NIPCO expands gas distribution in Ibadan, Benin, Lekki, industrial clusters

…Converts 15,000 vehicles to CNG compliant

NIPCO Gas Ltd. has announced the expansion of its gas distribution network across key economic clusters in Ibadan, Benin City, and the Lekki Free Trade Zone. This move aims to expand opportunities and deepen domestic gas use across the country.

This expansion follows the award of Gas Distribution Licenses (GDL) by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), solidifying NIPCO’s position as one of Nigeria’s largest indigenous licensed gas distribution company.

According to Nagendra Verma, managing director and CEO of NIPCO Gas Ltd, NIPCO Gas Ltd secured exclusive 25-year licenses to operate gas distribution networks in key areas, including the Ibadan Axis (in collaboration with NNPC Gas Marketing Limited), Benin City (operated solely by NIPCO Gas), the Lekki Free Trade Zone (in partnership with NGML), and the Kara-Sagamu-Abeokuta-Ibadan Axis (also in collaboration with NGML), as part of its expansion plans.

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He said, “The exclusivity period of 25 years granted under these licences prevents infrastructure duplication, ensuring efficiency and national resource optimisation.

Verma noted that the company’s strategic partnerships with NNPC Limited and the Presidential CNG Initiative (PCNGI) aim to drive the adoption of Compressed Natural Gas (CNG) as a cleaner, more affordable, and sustainable energy alternative.

He emphasised that the licenses underscore NIPCO’s pioneering role in the sub-sector and reflect growing investor confidence in Nigeria’s gas industry.

These licenses are expected to prevent infrastructure duplication, optimize national resources, and enhance efficiency in gas distribution.

Converts 15,000 vehicles

Nipco also announced the conversion of 15,000 vehicles to run on Compressed Natural Gas, adding that the firm has also received Gas Distribution Licences from the Federal Government.

The company has commissioned several CNG stations in Abuja, Lagos, Edo, Delta, Ogun, Oyo, Kogi, and Akwa Ibom states.

NIPCO Gas also recently signed an agreement with the Delta State Government to construct a CNG station and conversion workshop in Asaba.

The state government has provided land for the facility, marking a proactive step in fostering public-private partnerships. Verma expressed optimism that such collaborations would accelerate the Presidential CNG Initiative and expand CNG accessibility nationwide.

Driving CNG Adoption

NIPCO Gas is actively working with PCNGI to increase the availability of CNG conversion kits and workshops. By partnering with local and international suppliers, the company aims to make conversion kits more affordable and efficient. Verma stressed the importance of public education on the benefits and safety of CNG, calling on the media to play a pivotal role in disseminating this information.

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Challenges

Despite its achievements, NIPCO Gas faces challenges, including the need for a more streamlined regulatory approval process to fast-track CNG infrastructure expansion. Verma commended the efforts of President Bola Ahmed Tinubu’s administration in easing industry bottlenecks and providing a supportive policy framework.

Looking ahead, NIPCO Gas plans to launch additional CNG stations nationwide and enhance infrastructure such as pipelines and storage facilities. The company’s strategic vision aligns with the Federal Government’s Renewed Hope Agenda, which prioritizes the use of indigenous natural gas to drive economic growth and energy sustainability.

Verma concluded his address by reiterating NIPCO Gas Ltd’s commitment to advancing the nationwide shift to gas as a primary fuel alternative. He expressed gratitude to the media for their support in amplifying the company’s efforts and called for continued collaboration to shape the future of Nigeria’s energy sector.

“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.”