… cautions on gas plants in populated areas, pushes for piped gas infrastructure, strict licensing compliance

Oredola Adeola

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced plans to clamp down on unlicensed Liquefied Petroleum Gas (LPG) retailers who operate with multiple 50kg cylinders without meeting safety requirements.

The Authority emphasised that it is collaborating with security agencies to enforce compliance, curb the spread of unsafe facilities, and prevent potential hazards.

Mr. Ogbugo Ukoha, Executive Director of the Distribution Systems, Storage and Retailing Infrastructure (DSSRI) at NMDPRA, made the call while speaking through his representative, Kelechi, during a panel session at the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) 2025 National LPG Conference & Exhibition in Lagos.

The session focused on “Infrastructure Development for LPG Growth: Challenges and Opportunities in Storage, Logistics, and Supply Chain.”

According to him, apart from the chaotic environments where some retailers operate, many lack proper exit routes in the event of a fire incident at their stations.

He said, “A lot of LPG retailers in different parts of the country do not even have the appropriate licenses required to operate.

“They operate in chaotic environments without proper safety measures, leaving no escape routes in the event of a fire.

“Under the NMDPRA regulations, those in Category E are retail operators, and to sell petroleum products in any volume, they are mandated to hold a valid retail license,” he said.

Advisors Reports gathered that to legally operate a petroleum retail outlet in Nigeria, the operator must obtain a Retail Outlet Monitoring (ROM) license under Category E from NMDPRA, which includes compliance with safety, environmental, and operational standards.

Meanwhile, Ukoha further explained that the Authority has always reminded marketers and operators of refilling plants that the responsibility of educating both consumers and these so-called retailers rests on them.

He said, “If they must sell to bulk buyers, those buyers must present a valid NMDPRA license.

“Retailing without licenses is a serious hazard waiting to happen.

“Some of these operators handle multiple 50kg cylinders without adhering to safety standards.

“We are therefore working closely with security agencies to enforce compliance and reduce the spread of such unsafe facilities, ” the NMDPRA ED, DSSRI noted.

He further explained that it is unfair when unlicensed individuals set up shops, obtain products, and operate without regulation, insisting that such an act undermines the market and poses grave risks.

“Whenever we identify such cases, we will ensure that those operating without valid licenses are arrested and prosecuted,” Ukoha assured.

Speaking on the prevalence of unlicensed gas plants across major Nigerian cities, NMDPRA ED, DSSRI assured that such facilities will be dismantled under a safe decommissioning process.

According to Ukoha, the procedure usually takes about seven days and involves reducing the stored product to safe levels before removal.

Addressing the concentration of gas plants in densely populated areas, the NMDPRA emphasized that such facilities should be seen as temporary stopgap solutions, with the long-term focus on expanding piped gas infrastructure to homes and facilities, as not every environment requires a gas plant.

The ED, DSSRI of NMDPRA, further noted that licensing requirements for operators are multifaceted and must be strictly complied with.