Gas
NMDPRA launches revised gas network code to drive trade
The Nigerian petroleum regulator has introduced an updated gas transportation network code designed to improve market efficiency and encourage infrastructure investment.
Key points
- NMDPRA launched Revision 2 of the Gas Transportation Network Code during an industry event in Lagos.
- The updated framework introduces clearer rules for fuel measurement, nominations, and transit transparency.
- Officials reported a 30 per cent decline in operational imbalances on the western network since the first version.
What happened
According to reports from Head Topics and EnviroNews Nigeria, the Nigerian Midstream and Downstream Petroleum Regulatory Authority has rolled out the second iteration of its national gas transportation framework. The unveiling took place in Lagos during the twentieth edition of the OTL Africa Downstream Energy Week, which was held under the theme of secure energy and shared prosperity.
Rabiu Umar, heading the regulatory agency, explained that the updated framework establishes enhanced guidelines for fuel measurement, shipment nominations, and transit operations. These adjustments are designed to boost overall market transparency and coordination among network participants. Umar added that shipper participation has grown since the rollout of the initial version, noting that operational imbalances across the western pipeline network have decreased by 30 per cent.
Stakeholder perspectives
Speaking on behalf of the Presidency, Olu Verheijen stressed that predictable regulations are crucial for unlocking capital to build essential midstream assets and expand domestic gas utilisation. Mumuni Dagazau, representing the state oil company, pointed out that regional cooperation and robust stakeholder coordination remain vital for successful energy integration and cross-border trade.
Furthermore, Tunji Oyebanji emphasised that efficient logistics and regional commercial partnerships will heavily influence the growth of African downstream markets. Industry leaders at the gathering agreed that robust midstream operations are foundational for reliable power generation and broader industrial development.
Why it matters
Energy sector stakeholders across the continent are closely monitoring regulatory developments in Nigeria's midstream sector as domestic gas commercialisation expands. With global gas pricing benchmarks remaining steady—such as the Henry Hub spot price recorded at 3.1 US dollars per MMBtu by the US Energy Information Administration on October 20, 2026—clear operational frameworks are essential for establishing predictable local pricing and attracting foreign direct investment.
Furthermore, with the naira referencing 1334.30 per US dollar, the regulatory certainty provided by revised network codes becomes paramount for investors managing foreign exchange exposure while deploying capital into capital-intensive midstream infrastructure projects. Enhancing network efficiency directly supports domestic power generation and industrial expansion, positioning the nation to better leverage its vast hydrocarbon resources for sustainable economic development.
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.
21.9% of electricity in the world 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.
