The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has approved an interim gas transportation tariff of $1.13 per thousand standard cubic feet (Mscf) for the NNPC Gas Infrastructure Company Limited (NGIC).
The tariff is scheduled to take effect from July 1 to December 31, 2025, and will apply across all six major gas pipeline networks in the country. According to the NMDPRA, this temporary rate is part of a transition phase, during which the Authority will engage with stakeholders to finalize a long-term pricing framework for gas transport.
The interim tariff, which was set in line with the Petroleum Industry Act (PIA) 2021 and the Natural Gas Pipeline Tariff Regulations 2023, is based on a postage stamp model. This means the same rate will apply to all users regardless of how far the gas travels, a move aimed at simplifying billing and ensuring fairness.
The pipelines covered under the new rate include:
- Escravos–Lagos Pipeline System (ELPS I & II)
- Oben–Ajaokuta
- Oben–Geregu
- Obiafu–Obrikum–Oben (OB3)
- The Eastern Network
- Ajaokuta–Kaduna–Kano (AKK) Pipeline System
NMDPRA stated that the decision followed a thorough market review and was aimed at improving the commercial viability of Nigeria’s gas transport system. The uniform rate is also expected to help stabilize operations by allowing payment flexibility, particularly in addressing currency-related challenges faced by operators.
Industry players and licensees have been directed to adopt the interim tariff in all applicable transactions, in line with existing regulations.
