NMDPRA Seeks Stakeholders’ Input on Gas Tariff Methodologies
The authority said the consultation was in compliance with Sections 32, 123(3), (4) and (5) of the Petroleum Industry Act (PIA) 2021, which require stakeholder engagement before establishing tariff methodologies.
In a notice signed by the Authority Chief Executive, Rabiu Abdullahi Umar, the regulator said the proposed methodologies would guide tariffs charged by licensed operators for the use of facilities and infrastructure in midstream gas operations.
The NMDPRA said submissions were expected to address the principles and structure of the proposed tariff methodologies, recovery of reasonable and efficiently incurred costs, and determination of reasonable returns on invested capital.
Other areas for consultation include efficiency incentives, mechanisms for improving service quality and tariff structures applicable to gas processing facilities, transportation pipelines and distribution licences.
The authority also requested stakeholders’ views on charges relating to gas allocation, metering and ancillary services, as well as measures to prevent economic distortions and promote competition in the petroleum and natural gas markets.
It further invited submissions on possible tariff differentiation for creditworthy shippers willing to enter into long-term ship-or-pay arrangements.
Interested stakeholders have been directed to visit the authority’s website to review the proposed tariff methodology consultation paper.
The regulator said submissions must identify the stakeholder and organisation, provide contact details, contain an executive summary and clearly indicate the aspects of the proposed methodology being addressed.
Submissions must also specify whether any part of the document is confidential and provide the basis for such confidentiality.
The NMDPRA said written submissions, using the prescribed format available on its website, should be sent to the Executive Director, Economic Regulations and Strategic Planning Directorate, through nmdpra-pricingandtariff@nmdpra.gov.ng.
The deadline for submissions is December 9, 2026, while the stakeholders’ consultation meeting is scheduled to hold in Abuja on January 6, 2027, at 10:00 a.m.
