The Federal Government plans to end regulated pricing in Nigeria’s domestic gas market by September 24, 2028, with the Nigerian Midstream and Downstream Petroleum Regulatory Authority targeting a fully established willing-buyer, willing-seller framework.
The NMDPRA Chief Executive, Rabiu Umar, disclosed this on Thursday at the Gas Market Maturity Workshop organised under the Decade of Gas initiative at the Petroleum Technology Development Fund in Abuja.
Umar said the transition would be based on measurable indicators showing that different segments of the gas market had attained the required level of maturity, in line with the Petroleum Industry Act.
He said the authority was targeting a 24-month period to establish the conditions required to move the market from one largely coordinated through regulation to one driven increasingly by commercial contracts between willing buyers and sellers.
According to him, the indicators would include gas supply availability and diversity, the number and quality of buyers and sellers, access to transportation infrastructure, contract strength, payment reliability, delivery obligations, market information and credible price signals.
Umar, however, said domestic gas supply remained tight despite Nigeria’s vast gas resources, stressing that infrastructure development must be matched by sufficient gas to utilise the facilities.
“The focus right now is not just delivering the infrastructure, but ensuring that we have enough molecules to fill the pipeline,” he said.
He specifically cited the Ajaokuta-Kaduna-Kano pipeline, saying major infrastructure projects must have sufficient gas supply to make them commercially useful.
The NMDPRA boss also disclosed that the authority had commenced consultations on draft regulations on anti-competitive practices to strengthen enforcement of the competition provisions of the PIA.
He said different segments of the gas market were at varying stages of development and would therefore require a carefully sequenced transition, with specific thresholds and safeguards before liberalisation.
Umar further disclosed that the authority was nearing the completion of its gas distribution licensing process, with qualified companies expected to receive licences in the fourth quarter of 2026.
He said the authority was also working to increase domestic utilisation of LPG, LNG and CNG, as well as support LNG and gas-to-power projects across the country.
Also speaking, the Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, said Nigeria could achieve a willing-buyer, willing-seller gas market before the end of the programme’s first horizon in 2030.
Ubong said Nigeria was targeting gas supply of 12.6 billion cubic feet per day by 2030, supported by 16 key infrastructure projects and more than 60 demand-side projects capable of generating about 15 billion cubic feet per day in gas demand.
The President of the Nigerian Gas Association, Yetunde Taiwo, said the transition must be guided by clear and measurable milestones.
Taiwo called for stronger collaboration among government, regulators and industry to establish predictable rules, attract investment and ensure reliable gas supply to industries, businesses and consumers.
