The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) CEO, Ahmed Farouk, revealed that the Africa Energy Bank, a forthcoming continental lender, is set to begin operations soon. Speaking at the 18th Oil Trading and Logistics (OTL) conference in Lagos, Farouk detailed that the Bank aims to fund critical energy infrastructure across Africa, offering much-needed resources for sustainable energy growth.
The Africa Energy Bank is a collaboration with the African Petroleum Producers’ Organisation (APPO) and the African Export-Import Bank. According to APPO, the Bank will potentially begin by early 2025, providing funding alternatives to African oil producers who face restrictions from Western financiers pulling away from fossil fuel investments. Farouk noted, “This initiative represents a major step in Africa’s journey toward a sustainable, equitable energy transition.”
NMDPRA’s broader initiatives also target domestic energy expansion. The Authority has granted several licenses for modular refineries, including the operational Dangote Petroleum Refinery, which commenced petrol production in September 2024. This expansion will help secure Nigeria’s fuel independence while enhancing gas transportation, processing, and distribution capacities. Farouk also spoke on the need for regional cooperation, with efforts underway to establish a Pan-African Energy Regulators association to streamline cross-border energy trade and best practices.
In the CNG sector, NMDPRA is advocating for compressed natural gas (CNG) as a more sustainable alternative to petrol, with numerous interventions accelerating the deployment of CNG infrastructure. Farouk highlighted the “Decade of Gas Program” and the Pi-CNG as primary drivers of Nigeria’s push toward a cleaner, more affordable energy alternative, stating, “We’re committed to making CNG accessible at most retail outlets nationwide.”
To support these initiatives, NMDPRA is actively engaging with stakeholders on both domestic and global levels. The agency will continue quarterly stakeholder sessions, collaboration with local energy associations like the Major Energy Marketers Association of Nigeria (MEMAN), and regulatory measures to ensure operational safety across Nigeria’s midstream and downstream sectors.
Through these developments, NMDPRA aims to support a fully liberalized petroleum and gas market, ultimately contributing to economic stability and investment opportunities across Nigeria’s energy sector.
