The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has proposed a Gas Swap Framework designed to bridge a persistent 35 percent shortfall in domestic natural gas deliveries.
The regulatory body unveiled the plan as a market-based solution to address chronic supply deficits that have hampered power generation and industrial activity across the country.
05 billion cubic feet per day (bcfd) in the first half of 2026, falling significantly short of regulatory targets.
The proposal comes after suppliers delivered an average of only 2.05 billion cubic feet per day (bcfd) in the first half of 2026, falling significantly short of regulatory targets.
The swap mechanism is intended to incentivize producers to redirect gas volumes currently earmarked for export or flaring toward the domestic market, thereby stabilizing supply for key consumers.
Nigeria’s domestic gas sector has struggled with infrastructure bottlenecks and pricing disputes, leading to frequent curtailments for power plants and fertilizer manufacturers.
By introducing a swap framework, the NUPRC seeks to create a more flexible trading environment that aligns producer incentives with national energy security goals.