The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has set a target date of September 24, 2028, for Nigeria's domestic gas market to transition to a fully established willing buyer, willing seller framework. This move is in line with the Nigeria Decade of Gas goal to become a gas-powered economy by 2030. The NMDPRA Chief Executive, Mallam Rabiu Umar, made this announcement at the Gas Market Maturity Workshop in Abuja.
The transition will be based on measurable conditions demonstrating the maturity of different segments of the gas market, as provided in the Petroleum Industry Act. The Act envisages a gradual shift from a regulated market to one driven by commercial contracts between willing buyers and willing sellers. Umar noted that this is the first time a clear target has been set for Nigeria's gas market transition.
The NMDPRA has identified key indicators of market maturity, including supply availability and diversity, the number and quality of buyers and sellers, access to transportation infrastructure, and market information. The authority will task industry stakeholders with developing clear milestones and delivering on their commitments to increase Nigeria's gas production and consumption.
Despite Nigeria's vast gas resources, domestic gas supply remains tight, and infrastructure development must be matched with sufficient gas molecules to utilise the infrastructure. Umar stressed the need to ensure that major gas infrastructure projects, such as the Ajaokuta-Kaduna-Kano pipeline, have sufficient gas supply to make them commercially useful.
The NMDPRA boss said the role of the regulator would evolve as the market develops, with greater emphasis on establishing market rules, ensuring fair access, protecting competition, and monitoring market conduct. The authority has commenced consultations on draft regulations on anti-competitive practices aimed at translating the competition provisions of the PIA into enforceable regulatory rules.
The authority is nearing the conclusion of the process for issuing gas distribution licences, with the exercise expected to be completed in the coming weeks. Qualified companies will be issued gas distribution licences in the fourth quarter of 2026. The NMDPRA is also working to deepen domestic utilisation of liquefied petroleum gas and liquefied natural gas.
Industry stakeholders, including the Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, and the President of the Nigerian Gas Association, Engr. Mrs. Yetunde Taiwo, have expressed support for the transition to a willing buyer, willing seller market. They emphasised the need for clearly defined milestones and a realistic assessment of the different segments of the Nigerian gas market.
Key points
- The NMDPRA has set a target date of September 24, 2028, for Nigeria's domestic gas market to transition to a fully established willing buyer, willing seller framework.
- The transition will be based on measurable conditions demonstrating the maturity of different segments of the gas market.
- The NMDPRA has identified key indicators of market maturity, including supply availability and diversity, and access to transportation infrastructure.
