Energy
NALPGAM Blames Terminal Operators For Gas Price Hike
The incessant hike being experienced in the price of gas has been traced to terminal operators.
The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) made the claim on Monday in Abuja, before the Senate in the hallowed chambers of the National Assembly.
NALPGAM members, led by President, Oladapo Olatunbosun opined that terminal operators were manipulating supplies to influence supplies and pricing.
According to them, whereas the Nigeria Natural Liquefied Gas has been consistent with its supply, the cabals have disrupted the availability of gas to Nigerians.
Olatunbosun described some of the terminal operators as the cabals who bought the product cheaply from the source and sold at a very high price to them.
He said, “The cabals are making it difficult for the average Nigerian to have access to gas. As of today, gas is sold by these terminal owners for N16.8 million for 20 metric tonnes whereas NNLG sells to them for a little bit less than N9 million.
“Some of them are NAVGas, NIPCO PLC, Matrix Energy Ltd, Prudent Energy Ltd, Shafa Energy, Techno Gas, StockGap Ltd, Mobil, Pan Ocean Limited, NNPC, OLogbo, NSPC Apapa, SHELL, Dozzy LPG terminal.”
On the economic and lifestyle implications, he lamented the untold hardship the activities of the cabals were bringing upon Nigerians.
“When people go to fill their gas today, the least they get is N1,200 per kilogramme – imagine the pains of Nigerians. In the Nigeria of today, can a student or menial worker afford to cook a cup of beans with a N1,200 cost of gas?” he asked.
This should not be, he maintained.
Olatunbosun noted, “Even countries like Cote d’Ivoire, Ghana and the rest are no match to Nigerians in terms of gas production but the prices of gas is cheaper in those countries that here where we are the second largest producer of the gas in Africa after Algeria, yet our people cannot afford to cook with gas.
“We produce gas more than we import. In fact, the proportion imported is so insignificant, but these cabals have refused to allow Nigerians to enjoy the dividends of this production and the efforts put in by the government.”
They alleged that the terminal operators usually hid under forex as one of the reasons for the increase in the prices of gas whereas the transactions were done purely in naira.
The President of the association explained, “These cabals have also made the practice of hiding behind forex but the question is does NNLG get paid in dollars? No. All the transactions are completed in naira. What is the role of forex in this situation? Where is the import evidence?
“You buy gas for N9 million from NNLG and pay in naira, then you sell the same gas for N16 million and blackmail the government.
“When people get to our plants and we tell them the price, they start weeping and cursing the government whereas, the government has done their best to make life bearable to the people.”
The NALPGAM cautioned that if measures were not taken to adequately address these issues, by December, 12,5kg gas would be selling for N25,000.
Olatunbosun added, “If we don’t rise up and checkmate the whole thing, the gas would become a luxurious product available to only the rich.
“By December, these cabals might start to sell 20 metric tonnes for N200 million. This would mean that gas will sell for 2,000 per kg and N25,000 for 12.5kg.”
The marketers further lamented that the utilization level in Nigeria was quite low due to poverty and other factors.
“We are operating 1.2 million metric tonnes per annum but if we look at our population, we ought to be operating around 6 to 7m metric tonnes per annum but due to availability and affordability; we can’t operate at that level yet.
“And when gas prices went up, the level of consumption dropped, at the moment, the level of usage is between 750,000 to 900,000 metric tonnes per annum.
“And our forest will suffer for it, people will go into the deforestation to get wood and charcoals to cook,” he pointed out.
Olatunbosun noted, “This is the kind of hardship that the few cabals have subjected poor Nigerians to which is worrisome particularly because it would continue to sell the wrong perception of this administration to Nigerians as not doing anything for the public.
“The problem is that there is no regulation, NNLG is aware of all these but they have refused to interfere in the issue.
“It seems like the voiceless have no one to defend them, hence the reason why we have come to the Senate to cry out for help for the poor Nigerians.”
Chairman, Senate Committee on Gas, Sen Jarigbe Jarigbe, assured the marketers that the Senate would not let the issue slide.
Ge described it as a very important national issue, to which attention must paid.
