Nigeria supplied an average of 2.05 billion cubic feet (bcf) of gas per day to the domestic market in the first half of 2026, falling about 35 per cent short of its Domestic Gas Delivery Obligation (DGDO) target, according to the Nigerian Upstream Petroleum Regulatory Commission.
The shortfall has prompted the commission to introduce a proposed Gas Swap Framework designed to improve compliance and boost gas availability for local consumers, including power plants and industries.
The Commission Chief Executive of the NUPRC, Oritsemiyewa Eyesan, disclosed this during a stakeholders’ workshop on the proposed Gas Swap Framework for Domestic Gas Delivery Obligation held in Abuja.
The workshop, organised by the commission, sought to familiarise stakeholders with the proposed framework and gather industry input ahead of its implementation.
Details of the meeting were contained in a statement issued on Friday by the commission’s Head of Media and Corporate Communications, Eniola Akinkuotu.
According to the statement, Nigeria recorded an average domestic gas supply of 2.05 billion cubic feet per day between January and June 2026, compared to the allocated Domestic Gas Delivery Obligation of 3.16 billion cubic feet per day, representing approximately 65 per cent compliance.
Delivering the keynote address through the Executive Commissioner for Development and Production, Enorense Amadasu, Eyesan described the Domestic Gas Delivery Obligation as a key government policy aimed at ensuring that Nigeria’s gas resources support industrial growth, electricity generation and broader economic development.
She noted that only 27 of the country’s roughly 63 gas-producing companies were assigned Domestic Gas Delivery Obligations, while just 23 of those firms were actively supplying gas to domestic customers during the review period.
Eyesan said the latest figures demonstrated that expanding the number of companies under the obligation had not automatically translated into increased gas delivery.
She explained that the supply gap highlighted the need for practical and market-driven solutions capable of ensuring that gas allocated for domestic use reaches end-users.
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According to her, the proposed Gas Swap Framework is intended to address infrastructure and transportation challenges that prevent some producers from meeting their delivery obligations.
Under the arrangement, producers unable to transport their gas due to stranded assets or limited evacuation infrastructure would be able to partner with companies that already have the facilities needed to deliver gas to designated domestic customers.
Eyesan expressed confidence that the framework would improve the utilisation of existing infrastructure, strengthen gas-to-power supply, enhance compliance with the Domestic Gas Delivery Obligation and increase confidence in Nigeria’s domestic gas market.
She called on producers, transporters and regulators to collaborate in ensuring the success of the initiative, stressing that stronger partnerships would help improve domestic gas supply and support the country’s gas value chain.
The Domestic Gas Delivery Obligation is a regulatory policy introduced to reserve a portion of gas produced by upstream operators for local consumption, particularly for electricity generation, manufacturing and other strategic sectors.
Despite the policy’s objectives, stakeholders in the industry have repeatedly cited inadequate infrastructure, evacuation bottlenecks and commercial constraints as major obstacles preventing full compliance with domestic gas supply obligations.