The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has unveiled plans for a Gas Swap Framework aimed at bridging a persistent 35 per cent shortfall in domestic gas delivery, as new data shows that producers supplied an average of only 2.05 billion cubic feet (Bcf) of gas daily to the domestic market year-to-date through June 2026.
This was well below the 3.16 Bcf/d they were obligated to deliver under the Commission’s Domestic Gas Delivery Obligation (DGDO) framework.
NUPRC’s chief executive, Oritsemeyewa Eyesan, made this known at a stakeholders’ workshop in Abuja, lays bare the widening gap between the volumes of gas Nigerian producers are allocated to supply domestically and what is actually reaching homes, industries, and power plants across the country.
With compliance hovering at 65 per cent, the Commission is now pinning its hopes on a market-based swap mechanism that would allow operators with stranded or hard-to-evacuate gas to meet their obligations by leaning on the infrastructure of better-positioned producers — a move regulators said could finally convert paper obligations into physical supply.
The workshop was organised to deepen stakeholders’ understanding of the proposed Gas Swap Framework as a practical mechanism to support compliance to DGDO and obtain stakeholders’ input.
In her keynote address, the NUPRC boss who was represented by the executive commissioner, Development and Production, Enorense Amadasu, emphasised that DGDO remains one of the most important instruments for ensuring that gas produced in Nigeria supports the Nigerian economy.
The CCE, in her update, disclosed that out of about 63 producing companies, 27 were allocated DGDO, but only 23 of those allottees were actively supplying gas to domestic customers.
Eyesan further revealed that over the same period, average domestic gas delivery stood at 2.05 Bcf/d against 7C1 DGDO allocation of 3.16 Bcf/d, representing about 65 per cent performance.
She said, “The YTD June 2026 data, however, shows that a broader allocation base does not automatically translate into actual delivery.
“This delivery gap underscores the need for practical, innovative, and market-responsive solutions that protect the integrity of the obligation while enabling real physical delivery of gas to domestic users. It is in this context that the proposed Gas Swap Framework becomes especially important.”
The Commission boss maintained that the Gas Swap Framework provides a practical way for operators whose gas is stranded or difficult to evacuate to still meet their domestic delivery obligations, by working through operators that have the infrastructure to deliver gas where it is needed.
She added, “With the right commitment and implementation, the framework will help turn obligation into actual supply, make better use of existing assets, support gas-to-power delivery, and build greater confidence in Nigeria’s domestic gas market.”
We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →
Join Our WhatsApp Channel




