Nigeria Targets Market-Based Gas Pricing Within One to Two Years
Nigeria's downstream oil and gas regulator has announced plans to transition to market-based gas pricing within one to two years. According to Rabiu Umar, head of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), this shift will occur as infrastructure improves and competition deepens.
The current government-administered pricing system has been criticized for being slow to adapt to market conditions. Gas producers have long sought faster price liberalization, but the government had previously stated that the market was not yet mature due to pipeline shortages, transport bottlenecks, and limited market access.
Umar emphasized that the regulator is guiding an orderly transition towards a willing buyer, willing seller framework for natural gas pricing. This change aligns with the Petroleum Industry Act, which empowers the regulator to set domestic gas prices for designated strategic sectors while providing a pathway towards a more competitive market over time.