Nigeria to Shift to Market-Driven Gas Pricing Within 1–2 Years: Regulator
Nigeria to Shift to Market-Driven Gas Pricing Within 1–2 Years: Regulator
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is "guiding an orderly transition" toward a willing buyer, willing seller framework for natural gas pricing under the Petroleum Industry Act (PIA), NMDPRA head Rabiu Umar said.
Legal Framework: The Petroleum Industry Act (PIA) empowers the regulator to set domestic gas prices for designated strategic sectors, including:
power generation;
certain gas-based industries.
The law also provides a pathway toward a more competitive market over time.
Gas producers have long pushed for faster price liberalization. However, the government argues the market is not yet mature due to:
Pipeline shortages;
Transport bottlenecks;
Limited market access constraining competition.
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