The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reached a key milestone last week by awarding its first wholesale gas supply licence to Uhuru Trading Limited, a local firm, allowing it to supply 500 million standard cubic feet of gas per day. 

The regulating agency formally announced this remarkable development via its verified LinkedIn page.

Uhuru Trading Limited was certified by NMDPRA to have obtained this licence, marking history as the first company to apply for and receive such a third-party gas licence. 

The NMDPRA issued this licence to Uhuru Trading Limited in compliance with Section 142 of the Petroleum Industry Act (PIA).

This specific clause regulates the granting of licenses and acts as a blueprint for business activities along the gas value chain. 

Uhuru Trading complied with all conditions before the licence was approved, according to Farouk Ahmed, Chief Executive of NMDPRA.

NMDPRA was praised for its steadfast commitment to successfully executing the PIA and supporting sustainable growth within the Nigerian oil and gas industry during the licence granting ceremony by Honourable Ekperikpe Ekpo, Nigeria’s Minister of State for Gas. 

Farouk Ahmed added that the government’s commitment to luring FDIs and other types of capital infusion into the domestic economy is demonstrated by this licence issuing.

Additionally, it supports the larger objective of raising the standard of living for Nigerians. 

“Pursuant to the above (PIA), we are pleased to inform you today that the authority is undertaking a significant milestone as stipulated in section 142, which states that the authority may upon approval of an application and payment of prescribed fees, grant and issue a Wholesale Gas Supply License to a qualified applicant.  

“In line with the above, Uhuru Trading Limited’s application for the Wholesale Gas Supply License was approved after due consideration and upon fulfilment of the stipulated requirements.  

“The commercial licenses as provided for in the PIA in general and the Wholesale Gas Supply License in particular are significant in many respects as they underscore the focus and priority attention placed on commercial activities in the oil and gas space. 

“We believe that this will encourage prospective applicants to turn in their requests for other commercial licenses introduced by the Act and domiciled with the authority,” he said. 

Uhuru Trading is now authorised to buy natural gas directly from various leases or third-party sources thanks to its third-party gas supply licence.

As a result, they are able to cover every part of Nigeria by selling and distributing wholesale gas to a variety of wholesale clients and natural gas distributors.

With greater flexibility and efficiency, Uhuru Trading is now able to take advantage of a variety of opportunities and contribute to the country’s energy landscape by navigating the complex gas market. 


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