NIGERIA TARGETS FULL GAS MARKET LIBERALISATION BY 2028

The Federal Government plans to end regulated pricing in Nigeria’s domestic gas market by September 2028, with the aim of moving to a fully established willing-buyer, willing-seller framework.

The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Rabiu Umar, disclosed this at the Gas Market Maturity Workshop held in Abuja under the Decade of Gas initiative.

Umar said the transition would be based on measurable conditions showing that different segments of the gas market had reached the required level of maturity.

He identified adequate gas supply, a diverse pool of buyers and sellers, access to transportation infrastructure, reliable contracts, payment obligations, market information and credible price signals as key indicators.

The NMDPRA chief said the domestic gas market remained constrained by supply shortages despite Nigeria’s large gas reserves. He stressed that major infrastructure projects must have sufficient gas volumes to operate effectively.

He also said the regulator was working on regulations to prevent anti-competitive practices and promote fair access as the market becomes more commercial.

The authority is also expected to complete the issuance of gas distribution licences in the fourth quarter of 2026.

The Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, said Nigeria could achieve a willing-buyer, willing-seller gas market before 2030, with plans to increase gas supply to 12.6 billion cubic feet per day.

The Nigerian Gas Association also called for clear milestones to guide the transition and ensure the market is sufficiently prepared for deregulation.