Senator Jarigbe said, “I have listened to you on behalf of the committee and the Senate.
“You know that this administration has talked about improving gas supply, LPG and there is a new revolution in terms of Compressed National Gas for vehicles to cushion the effect of the Subsidy removal.
“As it concerns your complaints that NLNG sells to the terminal owners for about 10m for 20 metric tonnes and they sell to you the markets with about N7 million margin; which would have a negative multiplier effect in the value chain of that to the final consumer, this is what the Senate will not agree with.
“And I know the executive will not agree with it either because that is not the intention of Mr. President.”
He added, “I want to thank you for your courage because it would have been possible for you to compromise at this stage but you decided to speak up for the common man.
“I would do more than what you have done. When the Senate President on a lighter note said Nigerians have to ‘breathe’, it doesn’t mean for the very poor, it’s for Nigerians.
“We must allow ourselves to breathe, there is nobody that is not using gas today except those in the interior villages.
“With the issue of climate change and greenhouse gas emissions, we will do our best as a Senate to support you and support Nigerians because we were voted to represent our people and it is our job to protect them.”
“We promise to match words with action.”
The 31 companies that emerged winners of 37 oil and gas blocks in the 2025 Licensing Round must pay their signature bonuses within the stipulated period or risk losing their provisional awards.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) handed down the warning on Sunday, one month after it hosted the commercial bid conference in Abuja, where the successful companies emerged as winners of the available blocks.
The NUPRC said the process of compliance with the payment of signature bonuses had commenced following the issuance of provisional awards to the successful bidders.
“Exactly a month ago, the NUPRC hosted the 2025 commercial bid conference in Abuja where 31 companies emerged winners of 37 oil and gas blocks. Having issued the winners with the provisional awards, compliance with the payment of signature bonuses has already begun.
“Winners who fail to pay signature bonuses within the stipulated time frame in line with the Petroleum Industry Act will forfeit their bid guarantee and lose their provisional awards to the reserve bidders,” the NUPRC stated.
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The 37 blocks offered in the licensing round comprise Petroleum Prospecting Licences covering the Niger Delta onshore, shallow water and deep offshore areas, as well as frontier basins.
Among the blocks are PPL 2A29 to PPL 2A62 in the Niger Delta, PPL 2010 in the deep offshore, PPL 308 in the Benin Basin, PPL 900 to PPL 903 in the Anambra Basin, PPL 700 in the Chad Basin and PPL 800 and PPL 801 in the Benue Trough.
The commission also published the names of the 31 successful companies and the ranked reserve bidders for each of the 37 blocks.
A total of 143 companies participated in the licensing round, submitting about 200 bids for the 37 blocks. However, 13 of the 50 blocks initially put up for bidding attracted no bids.
Under the Petroleum Industry Act (PIA) and the applicable licensing guidelines, successful bidders are required to pay signature bonuses ranging from $3m to $7m per block.
They are also expected to provide the required guarantees, pay first-year rents and satisfy other post-award conditions within the prescribed period. Failure to meet the requirements will result in the automatic transfer of the affected award to the next-ranked reserve bidder, according to the NUPRC.
The commission’s Chief Executive Officer, Mrs Oritsemeyiwa Eyesan, had earlier urged the successful bidders to make the required payments without delay and commence development of the awarded assets.
The NUPRC urged interested members of the public and stakeholders to visit the 2025 Licensing Round portal for further information on the awards and compliance requirements.
Under the PIA 2021 guidelines, winning bidders are required to pay their signature bonuses within a strict 90-day window. Since provisional award letters were issued immediately following the commercial bid conference on July 21, 2026, it means 30 days have already elapsed, and companies have 60 days left to remit the funds.
This shows that the regulator expects the signature bonuses to be paid on or before October 19, 2026.
If a winning company fails to complete the payment of its statutory signature bonus along with first-year rent within this 90-day window, the company automatically forfeits its bid guarantee. The provisional award will be revoked and immediately reassigned to the designated reserve bidder for the asset.
Chevron Nigeria Limited (CNL), operator of the Nigerian National Petroleum Company Limited and CNL Joint Venture, has stressed the importance of strengthening the regulatory framework in the Nigerian oil and gas industry to enhance growth opportunities.
