Nigeria’s domestic gas market recorded a 30 per cent increase in sales between January 2022 and January 2025, reflecting the impact of reforms introduced under the Petroleum Industry Act (PIA) 2021 and subsequent government measures aimed at boosting investment in the sector.
A report by legal and regulatory advisory firm Tope Adebayo LP showed that domestic gas sales rose from 49.3 billion standard cubic feet in January 2022 to 64.2 billion standard cubic feet in January 2025. The firm attributed the growth to improved regulatory clarity, investment incentives, and policies designed to strengthen the gas value chain.
According to the report, Nigeria’s vast gas reserves have long been underutilised due to inadequate infrastructure, limited investment, and persistent gas flaring. However, reforms introduced through the PIA have helped improve oversight, reduce regulatory bottlenecks, and encourage greater participation by investors.
The report highlighted the Domestic Gas Delivery Obligation framework as a key driver of growth, noting that it supports gas supply to strategic sectors such as power generation and manufacturing while imposing penalties for non-compliance.
It also pointed to progress in gas utilisation, modest reductions in gas flaring, and ongoing efforts under the Nigerian Gas Flare Commercialisation Programme to convert wasted gas into economic value.
The analysis noted that government initiatives, including tax incentives, faster project approvals, and more flexible local content requirements, have further improved the investment climate for gas projects.
Despite the gains, the report said major challenges remain, including inadequate infrastructure, payment risks in the power sector, legacy debts, and implementation delays. It stressed that continued investment in pipelines, processing facilities, transportation networks, and distribution systems will be necessary to sustain growth.
The firm added that while the foundation for a stronger domestic gas market has been established, achieving the goals of Nigeria’s Decade of Gas initiative will depend on effective implementation of reforms and sustained policy support.
