Nigeria plans to transition to a market-based domestic gas pricing system within the next one to two years, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The move would gradually replace government-regulated prices with a “willing buyer, willing seller” model as pipeline infrastructure expands and competition improves. Speaking at the Nigeria Annual International Conference and Exhibition, NMDPRA chief executive Rabiu Umar said the transition aligns with the Petroleum Industry Act, which currently allows the regulator to set prices for strategic sectors such as electricity generation and gas-based industries. Gas producers have long pushed for faster price liberalization, while the government has argued that infrastructure constraints, including limited pipelines and restricted market access, have prevented full competition. Officials believe a more competitive pricing system will encourage investment and strengthen Nigeria’s domestic gas market.
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