Nigeria is targeting September 2028 for the end of regulated pricing in the domestic gas market as the Federal Government moves towards a commercial system based on direct transactions between willing buyers and sellers.
The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Rabiu Umar, disclosed the timeline on Thursday at a Gas Market Maturity Workshop held in Abuja under the Decade of Gas initiative, according to Punch.
Umar said the transition would depend on the gas market meeting measurable conditions, including adequate supply, participation by buyers and sellers, access to transportation infrastructure, reliable contracts and payments, market information and credible price signals.
He said domestic gas supply remained tight despite Nigeria’s large reserves, warning that infrastructure projects would not achieve their intended economic value without enough gas to utilise them. He specifically cited the need to ensure adequate supply for major projects such as the Ajaokuta-Kaduna-Kano pipeline.
The NMDPRA chief also disclosed that the authority was working towards issuing gas distribution licences to qualified companies in the fourth quarter of 2026. He said the regulator was also pursuing measures to increase domestic use of LPG, LNG and CNG, alongside gas-to-power projects.
According to Umar, the regulator’s role would increasingly shift towards establishing market rules, ensuring fair access, protecting competition and monitoring market conduct as the sector becomes more commercially driven. He added that consultations had begun on regulations aimed at addressing anti-competitive practices.
Meanwhile, the Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, said the programme was targeting gas supply of 12.6 billion cubic feet per day by 2030. He said 16 major infrastructure projects had been identified to support market expansion, alongside more than 60 projects expected to generate additional gas demand.
The President of the Nigerian Gas Association, Yetunde Taiwo, said the transition should be guided by clearly defined milestones to ensure that the market is neither liberalised prematurely nor held back unnecessarily. She called for closer cooperation among government, regulators and industry players to create a predictable environment for investment.
