Despite its abundant gas resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed that only 65 percent of the gas allocated to the domestic market gets to local consumers, saying Nigeria still has a huge deficit in meeting its domestic gas supply obligations.
The Commission’s Chief Executive, Mrs. Oritsemeyiwa Eyesan, said, the average domestic gas delivery was 2.05 billion cubic feet per day (Bcf/d) in the first half of 2026 against a Domestic Gas Delivery Obligation (DGDO) allocation of 3.16 Bcf/d, leaving a supply deficit of about 1.11 Bcf/d.
The figures underscore the persistent gap between the gas meant for domestic consumption and the quantities actually supplied to power stations, industries and other domestic users, prompting worries about the nation’s capacity to fully tap its gas reserves for economic expansion.
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While addressing stakeholders at a workshop on the proposed Gas Swap Framework for Domestic Gas Delivery Obligation in Abuja, Eyesan said that there were over 63 companies producing gas in Nigeria but only 27 companies were allocated domestic gas delivery obligations and only 23 are supplying gas to the domestic market.
She said the data shows that the more companies that are assigned domestic supply obligations, the more it does not necessarily mean that there will be actual gas delivery.
“The year-to-date June 2026 data shows that a broader allocation base does not necessarily translate into actual delivery. “This delivery gap underscores the need for practical, innovative and market-responsive solutions that protect the integrity of the obligation while enabling real physical delivery of gas to domestic users,” she said.
To bridge the widening gap, the regulator is putting in place a Gas Swap Framework that will allow producers unable to evacuate gas due to infrastructure constraints to meet their domestic obligations through other operators with existing transportation and delivery infrastructure.
