ABUJA, June 15 – Nigeria’s domestic gas market expanded by nearly 30 per cent between January 2022 and January 2025, with recent reforms helping to improve supply, attract investment and strengthen confidence across the sector, according to a new legal analysis.
The report showed that domestic gas sales increased from 49.3 billion standard cubic feet (bscf) in January 2022 to 64.2bscf by January 2025, reflecting the impact of reforms introduced under the Petroleum Industry Act (PIA) 2021 and subsequent executive orders issued by President Bola Tinubu.
Nigeria holds more than 206 trillion cubic feet of proven gas reserves but has historically struggled to translate that resource advantage into reliable domestic energy supply due to weak infrastructure, underinvestment and persistent gas flaring.
In its report, titled From Policy to Practice: Legal and Regulatory Drivers of Nigeria’s Domestic Gas Market Under the PIA and Recent Executive Orders, the Lagos-based law firm said the PIA had reshaped the regulatory landscape by creating separate oversight bodies for upstream and midstream operations, helping to reduce bottlenecks and improve clarity for investors.
The analysis also pointed to the Domestic Gas Delivery Obligation framework as a major driver of supply to critical sectors, including power generation and industry, backed by penalties for companies that fail to meet their commitments.
In addition, the report highlighted open-access infrastructure rules, partial gas pricing liberalisation and the Midstream and Downstream Gas Infrastructure Fund as measures designed to support investments in processing, transportation and distribution.
However, it noted that significant hurdles remain. Infrastructure gaps, payment challenges within the power sector, legacy debts and implementation delays continue to slow progress.
According to the firm, while the foundation for growth has been laid, sustained investment and consistent execution will be needed to unlock the full potential of Nigeria’s Decade of Gas ambitions.
