Nigeria is taking another step towards reforming its domestic gas market, with a new framework that could eventually allow gas prices to be determined by willing buyers and willing sellers rather than fixed government arrangements.
But stakeholders at a Gas Market Maturity Workshop in Abuja say the success of the policy will depend on infrastructure, adequate gas supply and transparency.
The Chief Executive of Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Rabiu Abdullahi Umar, says Nigeria’s abundant gas reserves present a major opportunity, especially as global gas markets continue to experience supply disruptions.
According to him, the priority is to build a market that can reliably and commercially deliver gas at the level of maturity needed to drive investment and economic growth.
The regulator says its focus is to establish clear market rules, ensure fair access, protect competition, monitor market conduct and maintain confidence in the system.
A 24-month target has been set for significant progress towards a willing buyer, willing seller gas market.
Experts at the workshop, however, warn that without pipelines, storage facilities, efficient distribution networks and reliable market information, the reforms may not translate into tangible benefits for consumers.
For millions of Nigerians who depend on cooking gas, and for industries and businesses powered by gas, stakeholders say successful implementation of the reforms could improve supply, attract investment and expand access to gas for homes, industries and power generation.
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(Editor: Anoyoyo Ogiagboviogie)
