The federal government plans to end regulated domestic gas pricing and move fully to a willing buyer, willing seller system within the next one to two years, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

The authority’s chief executive, Rabiu Umar, announced the target at the Nigerian International Conference and Exhibition in Lagos. He said the Petroleum Industry Act already provides for the transition, but implementation must be tied to expanded infrastructure, open pipeline access and safeguards for consumers, particularly the power sector.

Domestic gas is currently priced at about $2.18 per thousand cubic feet for power generation and below $2 for gas based industries. Producers have argued that higher and commercially negotiated prices are needed to attract investment and expand supply.

Umar said the regulator would maintain the existing framework temporarily while promoting third party pipeline access and developing distribution zones along the OB3 and Ajaokuta Kaduna Kano pipelines. He also identified liquefied petroleum gas and compressed natural gas expansion as priorities.

At the conference, Shell Nigeria Exploration and Production Company urged Nigeria to provide policy stability and better funding access for local firms to unlock deepwater projects. Seplat Energy also called for a gas led industrialisation strategy built on reliable infrastructure, competitive costs and faster approvals.