Nigeria's Domestic Gas Delivery Rises to 2.05 Bcf/d; NUPRC Plans Swap Framework

Nigeria's Domestic Gas Delivery Obligations (DGDO) performance has seen an increase, reaching an average of 2.05 billion cubic feet per day in the year leading up to June 2026. This update was provided by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

At a stakeholders' workshop in Abuja focused on the 'Gas Swap Framework for Domestic Gas Delivery Obligation,' NUPRC Chief Executive, Mrs. Oritsemeyewa Eyesan, highlighted the importance of the DGDO as a key policy instrument for ensuring domestic gas production supports economic growth. She noted that out of approximately 63 gas-producing companies, 27 have DGDO allocations, but only 23 are actively supplying gas.

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The YTD June 2026 data, however, shows that a broader allocation base does not automatically translate into actual delivery. This delivery gap underscores the need for practical, innovative and market-responsive solutions that protect the integrity of the obligation while enabling real physical delivery of gas to domestic users. It is in this context that the proposed gas swap framework becomes especially important.

Eyesan pointed out a delivery gap, with average domestic gas deliveries at 2.05 Bcf/d against an allocation of 3.16 Bcf/d as of June 2026, representing a 65 percent performance. "This delivery gap underscores the need for practical, innovative and market-responsive solutions that protect the integrity of the obligation while enabling real physical delivery of gas to domestic users," she stated, emphasizing the significance of the proposed gas swap framework.

The proposed framework is designed to enable operators with stranded or difficult-to-evacuate gas to fulfill their domestic delivery obligations. They can achieve this by partnering with operators who possess the necessary infrastructure for delivering gas to domestic consumers. NUPRC believes that with strong commitment and effective implementation, this framework will convert obligations into actual supply, optimize asset utilization, support gas-to-power initiatives, and enhance confidence in Nigeria's domestic gas market.

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With the right commitment and implementation, the framework will help turn obligation into actual supply, make better use of existing assets, support gas-to-power delivery and build greater confidence in Nigeria’s domestic gas market.