Nigeria's Gas Market Thrives Under PIA and New Orders

Nigeria's domestic gas market is experiencing growth under the Petroleum Industry Act (PIA) 2021 and recent executive orders, according to Tope Adebayo of LP, a Lagos-based law firm. The PIA represents a significant reform in Nigeria's petroleum sector, establishing a legal and commercial framework for gas development.

It aims to enhance regulatory clarity and attract investment across the gas value chain. Despite holding 206 trillion cubic feet of proven gas reserves, Nigeria's domestic gas market has historically struggled with underinvestment and inadequate infrastructure.

The PIA introduces a domestic gas delivery obligation and a framework for increased gas supply, particularly for power generation and industry. Data indicates that domestic gas sales increased from 310.73 million standard cubic feet (mmscf) in January 2022 to 206.09 mmscf in January 2025, while gas flaring has seen a modest decline.

However, Adebayo cautions that legal reforms alone cannot unlock the market's full potential without addressing infrastructural gaps and payment risks in the power sector.