Revisions under the Petroleum Industry Act 2021 and subsequent executive orders by President Bola Tinubu caused Nigeria’s domestic gas market to see a notable boost in sales, climbing by around 30% between January 2022 and January 2025, according to a legal analysis by Tope Adebayo LP.
In a statement provided to our correspondent, the Lagos-based full-service law firm stated that although infrastructure deficiencies and implementation difficulties continue to impede growth, the reforms have enhanced regulatory clarity, fiscal attractiveness, and investor confidence throughout the gas value chain.
It said that underinvestment, inadequate infrastructure, and gas flaring have long made it difficult for Nigeria, which possesses more than 206 trillion cubic feet of known gas reserves, to turn its resource base into a domestic energy supply.
Domestic gas sales increased from 49.3bscf in January 2022 to 64.2bscf in January 2025, according to data quoted in the paper, demonstrating the benefits ascribed to ongoing PIA changes.
According to the research, the legislation was a game-changer for the industry.
In a report titled “From Policy to Practice: Legal and Regulatory Drivers of Nigeria’s Domestic Gas Market Under the PIA and Recent Executive Orders,” the firm said that the PIA is the most comprehensive reform of Nigeria’s petroleum sector in decades and has strengthened the foundation for domestic gas development through pricing liberalization mechanisms, infrastructure support, and improved investment incentives.
It clarified how the Act’s structural changes, such as the establishment of distinct regulatory bodies for upstream and midstream/downstream activities, had improved oversight and decreased regulatory bottlenecks.
The Domestic Gas Delivery Obligation framework was also emphasized in the analysis as a crucial intervention meant to increase supply to vital industries including industrial and power production. Penalties for non-compliance are enforceable under the framework.
Along with slight decreases in gas flaring and the growth of the Nigerian Gas Flare Commercialization Program, which it claimed had seen several flare sites put up for auction for monetization projects, it also highlighted improvements in gas utilization and supply performance.
It claimed that in addition to output measures, the PIA established open-access infrastructure provisions, partially liberalized gas prices, and created the Midstream and Downstream Gas Infrastructure Fund to encourage investments in distribution, processing, and transportation.
According to the law firm, tax advantages, quicker contracting timeframes, and more flexible local content implementation are just a few of the ways that recent executive orders and presidential directives have improved the investment climate.
According to Tope Adebayo LP, “these interventions signal a deliberate effort by the government to improve project economics and enhance Nigeria’s competitiveness as a destination for gas investments.”
But the company cautioned that regulatory improvements by themselves won’t be enough to realize the market’s full potential.
“Persistent infrastructure gaps, payment risks in the power sector, legacy debts, and implementation inefficiencies continue to limit large-scale outcomes.” It said that although the shift from policy to practice is undoubtedly happening, it is still unfinished.
The analysis indicates that ongoing investment in pipelines, processing facilities, transportation networks, and distribution systems, together with improved institutional coordination and consistent regulatory execution, will be necessary to achieve a fully operational and scaled domestic gas market.
According to the research, although the groundwork had been established, sustained market reforms and successful execution would be necessary for long-term success. It further stated that Nigeria needs to close the gap between operational reality and legal design in order to realize the full potential of the Decade of Gas project.
