Nigeria plans to move away from regulated domestic gas pricing by September 2028 as the Federal Government works towards a fully commercial gas market where prices are determined by willing buyers and sellers.
The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Rabiu Umar, disclosed this on Thursday at the Gas Market Maturity Workshop held in Abuja under the Decade of Gas initiative.
Umar said the transition would be guided by specific market conditions and safeguards in line with the Petroleum Industry Act, rather than a blanket removal of price controls.
He said the NMDPRA was targeting a 24-month period to establish the conditions needed for the domestic gas market to operate effectively on a willing-buyer, willing-seller basis.
According to him, the regulator would assess factors including gas supply, the number and strength of buyers and sellers, transportation infrastructure, contractual arrangements, payment performance, delivery obligations, availability of market information and reliable price signals.
Umar stressed that the reform must ensure that gas remains affordable while creating an environment that can attract investment into the sector.
He noted that domestic gas supply was still constrained despite Nigeria’s large gas reserves, adding that new infrastructure would only be useful if there was enough gas available to flow through it.
The NMDPRA chief specifically highlighted the need to secure adequate gas supplies for major infrastructure projects such as the Ajaokuta-Kaduna-Kano pipeline.
He also said the regulator’s role would increasingly focus on establishing market rules, promoting fair access, protecting competition and monitoring market behaviour as the industry develops.
Umar disclosed that consultations had begun on proposed regulations addressing anti-competitive practices in the gas sector. The regulations are intended to give effect to competition provisions contained in the Petroleum Industry Act.
He said the market would not be liberalised at the same pace across all segments, as different parts of the gas industry have reached different levels of maturity.
The regulator also disclosed that the process of issuing gas distribution licences was nearing completion, with successful applicants expected to receive licences in the fourth quarter of 2026.
Umar said the government was also working to increase domestic consumption of liquefied petroleum gas, liquefied natural gas and compressed natural gas, while several LNG and gas-to-power projects were under development.
He said higher domestic gas utilisation could support electricity generation, reduce reliance on imports and help limit transmission losses.
Meanwhile, the Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, said Nigeria could achieve a willing-buyer, willing-seller gas market before 2030.
He said the programme was targeting domestic gas supply of 12.6 billion cubic feet per day by 2030, supported by 16 major infrastructure projects and more than 60 identified projects expected to generate about 15 billion cubic feet per day in gas demand.
The President of the Nigerian Gas Association, Yetunde Taiwo, also backed a commercially driven gas market but called for a clearly defined transition process.
She said government, regulators and industry players would need to work together to establish predictable rules and attract the investment required to expand gas supply and infrastructure.
The proposed shift is part of broader efforts under Nigeria’s Decade of Gas programme to increase domestic gas use and support the government’s goal of building a gas-powered economy by 2030.
