Gas
Nigeria gas market requires price liberalization, says Neconde chief
Neconde Energy Limited has warned that Nigeria must liberalize gas pricing and build a bankable market to attract necessary investments.
Key points
- Price controls and infrastructure deficits hinder Nigeria's domestic gas market growth.
- Gas exploration and production operations involve significant dollar-denominated costs.
- Industry experts advocate for full market liberalization to secure predictable investor returns.
Market constraints and investment hurdles
Nigeria risks stalling its domestic gas expansion unless the government removes price caps and establishes a reliable, paying market structure, according to Chichi Emenike, Acting Managing Director and Gas Asset Manager at Neconde Energy Limited. Speaking at the Association of Energy Correspondents of Nigeria conference, Emenike stated that capital providers require predictable returns rather than charity.
She noted that infrastructure limitations and regulated pricing remain primary obstacles for the sector. While alternative delivery methods such as compressed and liquefied natural gas are being explored, substantial volumes remain undeveloped due to inadequate pipeline networks.
Capital intensity and policy reforms
Gas development requires extensive capital outlay, covering deep-well drilling in the Niger Delta alongside processing and transport facilities. Because these operations rely entirely on foreign currency inputs and international financing, government-imposed pricing creates severe financial exposure for operators.
While recent legislative updates such as the Petroleum Industry Act have provided initial support, Emenike argued that further liberalization is essential to shift investor sentiment from caution to confidence. Industry stakeholders maintain that transparent contracts and guaranteed payment frameworks are vital for expanding energy access and driving economic growth.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
72.9% of electricity in Nigeria came from gas in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
