Critical Legal issues in the Nigerian Gas to Power Contractual Arrangements

Abstract

The natural gas and power sectors are pivotal sectors of the Nigerian economy with reflective effect on its gross domestic product. The Federal Government in its gas revolution agenda is taking giant strides to reposition the sector to more adequately harness its abundant natural gas resources and ensure availability of natural gas to the domestic market with the gas supply to the power sector being regulated to build base load volumes to ensure stable electricity supply to its citizens. The synergic connection of the gas and power sectors can only validly exist upon legitimate contractual arrangements such as the gas sale and purchase agreement, the gas transport agreement and the gas sale aggregation agreement which is unique to Nigerian domestic gas industry. Out of these arrangements flow pertinent legal issues which define clearly the relations between the parties. This paper therefore throws more light on some of these salient issues which arise pursuant to the respective agreements. It is hoped that this discourse would guide and further facilitate a deeper understanding of these critical terms.