NMDPRA sets 2028 target for competitive gas market

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has set Sept. 24, 2028 as the target date for Nigeria’s transition to a more competitive and commercially driven Willing Buyer, Willing Seller (WBWS) gas market.

The Authority Chief Executive, Mr Rabiu Umar, disclosed this on Thursday in Abuja at a high-level Gas Market Maturity Workshop convened by the NMDPRA, Ministry of Petroleum Resources and the Decade of Gas Secretariat.

Umar said the proposed 24-month transition would move the country towards a fully market-driven gas pricing framework.

He urged industry stakeholders to establish clear and measurable milestones for increasing gas production and consumption while ensuring affordability for Nigerians.

According to him, market readiness will be assessed based on the availability and diversity of gas supply, quality of buyers and sellers, infrastructure access, reliability of contracts and payments, market information and credible price signals.

Umar also disclosed that the NMDPRA was nearing completion of its gas distribution network and gridding exercise, with plans to issue Gas Distribution Licences to qualified companies in the fourth quarter of 2026.

He said the Authority was also working to deepen domestic utilisation of Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) while reducing dependence on imports.

The Coordinating Director, Decade of Gas, Mr Ed Ubong, expressed confidence that Nigeria could achieve a fully functioning WBWS market before 2030.

He identified supply, infrastructure, demand, gas-to-power and LPG as critical areas for market maturity, with a gas supply ambition of 12.6 billion cubic feet per day by 2030.

Ubong said more than 60 projects representing about 15 billion cubic feet per day of potential gas demand by 2030 had been identified.

He listed key infrastructure projects including the Ajaokuta-Kaduna-Kano (AKK) pipeline, Escravos-Odidi connection and the connection of offshore Seplat fields to the Qua Iboe Terminal (QIT) in Eket.

President of the Nigerian Gas Association, Mrs Yetunde Taiwo, described the transition to a WBWS market as a long-standing priority of the association.

She said the industry had recorded significant progress over the past decade but stressed the need for clear milestones and stronger collaboration among government, regulators and industry players to attract investment.

The workshop focused on strengthening competition, commercial contracting and the gradual transition to a more market-driven gas market in line with the Petroleum Industry Act.