The Federal Government has announced plans to end regulated gas pricing by 2028 as part of ongoing reforms aimed at creating a more competitive and investment-friendly gas market.

The move is expected to transition Nigeria’s gas sector from a government-controlled pricing framework to a market-driven system where prices are determined by supply and demand.

Officials said the reform is designed to attract greater private-sector investment, encourage gas production and improve the long-term sustainability of the industry.

The government noted that regulated pricing has played a role in supporting domestic gas supply over the years but argued that a gradual transition to a fully liberalised market is necessary to unlock the sector’s full potential.

According to authorities, the planned deregulation will be implemented in phases to allow industry participants, consumers and investors adequate time to adjust to the new framework.

The government also expressed confidence that the reform would stimulate additional investments in gas infrastructure, processing facilities, transportation networks and distribution systems.

Officials said Nigeria’s vast gas reserves position the country to become a major global gas producer, but sustained investment is required to maximise the opportunities available in the sector.

The policy is expected to support broader objectives of increasing domestic gas utilisation, expanding industrial activity, improving electricity generation and strengthening energy security.

Industry stakeholders have welcomed efforts to create a more predictable and commercially viable market, while emphasising the need for clear regulations and a smooth transition process.

The government said it would continue engaging investors, producers and consumers to ensure that the transition to full gas price deregulation is carried out effectively and without major disruptions.

Authorities also maintained that reforms in the gas sector remain a key part of efforts to diversify the economy, attract investment and accelerate industrial development.

The planned 2028 deadline is expected to mark a significant shift in Nigeria’s energy policy as the country moves toward a fully market-based gas pricing system.