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By Adewale Sanyaolu and Adanna Nnamani, Abuja
Despite its abundant gas resources, Nigeria is still significantly short of meeting its domestic gas supply obligations, with only 65 per cent of the allocated gas reaching local consumers, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed.
The Commission’s Chief Executive, Mrs. Oritsemeyiwa Eyesan, said average domestic gas delivery stood at 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 gas allocated for domestic use and the volumes actually delivered to power plants, industries and other local consumers, raising concerns over the country’s ability to fully harness its gas resources to support economic growth.
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Speaking at a stakeholders’ workshop on the proposed Gas Swap Framework for Domestic Gas Delivery Obligation in Abuja, Eyesan revealed that while about 63 companies are producing gas in Nigeria, only 27 were allocated domestic gas delivery obligations, and just 23 are currently supplying gas to the domestic market.
According to her, the data demonstrates that increasing the number of companies allocated domestic supply obligations does not automatically translate into actual gas delivery.
“The year-to-date June 2026 data shows that a broader allocation base does not automatically 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 introducing a Gas Swap Framework that will allow producers unable to evacuate gas because of infrastructure constraints to fulfil their domestic obligations through other operators with existing transportation and delivery infrastructure.
