Tanya Davidson
Abuja — The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, is working to establish clear conditions for moving Nigeria’s domestic gas market towards greater commercial contracting under a willing-buyer, willing-seller framework.
The Authority Chief Executive, Mallam Rabiu A. Umar, disclosed this while speaking at the Decade of Gas Market Maturity Workshop, identifying supply reliability, infrastructure access, contract performance and payment discipline among the indicators that would determine the market’s readiness for the transition.
He said the regulatory process would also consider the availability of reliable market data and credible price signals as Nigeria seeks to deepen commercial transactions in the domestic gas sector.
According to Umar, Nigeria’s gas market has recorded growth in supply, utilisation and infrastructure investment, but persistent constraints could undermine its ability to operate on a more commercially driven basis.
He identified supply constraints, limited infrastructure access, payment risks and weak contract performance among the challenges requiring attention.
Umar said a mature gas market would require coordinated action by producers, buyers, infrastructure operators, financial institutions, government and regulators.
The NMDPRA chief said the objective was to create a market in which investment could respond more confidently to demand, infrastructure would support efficient transactions and contracts would command greater credibility.
He added that regulatory intervention should reduce as the market develops greater capacity to function commercially.
The proposed transition would therefore make the reliability of gas supply, the ability of buyers to honour contracts and the availability of credible market information central to determining how far Nigeria can move towards a fully commercial domestic gas market.
