PIA Reforms Lift Nigeria’s Domestic Gas Sales By 30% – Report
Nigeria’s domestic gas market posted a roughly 30 per cent rise in sales between January 2022 and January 2025, a gain attributed to reforms under the Petroleum Industry Act 2021 and a series of executive orders signed by President Bola Tinubu, according to a legal analysis by Lagos-based law firm Tope Adebayo LP.
The firm said in a statement that the reforms have sharpened regulatory clarity, improved fiscal attractiveness and lifted investor confidence across the gas value chain, though it cautioned that infrastructure gaps and implementation hurdles continue to temper the pace of growth.
Nigeria holds more than 206 trillion cubic feet of proven gas reserves but has long struggled to convert that resource base into domestic energy supply due to underinvestment, weak infrastructure and gas flaring. Data cited in the report show domestic gas sales rose from 49.3bscf in January 2022 to 64.2bscf in January 2025, reflecting the gains tied to ongoing reforms.
The analysis, titled “From Policy to Practice: Legal and Regulatory Drivers of Nigeria’s Domestic Gas Market Under the PIA and Recent Executive Orders,” described the legislation as a turning point. “The PIA represents the most comprehensive reform of Nigeria’s petroleum sector in decades and has established a stronger foundation for domestic gas development through regulatory clarity, pricing liberalisation mechanisms, infrastructure support and enhanced investment incentives,” the firm stated.
It said structural changes under the Act, including the creation of separate regulatory authorities for upstream and midstream/downstream operations, have strengthened oversight and eased regulatory bottlenecks. The report singled out the Domestic Gas Delivery Obligation framework as one of the most significant interventions designed to raise supply to strategic sectors such as power generation and industry, noting that, unlike previous arrangements, it is backed by enforceable penalties for non-compliance.
The firm also pointed to gains in gas utilisation, modest reductions in flaring and the expansion of the Nigerian Gas Flare Commercialisation Programme, under which several flare sites have been auctioned for monetisation projects. Beyond supply measures, the PIA introduced open-access provisions for infrastructure, liberalised aspects of gas pricing, and established the Midstream and Downstream Gas Infrastructure Fund to support investments in processing, transportation, storage and distribution.
According to the analysis, recent executive orders and presidential directives have further improved the investment climate through tax incentives, faster contracting timelines and more flexible local content rules. “These interventions signal a deliberate effort by the government to improve project economics and enhance Nigeria’s competitiveness as a destination for gas investments,” the firm noted.
Still, it warned that policy wins alone cannot deliver the market’s full potential. “Large-scale outcomes remain constrained by persistent infrastructure gaps, payment risks within the power sector, legacy debts, and implementation inefficiencies. The transition from policy to practice is clearly underway, but it remains incomplete,” the firm stated.
It said a fully scalable market would require sustained investment in pipelines, processing facilities, transportation networks and distribution systems, alongside stronger institutional coordination. The foundations had been laid, it concluded, but unlocking the promise of the Decade of Gas initiative would depend on bridging the gap between legal design and operational reality.