NMDPRA Approves Interim Gas Pipeline Tariff for NNPC

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has approved an interim transportation tariff for the Nigerian National Petroleum Company Gas Infrastructure Company Limited (NNPC GIC), effective July 1 to December 31, 2025.


In a statement on Monday, the regulator said the tariff — set at $1.13 per thousand standard cubic feet (Mscf) — was determined using the postage stamp methodology, which applies a uniform rate to all users regardless of distance or location.


The approval, issued under Sections 122 and 123 of the Petroleum Industry Act (PIA) 2021 and the Natural Gas Pipeline Tariff Regulations 2023, followed a detailed review of market conditions, affordability, and the need to ensure a fair return on investment.


The tariff covers six major gas networks:


• Escravos–Lagos Pipeline System (ELPS I & II)
• Oben–Ajaokuta
• Oben–Geregu
• Obiafu–Obrikom–Oben (OB3)
• Eastern Network
• Ajaokuta–Kaduna–Kano (AKK)

NMDPRA said it will complete stakeholder consultations during the interim period to adopt formal tariff methodologies. All licensees and stakeholders must implement the approved rate and comply fully with the PIA 2021 and the 2023 Tariff Regulations.

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