Amanze Chinonye
Nigeria is targeting Sept. 24, 2028, to transition its domestic gas market to a willing-buyer, willing-seller system, the country’s midstream and downstream petroleum regulator said, as it seeks to deepen investment and reduce reliance on administered pricing.
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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has begun defining clear and measurable conditions for the transition, Chief Executive Rabiu A. Umar said at a Decade of Gas Market Maturity Workshop in Abuja.
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Umar said the framework would assess factors including gas supply, market participation, infrastructure access, contract performance, payment discipline, reliable market data and credible price signals. The transition will therefore depend on the market meeting defined maturity conditions rather than simply taking effect on a fixed date.
Nigeria’s gas market has recorded growth in supply, utilisation and infrastructure investment, but challenges remain around supply constraints, infrastructure access, payment risks and contract performance, Umar said. Addressing those weaknesses will be critical to creating a market in which buyers and sellers can negotiate commercial terms with less regulatory intervention.
Umar said a mature gas market would require coordinated efforts by producers, buyers, infrastructure operators, financial institutions, government agencies and regulators. The objective, he said, is to create a market where investment responds more confidently to demand, infrastructure supports efficient transactions and contracts command greater credibility as regulatory intervention declines.
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The move is in line with Nigeria’s longer-term policy of developing a market-led gas industry as supply expands and market conditions improve.
The government has sought to attract investment into gas production and infrastructure while increasing domestic utilisation of the country’s substantial gas resources.
The Decade of Gas programme is targeting gas supply of 12.6 billion cubic feet per day by 2030, with 16 infrastructure projects and more than 60 demand-side projects identified to support growth in the sector.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
