The Interplay Between the Domestic Gas Pricing Framework and the Unregulated Gas Market: A Focus on Nigeria

Nigeria’s gas market is a complex landscape featuring both the Regulated Domestic Gas Market and the Unregulated Market. While the Regulated Market operates under a strict pricing framework, the Unregulated Market thrives on free market pricing dynamics. This dynamic space hosts a variety of gas transactions unburdened by price controls.

However, and notably, this freedom is framed by reporting obligations such as the obligation to disclose the agreed gas price, volumes and any other relevant data to the NMDPRA or the NUPRC as applicable.  If deployed effectively, this database can mitigate information gaps, shape pricing trends in the Regulated Market, disperse market concentration and facilitate the shift towards a free market status.