Nigeria delivered an average of 2.05 billion standard cubic feet (Bscf) of gas per day to the domestic market during the first half of 2026, but the volume still fell 35 per cent short of the country's Domestic Gas Delivery Obligation (DGDO), highlighting persistent infrastructure constraints despite ongoing regulatory reforms.
Figures released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that domestic gas deliveries averaged 2.05 Bscf per day between January and June 2026, compared to the allocated Domestic Gas Delivery Obligation of 3.16 Bscf per day. The shortfall of about 1.11 Bscf daily continues to limit gas availability for electricity generation, industrial manufacturing and other strategic sectors of the economy.
The Commission Chief Executive of the NUPRC, Oritsemiyewa Eyesan, disclosed the figures during a stakeholders' workshop on the proposed Gas Swap Framework for the Domestic Gas Delivery Obligation held in Abuja. Represented by the Executive Commissioner for Development and Production, Enorense Amadasu, Eyesan described the DGDO as one of the Federal Government's most important policy instruments for ensuring that Nigeria's abundant gas resources support domestic economic growth and industrialisation.
According to the commission, only 27 of Nigeria's approximately 63 producing companies were allocated Domestic Gas Delivery Obligations, while just 23 companies actively supplied gas to domestic customers during the review period. The regulator said the latest performance demonstrates that increasing the number of companies under the obligation does not necessarily translate into improved gas supply.
Instead, the commission identified infrastructure deficiencies, evacuation bottlenecks and commercial constraints as the major reasons producers continue to fall short of their domestic supply commitments. These operational challenges have left significant volumes of gas stranded, preventing allocated supplies from reaching power plants, manufacturers and other local consumers.
To close the supply gap, the NUPRC is proposing a Gas Swap Framework that would allow producers unable to evacuate their gas because of infrastructure limitations to fulfil their Domestic Gas Delivery Obligations through operators with existing transportation and delivery facilities. The regulator believes the arrangement will improve compliance, optimise existing gas infrastructure and increase the volume of gas supplied to the domestic market.
Eyesan said the framework is expected to convert regulatory obligations into actual gas deliveries, strengthen gas-to-power initiatives and improve confidence in Nigeria's domestic gas market. She urged producers, transporters and other industry stakeholders to collaborate in ensuring the initiative delivers measurable improvements in domestic gas availability.
The Domestic Gas Delivery Obligation forms part of the Federal Government's strategy to reserve a portion of Nigeria's gas production for local consumption, particularly for electricity generation and industrial development. The policy is central to Nigeria's ambition of leveraging its estimated 209 trillion cubic feet of proven gas reserves to drive economic diversification, expand industrial capacity and improve energy security.
However, the latest figures underscore that while Nigeria possesses one of Africa's largest gas reserves, inadequate infrastructure remains a major obstacle to unlocking its full economic potential. Industry observers say sustained investment in gas processing facilities, pipeline infrastructure and transportation networks will be critical to narrowing the delivery gap and ensuring domestic consumers benefit from the country's vast gas resources.