The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has begun developing clear conditions for Nigeria’s domestic gas market to transition towards a more commercial, willing-buyer, willing-seller model.
The Chief Executive of the authority, Rabiu Umar, disclosed this at the Decade of Gas Market Maturity Workshop, where he said the transition would be based on measurable indicators of market readiness.
According to Umar, the indicators would include gas supply, participation by market players, access to infrastructure, contract performance, payment discipline, availability of reliable market data and credible price signals.
He said Nigeria had made progress in gas supply, utilisation and infrastructure investment but continued to face constraints that could hinder the development of a fully commercial market.
Among the challenges, he identified inadequate gas supply, limited access to infrastructure, payment risks and weak compliance with contractual obligations.
“The transition towards a more mature market will require clear and measurable conditions, guided by indicators such as gas supply, market participation, infrastructure access, contract performance, payment discipline, reliable market data and credible price signals,” Umar said.
He said the development of a mature domestic gas market would require cooperation among producers, buyers, infrastructure operators, financial institutions, government and regulatory agencies.
Umar said the goal was to establish a market in which investment decisions respond more directly to demand, infrastructure facilitates transactions and commercial contracts enjoy greater confidence among participants.
He added that regulatory intervention would gradually decline as the market develops the capacity to support commercial transactions more effectively.
The workshop is part of efforts to strengthen Nigeria’s domestic gas market, attract investment and improve the efficiency and reliability of transactions across the sector.
