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Policy & Regulation

Nigeria’s new gas policy could see pricing change

Gas prices for the Nigerian power sector could be market-led if the policy results in new legislation Gas prices for the Nigerian power sector could be market-led if the policy results in new legislation.
By Miriam Malek 24 July 2017 Middle East & Africa / Policy & Regulation 0 26882
Construction work on a Nigerian power plant. (Azura Power)

Nigeria’s new national Gas Policy calls for a shift towards “market-led” gas pricing, but industry sources are unsure what this means and how it will be achieved.

The policy, which was approved earlier this month, outlines the government’s aims for gas in the coming years and could pave the way for new legislation. It is designed to reduce Nigeria’s reliance on oil by increasing exploration for and domestic use of gas.

One of the clauses within the policy states: “The policy objective is that wholesale gas pricing...