The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has set a target of September 24, 2028, to declare Nigeria's domestic gas market mature. This move is part of the Authority's efforts to develop a willing-buyer, willing-seller domestic gas market. According to NMDPRA's Chief Executive, Rabiu Umar, the declaration of a mature market will not be done by pronouncement alone but will require real tests. These tests will be based on supply diversity, infrastructure access, contract performance, payment discipline, reliable market data, and credible pricing.
To achieve this goal, NMDPRA is concluding arrangements to grid the whole country, an exercise expected to be completed this month. The Authority will then hold a digital licensing round for gas distribution licences before the end of the year, based on the gridded areas available in the country. This process will be similar to the upstream sector, where operators apply for Oil Mining Licences. The gridding exercise will enable the Authority to identify areas that are available for gas distribution and provide licences to interested parties.
The NMDPRA is also working on rebuilding the Nigerian Gas Transportation Network Code to ensure open access to pipelines. This involves setting clear and consistently applied rules for injecting gas into pipelines and taking it out, including shrinkage factors. According to Umar, a developer with a project as short as 20 kilometres should be able to connect to an existing pipeline, and it is the NMDPRA's job to ensure that access. The Authority's goal is to make sure that gas can move freely from wellheads to processing plants, through pipelines to power stations, industrial clusters, transport corridors, and homes, and on to export terminals.
The federal government's "Decade of Gas Initiative" has been described by Umar as "an engine of execution." The NMDPRA is accelerating licences and approvals for processing plants, pipelines, storage facilities, compressed natural gas (CNG), and liquefied natural gas (LNG) projects. The Authority is also exploring new initiatives, such as floating LNG, to deepen both CNG and LNG penetration. Umar noted that the LNG conversation has changed in recent years, with LNG now being used domestically by companies such as Greenville LNG.
To ensure a fair and competitive market, the NMDPRA has signed a cooperation framework with the Federal Competition and Consumer Protection Commission (FCCPC) on anti-competitive practices and behaviours. This framework sets rules against price fixing, market sharing, abuse of dominance, capacity hoarding, and discriminatory access, while still protecting investment. The Authority aims to create a level playing field for all players in the gas market, without punishing early investors.
Umar emphasized the importance of converting Nigeria's gas reserves into working infrastructure. Without infrastructure, reserves are potential and will continue to be so. With infrastructure, gas becomes productive and contributes to national resilience, especially in the light of global headwinds. The NMDPRA is working to ensure that gas can move freely and efficiently throughout the country, and that the market is open and competitive.
The Gas Investment Forum 2026, themed "Positioning Nigeria as Africa's Global Gas Powerhouse," provided a platform for stakeholders to discuss the country's gas potential and the way forward. The forum explored opportunities for investment in the gas sector and ways to overcome challenges. KEY_POINT: The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) targets September 24, 2028, to declare Nigeria's domestic gas market mature. KEY_POINT: The Authority is concluding arrangements to grid the whole country, enabling a digital licensing round for gas distribution licences. KEY_POINT: The NMDPRA is working to rebuild the Nigerian Gas Transportation Network Code to ensure open access to pipelines.