The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has commenced work on defining clear and measurable conditions for the transition of Nigeria’s domestic gas market towards greater commercial contracting under a willing-buyer, willing-seller framework.
Chief Executive of the Authority, Mallam Rabiu A. Umar, disclosed this while speaking at the Decade of Gas Market Maturity Workshop, where he outlined key indicators that would guide the assessment of Nigeria’s progress towards a more mature and commercially driven gas market.
Umar said the framework would focus on critical indicators including gas supply, market participation, infrastructure access, contract performance, payment discipline, availability of reliable market data and the emergence of credible price signals.
He noted that Nigeria’s gas market had recorded significant growth in supply, utilisation and infrastructure investment, but acknowledged that challenges persist, particularly in the areas of supply constraints, infrastructure access, payment risks and contract performance.
According to him, achieving greater market maturity would require coordinated efforts among producers, buyers, infrastructure operators, financial institutions, government and regulatory authorities.
Umar said the objective was to build a gas market in which investment could respond confidently to demand, infrastructure would support efficient transactions and contractual commitments would carry greater credibility.
He added that regulatory intervention should progressively adapt as the market develops, allowing commercial forces to play a greater role in shaping Nigeria’s domestic gas market.
The workshop forms part of ongoing efforts to strengthen the commercial foundations of Nigeria’s gas sector and create conditions capable of attracting sustained investment across the domestic gas value chain.
