Uche Cecil Izuora
With the size of her midstream oil and gas sector, Nigeria is forecasting a generation of about $50 billion daily from the sector.
However, this requires massive investment and creation of investing climate through effective regulation.
The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Saidu Mohammed, who made the projections said Nigeria must earn between $30 billion and $50 billion daily from the midstream sector to sustain its ambition of becoming a global hub for oil, gas and value-added products.
Mohammed, believed this is achievable after operational visit to midstream and downstream facilities in Port Harcourt, in line with the provisions of the Petroleum Industry Act (PIA), 2021.
Speaking after inspecting the Indorama Eleme Fertilizer and Chemical Limited facility in Rivers State, he described the midstream segment of the oil and gas industry as a critical area requiring massive investment.
He commended Indorama for its significant contribution to Nigeria’s industrial growth, noting that its operations reflect the type of value addition the country needs to fully maximise its hydrocarbon resources.
“What we have seen in Indorama is a manifestation of what Nigeria needs to have. We need more of this in the midstream sector—fertiliser plants and other value-added industries that can drive national development,” Mohammed said.
He stressed that Nigeria has no justification for importing products such as fertiliser and urea, given its vast natural gas resources, adding that recent expansions at Indorama and other facilities, including Dangote Fertilizer, could position Nigeria as a major urea-exporting country within the next 24 months.
Mohammed explained that the visit was aimed at assessing the operational status of critical midstream and downstream infrastructure, strengthening regulatory alignment with licensees, and engaging investors to ensure optimal regulatory support for their businesses.
He also noted that the Authority is focused on improving regulatory excellence in the South-South region and promoting health, safety and operational efficiency across the sector.
In his remarks, the Chief Executive Officer of Indorama Eleme Fertilizer and Chemical Limited, Mr. Munish Jindal, welcomed the NMDPRA delegation and highlighted the company’s achievements since commencing operations in Rivers State.
Jindal acknowledged past regulatory challenges but praised recent improvements, assuring that Indorama would continue to expand its investments and performance in Nigeria.