The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has urged the private sector to inject between $30 billion and $50 billion into Nigeria’s midstream petroleum sector, citing the removal of fuel subsidies as a key factor in revitalising investment opportunities.
Chief Executive Saidu Mohammed announced a three-day tour of facilities in Rivers State, including a visit to Aradel Holding Plc. Mohammed emphasised that future growth in the midstream sector would rely entirely on private investment, with the government focused on creating enabling conditions for investors.
“Two days ago, I said the midstream sector alone will require about $30 billion to $50 billion in investment. These investments can only come from the private sector, not the government,” Mohammed said. He added that the authority would ensure regulatory frameworks and operational standards are in place to attract these investments.
Mohammed commended Aradel for demonstrating that Nigerians can design, build, fund, and operate world-class integrated petroleum facilities. The company has sent gas to NLNG for over 13 years, built an 11,000-barrel-per-day refinery, and developed a virtual pipeline supplying compressed natural gas across Nigeria.
Highlighting the need for more refineries, the NMDPRA chief said Nigeria has enough market demand for petroleum products and gas, and stressed the importance of a clean and competitive energy supply. “Affordable energy comes from an ample supply, which is driven by competition. The removal of subsidies has propelled the private sector to participate, and we will continue to build on that,” he added.
Aradel’s Managing Director, Adegbite Falade, welcomed the visit, noting that the company is committed to expanding its operations and meeting Nigeria’s growing energy demand. “It is a great and worthy space for fellow investors. The more we are, the more we build on the redundancy and resilience of our energy security as a nation,” he said.
Meanwhile, Shell Plc’s Chief Executive, Wael Sawan, praised the Tinubu administration for creating a stable investment climate. Shell is preparing to invest an additional $20 billion in Nigeria, primarily for the Bonga South West deep offshore project, citing robust leadership and incremental incentives provided by the government.
Shell’s planned investments complement recent projects such as $5 billion in Bonga North, $2 billion in HI, and gas projects to NLNG. Sawan described the investment environment under President Tinubu as a “sea change” compared to previous years, noting the administration’s commitment to long-term stability and local content development.
President Tinubu has approved gazetted, investment-linked incentives to support Shell’s Bonga South West project. The incentives are targeted, ring-fenced, and tied to new capital, incremental production, local content delivery, and in-country value addition.
The NMDPRA chief said the overarching goal is to have the entire petroleum value chain operated by Nigerians, supporting energy security, affordable supply, and industrial growth across the country.
