Nigeria Targets 2028 Transition to Competitive Gas Market

Nigeria's midstream and downstream petroleum regulator has set a target date of September 24, 2028, for transitioning to a more competitive and commercially driven gas market. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) made the announcement at a workshop in Abuja, where industry stakeholders discussed the framework for a Willing Buyer, Willing Seller (WBWS) market.

The regulator's chief executive, Mr. Rabiu Umar, emphasized that Nigeria should aim to transition within 24 months and that market readiness would be assessed through certain indicators, including gas supply availability, buyer and seller quality, access to infrastructure, contract reliability, and market information.

NMDPRA is nearing completion of its gas distribution network/gridding exercise, with plans to issue Gas Distribution Licences to qualified companies in the fourth quarter of 2026. The regulator's efforts also include deepening domestic utilization of liquefied petroleum gas (LPG) and liquefied natural gas (LNG), as well as reducing import dependence.

Industry experts expressed confidence that Nigeria could achieve a fully functioning WBWS market before 2030, with a gas supply ambition of 12.6 billion cubic feet per day by the target year and over 60 identified projects representing approximately 15 Bcf/d of potential demand.