Favour Ishember, Abuja
Nigeria is on course to achieve a fully liberalised gas market driven by willing buyers and willing sellers before the end of the first phase of the Decade of Gas programme in 2030, the Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, has said.
Ubong disclosed this on Thursday at the Gas Market Maturity Workshop organised under the Decade of Gas initiative at the Petroleum Technology Development Fund (PTDF), Abuja.
He said the programme had established strategic milestones aimed at transforming Nigeria’s gas sector, including increasing gas supply capacity to 12.6 billion cubic feet per day (bcf/d) by 2028
According to him, the Decade of Gas initiative has identified 16 critical infrastructure projects expected to support market growth, while more than 60 demand-driven projects capable of creating about 15 billion cubic feet per day of gas demand have also been outlined.
Ubong stressed that building a mature gas market would require stronger investment in gas-to-power projects and improved access to cooking gas for Nigerians.
Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has set a 24-month target for Nigeria’s domestic gas market to transition into a fully operational willing buyer, willing seller framework.
The move, according to the regulator, is aimed at strengthening competition, encouraging private sector participation and attracting long-term investments into the gas industry.
NMDPRA Chief Executive, Mallam Rabiu Umar, who also spoke at the workshop, said the transition would be based on measurable benchmarks reflecting the readiness and development level of various segments of the gas market.
Umar explained that the framework aligns with the provisions of the Petroleum Industry Act (PIA), which provides a gradual pathway for Nigeria to move from a market dominated by regulatory controls to one driven by commercial agreements between producers and consumers.
He noted that Section 167 of the PIA supports a gradual reduction in price regulation as market competition, contractual arrangements and commercial forces become stronger.
“The journey we are starting should lead us to a place where we should target a 24-month at best period within which we will be able to declare the market to be truly a willing buyer, willing seller market,” Umar said.
The NMDPRA boss, however, cautioned that achieving the milestone would require more than policy statements, stressing the need for clear indicators, thresholds and safeguards to determine when the market is ready for full competition.
He identified key elements of a mature gas market to include reliable and diversified gas supply, increased participation by buyers and sellers, access to transportation infrastructure, strong contractual agreements, payment credibility, delivery commitments, availability of market data and transparent pricing mechanisms.
Umar said Nigeria’s abundant gas reserves had not translated into sufficient domestic supply, warning that infrastructure development must be supported with adequate gas volumes to ensure commercial viability.
He specifically highlighted the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project, saying the facility must have enough gas supply to achieve its intended economic impact.
“On the domestic side, supply is still tight, no matter how you look at it. We have a lot of work to do in our infrastructure space,” he stated.
“The focus right now is not just delivering infrastructure, but ensuring that we have enough molecules to fill the pipeline,” he added.
The NMDPRA chief executive said the role of the regulator would evolve as the gas market develops, with increased focus on establishing market rules, guaranteeing fair access, encouraging competition and monitoring industry practices.
He disclosed that the authority had commenced consultations on draft regulations aimed at tackling anti-competitive practices and converting the competition provisions of the PIA into enforceable regulations.
Umar called for a careful assessment of different segments of Nigeria’s gas market, noting that industries were developing at different speeds and would require different approaches before full liberalisation.
He said regulators must determine which segments were ready for competition, identify the conditions required and establish safeguards before opening them to unrestricted market participation.
The NMDPRA boss further revealed that the authority was close to completing the process of issuing gas distribution licences, with qualified companies expected to receive approvals in the fourth quarter of 2026.
He added that the regulator was working to boost domestic consumption of liquefied petroleum gas (LPG) and liquefied natural gas (LNG), describing increased gas utilisation as a major sign of economic progress.
According to him, the government was also promoting wider adoption of compressed natural gas (CNG), while several LNG and gas-to-power projects were currently being developed across the country.
He said expanding gas utilisation would strengthen electricity generation, reduce dependence on imported energy sources and minimise transmission losses linked to long-distance power distribution.
Umar assured investors that the authority remained committed to creating a transparent, stable and predictable regulatory environment capable of attracting sustainable capital into Nigeria’s gas sector.
He noted that gas projects require huge financial commitments and long-term agreements before investors can take Final Investment Decisions (FID).
“For you to take a Final Investment Decision (FID) in a gas investment, you need to have a long-term contract,” Umar said, adding that NMDPRA was ready to engage developers on regulatory measures that would support investment growth.
Also speaking, President of the Nigerian Gas Association (NGA), Engr. Mrs. Yetunde Taiwo, said Nigeria’s journey towards a willing buyer, willing seller gas market must be guided by clear and achievable milestones.
Taiwo said the NGA had consistently supported a commercially driven gas market but warned that the transition must be properly managed to avoid either premature implementation or unnecessary delays.
“As NGA, what we would like to see really is to see those goalposts, those milestones that have been set, that makes it a realistic journey for us to say we have achieved a willing buyer, willing seller status,” she said.
She acknowledged that Nigeria had made significant progress in the gas sector over the last decade but stressed that more work was still needed to achieve a competitive and sustainable market.
Taiwo urged stronger collaboration among government, regulators and industry stakeholders, calling on government to maintain clear policies, regulators to provide predictable frameworks and companies to continue investing in critical projects.
She said the ultimate objective was to build a gas market capable of attracting investments, expanding participation and delivering reliable energy to industries, businesses and households.
The workshop examined the benchmarks, conditions and measurable indicators required for Nigeria’s gradual transition into a fully liberalised gas market under the Decade of Gas initiative.
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