The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has introduced a revised gas transportation code to improve access to pipeline infrastructure, reduce operational losses and support cross-border gas trade.
The authority’s Chief Executive, Rabiu Umar, disclosed this at the 2026 OTL Africa Downstream Energy Week in Lagos, noting that the updated Nigerian Gas Transportation Network Code would establish clearer guidelines for companies transporting gas through shared pipeline systems.
Umar said the second revision of the code builds on improvements recorded under the previous version, including a 30 per cent reduction in gas imbalance on the Western Network as more shippers joined the system.
He explained that the code provides standard procedures for gas producers and shippers, covering the injection of gas into pipelines, measurement of volumes and nomination of quantities for transportation.
According to him, clear operating rules are necessary to prevent disputes among companies using the same infrastructure and ensure transparency in gas transportation.
The revised framework is also expected to address technical and commercial challenges associated with gas losses during transportation and processing. Umar identified the shrinkage factor, which accounts for gas lost or consumed during these operations, as an area requiring proper regulation to improve efficiency and protect operators.
He added that the code would become increasingly important as Nigeria expands its pipeline network, including through the Ajaokuta-Kaduna-Kano pipeline project.
Umar also highlighted the role of standardised transportation rules in facilitating regional gas trade, particularly as Nigeria participates in the West African Gas Pipeline and considers proposed routes such as the Trans-Saharan Gas Pipeline to Algeria and the Trans-African pipeline to Morocco.
He said differences in operating procedures across countries could complicate cross-border gas deliveries, making common standards for measurement, communication and custody transfer essential.
The NMDPRA chief linked the revised code to Nigeria’s efforts to increase domestic gas consumption, attract investment and improve energy supply to industries and power plants.
He disclosed that about 60 per cent of the gas processed in September was consumed by midstream and downstream users, including electricity generators and manufacturers, while some volumes were exported to neighbouring countries through the West African Gas Pipeline.
Umar further noted that demand for cooking gas remained higher than available supply, creating opportunities for investment in local production and supporting infrastructure.
He said the completion of major pipeline projects would double Nigeria’s gas transportation capacity from 2.2 billion cubic feet per day to 4.4 billion cubic feet per day.
The projects include the Obiafu-Obrikom-Oben (OB3) pipeline and the Ajaokuta-Kaduna-Kano pipeline, which he said was more than 80 per cent complete. The additional capacity is expected to improve the movement of gas from southern Nigeria to consumers in the North.
However, Umar stressed that expanding pipeline capacity alone would not be enough to unlock the country’s gas potential, pointing to the need for further investment in gas processing, pipeline infrastructure, fertiliser production, liquefied petroleum gas and flare gas commercialisation.
He estimated that Nigeria’s oil and gas sector would require between $30bn and $50bn in fresh investment by 2030 to develop these opportunities.
Umar urged gas shippers, transporters and investors to take advantage of the revised code and expanding infrastructure to increase participation in the domestic gas market and regional energy trade.
