Nigeria Abandons Regulated Gas Pricing by 2028
Nigeria is set to transition from regulated gas pricing to a willing-buyer, willing-seller framework by September 24, 2028. According to Rabiu Umar, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), this move will be based on measurable conditions showing market maturity.
The assessment of market maturity will consider factors such as gas supply availability, diversity of buyers and sellers, access to transportation infrastructure, contractual strength, payment reliability, delivery obligations, availability of market information, and credible price signals. Umar emphasized that domestic gas supply remains tight despite Nigeria's significant gas reserves, highlighting the need for infrastructure development to be matched with sufficient gas supply.
The NMDPRA is nearing completion of its gas distribution licensing process, with qualified companies expected to receive licenses by the fourth quarter of 2026. The authority is also working to increase domestic utilisation of liquefied petroleum gas, liquefied natural gas, and compressed natural gas, alongside the development of LNG and gas-to-power projects.