Domestic gas sales rise 30% on reforms – Report

Nigeria's domestic gas market has experienced a significant surge in sales, with a notable 30% increase recorded between January 2022 and January 2025. Sales climbed from 49.3 billion standard cubic feet (bscf) to 64.2 bscf during this period, according to a legal analysis by Tope Adebayo LP. This expansion is largely credited to the implementation of reforms under the Petroleum Industry Act (PIA) of 2021 and recent executive orders issued by President Bola Tinubu.

The reforms have reportedly enhanced regulatory clarity and fiscal attractiveness within the gas value chain, fostering greater investor confidence. The PIA, described as the most comprehensive reform of Nigeria's petroleum sector in decades, has established a stronger framework for domestic gas development. Key aspects include clearer regulations, pricing liberalization mechanisms, infrastructure support, and improved investment incentives. The Act also created separate regulatory authorities for upstream and midstream/downstream operations, aiming to streamline oversight and reduce bottlenecks.

Despite these positive developments, the analysis acknowledges that infrastructure gaps and ongoing implementation challenges continue to impede the sector's growth pace. Nigeria possesses vast gas reserves, estimated at over 206 trillion cubic feet, but has historically struggled to leverage this resource for domestic energy supply due to underinvestment and inadequate infrastructure.

Further initiatives like the Domestic Gas Delivery Obligation framework aim to boost supply to critical sectors such as power generation and industry, with enforceable penalties for non-compliance. The PIA also introduced open-access provisions for infrastructure, partial gas pricing liberalization, and the establishment of a Midstream and Downstream Gas Infrastructure Fund to support investment. Recent executive orders have also focused on improving the investment climate through tax incentives and streamlined contracting processes.

“

The PIA represents the most comprehensive reform of Nigeria’s petroleum sector in decades and has established a stronger foundation for domestic gas development through regulatory clarity, pricing liberalisation mechanisms, infrastructure support and enhanced investment incentives.