NMDPRA Announces 2028 Deadline for Gas Pricing Reform

The price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has increased to ₦1,600 per kilogram in parts of Lagos, with prices at ₦1,500/kg in Osun and ₦1,300/kg in Oyo. This rise comes as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) sets a target date of September 24, 2028, for transitioning Nigeria's domestic gas market to a willing-buyer, willing-seller pricing framework.

This transition is mandated under the Petroleum Act and will depend on the market meeting specific conditions. NMDPRA Chief Executive Rabiu Umar stated that the transition will not solely rely on the 2028 deadline but will be assessed based on market maturity indicators, including gas supply, buyer-seller dynamics, and infrastructure access.

Despite Nigeria's significant gas resources, domestic supply remains tight, necessitating infrastructure development to ensure project viability. The government aims to enhance domestic LPG use and expand gas-to-power projects, with new gas distribution licenses expected to be issued in the fourth quarter of 2026.