforts to accelerate the growth of critical gas infrastructure in Nigeria to provide an alternative source of energy.
He made this statement during the ongoing Energy/Labour Summit organized by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) in Abuja with the theme: “Petroleum downstream deregulation and gas utilization.”
Ahmed revealed that the agency has signed a Memorandum of Understanding (MoU) with a local company to supply approximately 1,000 Compressed Natural Gas (CNG) buses for mass transit. The NMDPRA has also issued a wholesale gas supply license to a local company as part of its commitment to provide an alternative source of energy for Nigerians. Additionally, the agency is reviewing new gas supply projects and implementing programs such as auto gas and domestic Liquefied Petroleum Gas (LPG) to promote the use of gas for cleaner and more affordable energy sources.
He emphasized the importance of cost-reflective pricing and tariff mechanisms to encourage investment in gas production and supply. Ensuring that domestic gas market prices are competitive with international markets is vital for attracting investments in the gas sector.
The President of PENGASSAN, Festus Osifo, highlighted the labor movement’s stance on deregulation and called for government action in providing palliatives and improving transportation systems. He also suggested reducing the cost of governance and aligning worker salaries with international currency exchange rates, citing a model used in Angola where worker salaries are fixed in dollars and paid in the equivalent local currency.
