NMDPRA Supports Africa Energy Bank to Bridge Energy Financing Gap
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has thrown its weight behind the establishment of the Africa Energy Bank, a move it describes as critical to addressing the deficit in financing vital energy projects across the continent.
Speaking at the inaugural meeting of the Petroleum Industry Stakeholders’ Forum (PISF) in Abuja, NMDPRA Authority Chief Executive, Farouk A. Ahmed, described the initiative as a potential game changer for enabling investments in critical energy infrastructure.
“The establishment of the Africa Energy Bank offers an opportunity for Nigeria to position itself as Africa’s energy hub, providing competitive financing and a favorable regulatory environment,” Ahmed said.
Progress in Nigeria’s Energy Sector
During his address, Ahmed outlined the NMDPRA’s support for the Decade of Gas Program, which aims to unlock Nigeria’s natural gas resources for industrialization. He highlighted the agency’s role in promoting gas development, consumer protection, and fostering a competitive energy market.
Ahmed also emphasized that the NMDPRA has implemented a gas pricing regime to boost gas supply, infrastructure, and utilization projects in line with the Petroleum Industry Act (PIA).
“We have enacted 20 regulations to implement PIA provisions, reviewed the Gas Transportation Network Code for improved access to natural gas, and operationalized the Midstream and Downstream Gas Infrastructure Fund (MDGIF) to catalyze investments,” he said.
Commitment to Transparency and Collaboration
Ahmed reiterated the agency’s focus on transparency and efficiency, citing the automation of regulatory processes and enhanced inter-agency collaborations. The NMDPRA works with security agencies such as the Nigerian Navy, DSS, and Customs Service to curb petroleum product diversion and smuggling. It also partners with organizations like the Standards Organisation of Nigeria (SON) and the National Automotive Design and Development Council (NADDC) to promote the growth of compressed natural gas (CNG) infrastructure safely and sustainably.
“By upgrading laboratories, automating processes, and enhancing inter-agency collaborations, we are consolidating our successes to ensure better regulatory oversight in 2025,” Ahmed said.
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Strengthening the Petroleum Industry
Ahmed highlighted steps taken to stabilize Nigeria’s petroleum market, including full deregulation of petroleum product prices, which has fostered competition, encouraged investment, and ensured a steady supply of petroleum products nationwide.
“The full price deregulation of the petroleum products market has created a level playing field, fostering healthy competition and enabling investment opportunities. For the first time in years, Nigeria experienced end-of-year festivities and the New Year without supply disruptions or fuel queues,” Ahmed noted.
Boosting Regional Collaboration and Refining Capacity
To further develop the West African refined fuel market, the NMDPRA is collaborating with S&P Global Commodity Insights to organize a workshop that will facilitate regional partnerships, policy formulation, and transparent pricing mechanisms.
Ahmed also pointed to the re-emergence of Nigeria as a refining hub, with the Dangote Refinery and NNPCL refineries ramping up production, alongside increasing capacity at modular refineries.
“With these advancements, Nigeria is on track to become a net exporter of all petroleum products,” he said.
The NMDPRA’s support for the Africa Energy Bank aligns with its mission to drive sustainable growth and investment in Nigeria’s energy sector while positioning the country as a leader in Africa’s energy transition.
