The Federal Government says Nigeria plans to end regulated pricing in the domestic gas market by September 2028 as part of efforts to establish a fully commercial gas market.
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 measurable conditions designed to determine when different segments of the gas market were ready for liberalisation, in line with the Petroleum Industry Act.
He explained that the target was to move from a market largely controlled through regulation to one driven increasingly by commercial agreements between willing buyers and sellers.
According to him, the NMDPRA is working towards establishing the necessary conditions within 24 months for the market to operate fully under the willing-buyer, willing-seller model.
Umar said the process would not be based merely on declarations but on specific indicators, including adequate gas supply, diverse buyers and sellers, access to transportation infrastructure, reliable contracts, payment performance, delivery obligations, market information and credible price signals.
He, however, acknowledged that domestic gas supply remains tight despite Nigeria’s abundant gas reserves.
The NMDPRA chief stressed that developing infrastructure alone would not be sufficient unless enough gas was available to utilise the facilities.
“If you look at supply, for example, on the domestic side, it is still tight, no matter how you look at it. We have a lot of work to do in our infrastructure space,” Umar said.
He specifically highlighted the need to ensure that major projects, including the Ajaokuta-Kaduna-Kano gas pipeline, have adequate gas supplies to operate commercially.
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Umar also said the regulator’s role would gradually change as the market develops, with greater attention to establishing market rules, promoting fair access, protecting competition and monitoring market conduct.
He disclosed that consultations had begun on draft regulations targeting anti-competitive practices, aimed at giving effect to the competition provisions of the Petroleum Industry Act.
The NMDPRA boss further revealed that the authority was nearing completion of the process for issuing gas distribution licences, with successful applicants expected to receive licences in the fourth quarter of 2026.
Meanwhile, the Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, said Nigeria could achieve a willing-buyer, willing-seller gas market before the end of the programme’s first horizon in 2030.
Ubong said the programme had set a target of increasing gas supply to 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 called for a clearly sequenced transition, saying specific milestones should guide the move towards a commercially driven gas market.
She stressed the need for stronger cooperation among the government, regulators and industry players to attract investment and improve gas supply to industries, businesses and households.