FG to end regulated gas pricing in 2028

Nigeria plans to end regulated gas pricing by 2028, aiming to transition to a willing-buyer, willing-seller framework, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The Chief Executive, Rabiu Umar, announced this during a Gas Market Maturity Workshop in Abuja. The transition will be based on measurable conditions reflecting the maturity of various gas market segments, as per the Petroleum Industry Act.

Umar emphasized that gas prices must remain affordable for Nigerians while supporting President Tinubu's investment reforms. The goal is to make Nigeria a gas-powered economy by 2030. Umar outlined key indicators of market maturity, including supply availability and diversity, buyer and seller numbers and quality, transportation infrastructure, contract strength, payment reliability, delivery obligations, market information, and credible price signals.

He stressed that the market transition would be based on clearly defined indicators rather than broad intent. Nigeria's domestic gas supply remains tight despite its substantial gas resources, necessitating infrastructure development alongside sufficient gas molecules. The NMDPRA is also working on anti-competitive practices regulations and working towards increasing domestic utilization of liquefied petroleum gas and liquefied natural gas.