An Examination of the Nigerian Gas Law and Policy: Facilitating Domestic Gas

Abstract

The Federal Government of Nigeria based on its sizable gas reserves, identified the need for accelerated development of the gas industry as a focal strategy for achieving the national aspiration of aggressive GDP growth. Endowed with energy resources, Nigeria has about 188tcf of proven reserves. Active power plants are mainly gas-fired, but they face feedstock shortages, as a result of a dearth of infrastructure investment. Nigeria’s gas industry is still in its infant stage unlike the UK and US. Oil and gas companies have historically flared natural gas into the environment mainly because it was considered an oil by-product and not an economic product. The development of a domestic market today is the top of the government's agenda. The Federal Government recently approved the Nigerian National Gas Policy 2017. The goal as highlighted in the policy is the commercialization of gas to boost the economy, electricity undoubtedly being central to economic growth. This paper discusses, gas pricing, unbundling and open access and the Domestic Gas Obligation. The purpose of this study is to highlight various areas of improvement and provide an analysis of existing laws and policy. Results suggest that market liberalization and increase in private sector involvement are the two strengths agreed upon. In addition, the participants concur on the importance of increasing share of LNG in the total natural gas supply.