National Gas Policy 2017 (NGP)

What Is This Policy?

The National Gas Policy (NGP) is Nigeria's strategic framework to reposition the country as an attractive, gas-based industrial nation — transforming natural gas from an oil by-product into the primary driver of Nigeria's domestic industrial, power, agriculture, and transport sectors, while developing a significant international market presence.

Who Does It Target?

Upstream gas producers, midstream infrastructure operators, and downstream gas marketers and distributors Power generation companies dependent on gas feedstock Industrial, agricultural, commercial, and transportation sector gas consumers International and domestic investors in the gas sector Gas-dependent host communities in the Niger Delta and other gas-producing regions

What Does It Aim to Achieve?

Transform Nigeria from a crude oil export-based economy to a gas-based industrial economy Prioritise domestic gas supply to power the electricity sector, industry, agriculture, and transportation Establish a full separation of upstream, midstream, and downstream gas sectors with clear institutional mandates Develop a wholesale, market-led gas pricing framework replacing distortionary administered prices End routine gas flaring Nigeria endorsed the World Bank's Zero Routine Flaring by 2030 initiative

Key Features

Sector Separation: Full legal separation of upstream gas production, midstream infrastructure ownership, and downstream gas marketing/trading Open Access Infrastructure: Prescribes open access to gas pipelines and infrastructure to promote competition and efficient utilization Market-Led Pricing: Transitional pricing framework retained until sufficient supply volumes enable a mature wholesale gas market Gas-to-Power Priority: Power sector designated the priority domestic end-use sector, consuming over 70% of domestically produced gas Flare Gas Capture: Mandates flare capture utilization projects and substantially raised flaring penalties; supports Nigeria Gas Flare Commercialization Programme (NGFCP) Local Content & Capacity: Commits to developing domestic human and technical capacity to global export standards

Current Status

In force, as it was established in 2017 and outlines ongoing strategies for the gas sector.

Legal Framework

Petroleum Industry Act 2021 (implementing legislation for the policy); Energy Commission of Nigeria Act; Petroleum Profits Tax Act; Constitution of the Federal Republic of Nigeria 1999 (Section 44(3)); Nigerian Oil and Gas Industry Content Development Act 2010