NIPCO Gas Ltd. is strengthening its position in Nigeria’s energy sector by expanding its gas distribution network across key economic hubs, including Ibadan, Benin City, and the Lekki Free Trade Zone. This strategic move is aimed at enhancing domestic gas usage and creating new opportunities within the country’s energy landscape.
The company’s expansion follows the award of Gas Distribution Licenses (GDL) by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), further cementing NIPCO’s role as one of the nation’s leading indigenous gas distributors.
According to Nagendra Verma, Managing Director and CEO of NIPCO Gas Ltd., the company has secured exclusive 25-year licenses to develop and operate gas distribution networks in Ibadan Axis (in partnership with NNPC Gas Marketing Limited), Benin City (operated solely by NIPCO Gas), Lekki Free Trade Zone (in partnership with NGML) and Kara-Sagamu-Abeokuta-Ibadan Axis (in collaboration with NGML).
Verma emphasized that the exclusivity of these licenses ensures efficiency, prevents infrastructure duplication, and optimizes national resources.
As part of its commitment to cleaner and more sustainable energy solutions, NIPCO Gas is actively promoting Compressed Natural Gas (CNG) as a cost-effective alternative to traditional fuels. The company, in collaboration with NNPC Limited and the Presidential CNG Initiative (PCNGI), has successfully converted 15,000 vehicles to run on CNG.
To further accelerate CNG adoption, NIPCO has commissioned multiple CNG stations across Abuja, Lagos, Edo, Delta, Ogun, Oyo, Kogi, and Akwa Ibom States. Additionally, the company recently signed an agreement with the Delta State Government to construct a CNG station and conversion workshop in Asaba, with the state government providing land for the project. This initiative emphasizes the importance of public-private partnerships in advancing Nigeria’s energy transition.
Despite significant progress, NIPCO Gas faces key industry challenges, including the need for a more streamlined regulatory approval process to expedite CNG infrastructure expansion. Verma commended President Bola Ahmed Tinubu’s administration for its efforts in addressing industry bottlenecks and fostering a supportive regulatory environment.
NIPCO Gas is focused on establishing additional CNG refueling stations nationwide, expanding pipeline infrastructure and storage facilities, strengthening collaborations with local and international suppliers to reduce the cost of CNG conversion kits and enhancing public awareness on the safety and economic benefits of CNG.
Verma stated once more NIPCO Gas Ltd.’s commitment to supporting Nigeria’s Renewed Hope Agenda, which prioritizes the use of indigenous natural gas to drive economic growth and energy sustainability. He also called on the media and key stakeholders to continue advocating for CNG adoption, emphasizing that with the right policies and infrastructure, CNG has the potential to transform Nigeria’s energy landscape.
“With the right policies and infrastructure, CNG can play a transformative role in Nigeria’s energy mix,” Verma stated. “We remain committed to driving this change and look forward to working with all stakeholders to achieve our shared vision.”
