NMDPRA calls for over $30bn private investment in midstream sector

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has urged the private sector to invest between $30 billion and $50 billion in Nigeria’s midstream petroleum sector to drive growth and ensure energy security.

The Chief Executive of NMDPRA, Saidu Mohammed, made the call at the weekend after concluding a three-day inspection tour of oil and gas facilities in Rivers State. He said the sector could no longer rely on government funding and must attract large-scale private investments.

“The midstream sector alone requires about $30bn to $50bn in investment, and that can only come from the private sector, not government,” Mohammed said. He added that NMDPRA’s role was to create the right regulatory environment to attract the needed capital.

Mohammed attributed renewed investor confidence in the sector to President Bola Ahmed Tinubu’s decision to remove fuel subsidies, describing the move as a major catalyst for growth.

He praised Aradel Holdings Plc for operating a fully integrated, Nigerian-owned energy facility, noting that the company’s operations showed that local firms could design, finance and run world-class infrastructure.

According to him, Aradel has supplied gas to Nigeria Liquefied Natural Gas (NLNG) for about 13 years, operates an 11,000-barrels-per-day refinery, and runs a virtual gas pipeline that distributes compressed natural gas to several parts of the country.

Mohammed stressed the need for more refineries and gas processing facilities to meet domestic demand and support exports to Africa, Europe and the United States. He also called for greater conversion of gas into value-added products such as Liquefied Petroleum Gas (LPG), with the aim of having the entire petroleum value chain driven by Nigerian operators.

He said Nigeria was moving closer to affordable energy, noting that increased supply and competition had already led to price reductions, particularly in petrol.

“As supply increases, prices come down. Competition has pushed petrol prices from over ₦1,000 to about ₦800 per litre,” he said, adding that a subsidy-free market would guarantee adequate supply and affordable pricing.

In his remarks, the Managing Director and Chief Executive Officer of Aradel Holdings Plc, Adegbite Falade, described the NMDPRA visit as a strong boost for operators. He said the company was committed to expanding capacity to meet growing demand and strengthening Nigeria’s energy security.

“This is a viable and attractive space for investors. The more participants we have, the stronger and more resilient our energy system becomes,” Falade said, adding that Aradel would continue to scale up operations as part of the long-term solution to Nigeria’s energy needs.