Nigeria is set to end regulated gas pricing by September 24, 2028, as the Federal Government moves towards a more commercially driven domestic gas market. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said the transition will gradually move the sector towards a willing-buyer, willing-seller framework, where commercial contracts play a greater role in determining transactions and prices.
NMDPRA Chief Executive, Rabiu Umar, announced the target at the Gas Market Maturity Workshop held in Abuja under the Decade of Gas initiative. He said the planned transition would be guided by measurable indicators rather than broad policy statements, with supply availability, market participation, transportation infrastructure, contract strength, payment reliability and credible price signals among the key benchmarks for determining market readiness.
Despite Nigeria’s significant gas reserves, Umar acknowledged that domestic gas supply remains tight, warning that infrastructure development must be matched with enough gas to make major projects commercially viable. He specifically highlighted the need to ensure adequate supply for projects such as the Ajaokuta-Kaduna-Kano pipeline, while noting that the regulator’s role would increasingly focus on fair market access, competition, market rules and monitoring as liberalisation progresses.
The authority is also working to deepen domestic gas utilisation through liquefied petroleum gas, liquefied natural gas and compressed natural gas, alongside LNG and gas-to-power projects. NMDPRA said qualified companies are expected to receive gas distribution licences in the fourth quarter of 2026, while consultations have begun on regulations aimed at addressing anti-competitive practices in the sector.
Meanwhile, stakeholders in the gas industry have backed a commercially driven market but stressed the need for clear milestones and careful sequencing. The Decade of Gas Secretariat said Nigeria is targeting gas supply of 12.6 billion cubic feet per day by 2030, while the Nigerian Gas Association called for stronger collaboration between government, regulators and industry. The broader objective is to create a predictable gas market capable of attracting long-term investment, expanding domestic consumption and supporting industries and power generation.
source: punch