The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has officially dismissed claims of a subsidy in the country’s oil and gas sector, asserting that the market operates on a fully deregulated basis. The clarification comes as recent increases in the price of Compressed Natural Gas (CNG) have raised public concerns and led to long queues at refilling stations.
George Ene-Ita, the Director of Public Affairs at the NMDPRA, made the statement in Abuja on Friday, responding to widespread reports suggesting that the Federal Government had either reintroduced subsidies or directly increased the price of CNG. “What we have is a baseline price for our gas resources, including CNG, as dictated by the Petroleum Industry Act,” Ene-Ita explained, confirming that any price adjustments within this framework are considered legitimate market activities.
The NMDPRA’s position aligns with the Presidential Initiative on Compressed Natural Gas (P-CNGi), which also stated that no directive had been issued by the Federal Government to alter CNG pump prices. The P-CNGi emphasized that the recent price hikes, which saw rates jump from ₦230 to ₦380 per Standard Cubic Metre in Abuja, were “purely private-sector decisions.”
Industry observers have attributed the price surge to existing infrastructure deficits that continue to hamper distribution, particularly in major cities like Abuja and Lagos. These logistical challenges have led to product scarcity and the long queues observed at filling stations.
Both the NMDPRA and P-CNGi reiterated their commitment to driving the growth of Nigeria’s CNG mobility market. The initiative, spearheaded by President Bola Tinubu, aims to promote the adoption of CNG as a more cost-effective, cleaner, and sustainable alternative to traditional petrol and diese
