Nigeria plans to end regulated domestic gas pricing by 2028

Nigeria is set to end regulated pricing in the domestic gas market by September 24, 2028, as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) targets a transition to a fully established willing-buyer, willing-seller framework.The Chief Executive of NMDPRA, Rabiu Umar, disclosed this on Thursday at the Gas Market Maturity Workshop organised under the Decade of Gas initiative at the Petroleum Technology Development Fund in Abuja.Umar said the transition would be based on measurable conditions that demonstrate the maturity of different segments of the gas market, in line with the provisions of the Petroleum Industry Act (PIA).“Gas must be affordable for Nigerians while supporting President Ahmed Tinubu’s investment reforms. This transition is in line with the Nigeria Decade of Gas goal to become a gas-powered economy by 2030,” he stated.He noted that the PIA envisaged a shift from a market largely coordinated through regulation to one driven increasingly by commercial contracts between willing buyers and willing sellers. “Invariably, this is the first time that we have been bold enough to set a clear target for our gas market transition,” he added.According to Umar, the authority is targeting a 24-month period to establish the conditions required to declare the market a fully functioning willing-buyer, willing-seller market.He identified key indicators of market maturity as supply availability and diversity, the number and quality of buyers and sellers, access to transportation infrastructure, strength of contracts, payment reliability, delivery obligations, market information and credible price signals.Umar acknowledged that Nigeria’s domestic gas supply remains tight despite vast resources, stressing the need to match infrastructure development with sufficient gas supply. He specifically highlighted the importance of ensuring projects such as the Ajaokuta-Kaduna-Kano pipeline have enough gas to be commercially viable.The regulator’s role would evolve to focus more on establishing market rules, ensuring fair access, protecting competition and monitoring market conduct. NMDPRA has already begun consultations on draft regulations against anti-competitive practices.Umar also disclosed that the authority is nearing the conclusion of the process for issuing gas distribution licences, expected to be completed in the coming weeks, with qualified companies set to receive licences in the fourth quarter of 2026.He reaffirmed the authority’s commitment to creating a predictable and transparent regulatory environment to attract long-term investment into the gas sector.    

The Federal Government plans to end regulated pricing in Nigeria’s domestic gas market by 2028, transitioning to a willing-buyer, willing-seller framework. Read More: https://punchng.com/fg-to-end-regulated-gas-pricing-in-2028/