Chairman and Managing Director of Chevron companies in Nigeria and the Mid Africa Region, Jim Swartz, made this known at the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) Energy and Labour Summit (PEALS) in Abuja on Wednesday August 19, 2026.
Represented by Segun Kuteyi, Director of Operations and Chief Operating Officer, Chevron Nigeria and Mid Africa Region, Jim noted that Nigeria remains one of the world’s most resource-rich energy nations, with substantial oil reserves, abundant natural gas, a strategic location, and a skilled workforce, adding that these strengths position the country for sustained growth and competitiveness in a rapidly evolving global energy landscape.
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He remarked that resources alone are not enough to guarantee success and emphasized that what makes the difference is the environment in which investments, businesses, and people operate. “A predictable, transparent, and efficient regulatory framework builds confidence; and confidence attracts investment, drives innovation, creates jobs, and supports economic growth,’ he stated.
Jim emphasized that regulatory certainty could be a catalyst for investor commitments and noted that in Chevron, regulatory reforms in the industry continue to enable its growth opportunities post-Petroleum Industry Act (PIA) 2021, with key drivers being exploration and new discoveries, infill drilling and brownfield optimisation as well as monetisation and integrated developments
According to him, some of the company’s key achievements include the renewal and conversion of its Joint Venture and Deepwater leases; continued investment in exploration, asset and gas development, and monetisation; the recent Chevron’s acquisition of Deepwater block, Petroleum Prospecting License (PPL 2010); equity investments in recent announcements by Shell on Bonga Southwest/Aparo (BSWAP), and ExxonMobil on Owowo/Usan and the sustained social investments and community partnerships for over six decades.
While emphasizing the importance of safety, collaboration and human dimension in the Nigerian oil and gas industry, he stated that the industry challenges could be addressed through strengthening regulatory certainty, advancing transparency and accountability, driving investment across the value chain and promote collaboration across the industry, supporting innovation and digital transformation and building workforce capability and future-ready skills.
“At Chevron, we believe people are our greatest asset. No regulatory framework can fully succeed without a capable, motivated, and protected workforce. That is why forums such as PEALS are important: they bring government, labour, and industry together to align on shared goals and deepen mutual understanding,” he remarked.
Nigeria has mined over 4.6 billion barrels of crude oil from deep offshore assets worth over 5,000 tankers.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), revealed this on Tuesday Live on NTA hosted by Cyril Stober.
The Commission Chief Executive, Oritsemeyiwa Eyesan, represented by the Executive Commissioner, Development and Production of the NUPRC, Engineer Enorense Amadasu, asserted that the achievement was made possible by the Deep Offshore Oil and Gas Project Incentives (Tax Remission) Executive Order (EO) 2026 recently signed by President Bola Ahmed Tinubu.
She added that the EO has the potential not only to unlock $50bn in investments but can also create an additional one million barrels per day of crude oil and condensate from deep offshore fields.
Eyesan explained that the reform establishes a transparent, rules-based investment framework capable of supporting the next generation of deep offshore developments.
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She noted that presently, Nigeria produces about 1.7mbpd of crude oil and condensate but deep offshore accounts for just about 24 percent of total oil production and 19 percent of gas.
Eyesan pointed out that with Field Development Plans (FDPs) running into billions of dollars already approved by the NUPRC, the executive order will encourage IOCs to make quicker Final Investment Decisions (FIDs).
“So, where will these volumes be coming from? Nine of these projects have approved FDPs so the next step expected is the FID in the near to midterm.
The $10bn Bonga South will come in 2027 and within the next four to five years, we are expecting almost an additional one million barrels additional per day,” she stated.
According to Eyesan, the executive order also presents an opportunity for other sectors like the marine economy which will need to expand Nigeria’s logistics/marine base so the country can sustain the volume of deep offshore projects being expected.
“It aims to make Nigeria the regional hub for deep offshore projects,” Eyesan said.
Other benefits of the executive order as explained by CCE include: growth in reserves, technological/skills transfer and new jobs.
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