Nigeria is planning to move from Government-controlled natural gas pricing to a market-driven system within the next one to two years as infrastructure improves and competition increases.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said on August 3 the transition will introduce a “willing buyer, willing seller” framework in line with the Petroleum Industry Act.
NMDPRA Chief Executive Rabiu Umar said the regulator is guiding an orderly shift towards competitive pricing, which will be supported by expanded pipeline networks and improved access for gas producers and consumers.
Gas producers have long called for faster price liberalization, but authorities have maintained that infrastructure challenges, including pipeline shortages and transport constraints, have limited market competition.