The Federal Government will stop regulating prices in the domestic gas market by September 2028.
This was disclosed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Thursday.
Speaking at the Gas Market Maturity Workshop held under the Decade of Gas initiative at the Petroleum Technology Development Fund (PTDF) in Abuja, the Chief Executive Officer of NMDPRA, Rabiu Umar, said the target is to move to a fully willing buyer, willing seller market.
Umar said the Authority is giving itself 24 months to put the necessary conditions in place to declare the gas market fully commercial.
“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,” he said.
He explained that the transition will be in line with the Petroleum Industry Act (PIA) and the Federal Government’s plan to make Nigeria a gas powered economy by 2030.
According to him, gas must remain affordable for Nigerians while also supporting President Bola Tinubu’s reforms to attract investment into the sector.
Umar noted that this is the first time the regulator has been bold enough to set a clear target for the transition.
He said Section 167 of the PIA provides for a gradual withdrawal of price regulation as commercial contracting and competition grow stronger.
He added that the move will not be based on just pronouncements but on measurable indicators, thresholds and safeguards that show maturity of different segments of the market, such as gas supply availability, number of buyers and sellers, access to infrastructure, contract strength and price signals.
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