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Nigeria’s revised gas transportation code builds on a 30 percent reduction in imbalances on the Western Network.
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Pipeline capacity is expected to rise from 2.2 billion to 4.4 billion cubic feet per day as major projects advance.
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NMDPRA estimates the oil and gas sector needs $30bn to $50bn in fresh investment by 2030.
October 29, (THEWILL) – The Nigerian Midstream and Downstream Petroleum Regulatory Authority has revised Nigeria’s gas transportation code to widen pipeline access for shippers, reduce avoidable losses and strengthen the framework for domestic and cross-border gas trade.
The Authority Chief Executive, Rabiu Umar, said Revision 2 of the Nigerian Gas Transportation Network Code would establish clearer rules for gas producers, shippers and transporters as the country expands its pipeline infrastructure.
Speaking at the 2026 OTL Africa Downstream Energy Week in Lagos, Umar said the first revision had increased the number of shippers using the network and reduced imbalances on the Western Network by about 30 percent.
“Since Revision 1, more shippers have come onto the network, and the imbalance on the Western Network has fallen by about 30 percent,” he said, urging shippers, transporters and investors to take advantage of the revised framework.
The network code governs how producers inject gas into shared pipelines, how volumes are measured and how shippers nominate the quantities they intend to transport.
Standardised procedures are intended to improve transparency, clarify responsibilities and reduce disputes among users of the infrastructure.
Pipeline expansion raises need for clear rules
Umar said the revised code would become increasingly important as projects such as the Obiafu-Obrikom-Oben (OB3) pipeline and the Ajaokuta-Kaduna-Kano (AKK) pipeline expand the country’s gas transportation capacity.
He said Nigeria’s pipeline capacity was expected to increase from 2.2 billion cubic feet per day to 4.4 billion cubic feet per day as major infrastructure projects were completed. The AKK pipeline was more than 80 per cent complete, according to him.
The additional capacity is expected to improve connections between southern gas supplies and demand centres in northern Nigeria, including power plants, manufacturing facilities and other industrial users.
However, expanding capacity alone will not eliminate operational losses.
Umar identified the shrinkage factor, the gas lost or consumed during transportation and processing, as an area requiring clear rules to ensure costs are properly accounted for and operators are protected.
“If your shrinkage factor is high, it’s like costs. If people are putting the wrong gas into the pipeline, it creates a problem that then leads to all kinds of avoidable losses,” he said.
The revised code is intended to clarify these technical and commercial requirements as more producers and shippers use shared infrastructure.
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Regional gas trade and investment
The NMDPRA also expects the revised framework to support cross-border gas transportation by improving consistency in measurement, communication and the transfer of custody between operators.
Nigeria already participates in regional gas trade through the West African Gas Pipeline, while proposed projects include the Trans-Saharan Gas Pipeline to Algeria and the pipeline project intended to link Nigeria with Morocco.
Umar said differences in national operating rules could complicate cross-border flows, making common procedures important to the development of interconnected regional networks.
“The pipelines deliver their full value only when access to them is open and fair,” he said.
He also linked the code to Nigeria’s broader objective of increasing domestic gas utilisation.
According to Umar, about three-fifths of the gas processed in September was consumed by midstream and downstream users, including electricity generators, manufacturers and other industries, while some was exported to neighbouring countries through the West African Gas Pipeline.
He said demand for liquefied petroleum gas, commonly known as cooking gas, exceeded supply, presenting opportunities for investment in local production and infrastructure.
Beyond pipelines, Umar said Nigeria needed fresh investment in gas processing, fertiliser production, liquefied petroleum gas and flare gas commercialisation.
He estimated that the oil and gas sector required between $30bn and $50bn in new investment by 2030.
The revised code is therefore part of a wider effort to attract investors and improve the commercial use of Nigeria’s gas resources.
Its impact will depend on implementation, continued infrastructure development, and whether clearer access rules translate into lower losses, more reliable deliveries, and greater participation by domestic and regional gas shippers.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
