The Nigerian Midstream and Downstream Petroleum Regulatory Authority has said it newly launched revised gas transportation code is aimed at improving access to pipelines for gas shippers, reducing avoidable losses and strengthening the framework for transporting gas across Nigeria and other African countries.

The Authority Chief Executive, Rabiu Umar, disclosed this at the 2026 OTL Africa Downstream Energy Week in Lagos,

Umar said the Revision 2 of the Nigerian Gas Transportation Network Code will establish clearer rules for shippers and transporters using the country’s gas pipeline network, particularly as new infrastructure expands transportation capacity.

He said the revision builds on progress recorded since the introduction of the first version of the code, including a reduction in the imbalance on the Western Network.

“Since Revision 1, more shippers have come onto the network, and the imbalance on the western network has fallen by about 30 per cent. Revision 2 builds on these gains, and I invite every shipper, transporter, and investor to make full use of that,” he said.

According to him, the network code provides rules governing how gas producers inject gas into shared pipelines, how volumes are measured and how shippers nominate the quantities they intend to transport through the network.

Umar stated that the rules are necessary because different producers used the same pipelines to transport gas, making standardised procedures essential to ensure transparency and prevent disputes.

“The network code basically is a rule book for gas transmission. As we know, there’s one pipeline that different producers put their gas into, and for that to be applicable, there needs to be a code, or if you like, rules of engagement on how you put your gas inside, how the gas is measured, and how you nominate gas into the network,” he said.

He said the revised code will also clarify the rules governing gas transportation as the country expands its pipeline infrastructure, including the Ajaokuta-Kaduna-Kano pipeline.

According to him, the code will help address technical and commercial issues that could lead to losses when gas moved through shared infrastructure.

He identified the shrinkage factor, which covers gas lost or used during transportation and processing, as one of the areas requiring clear regulations to safeguard operators and enhance operational efficiency.

“If your shrinkage factor is high, it’s like costs. If people are putting the wrong gas into the pipeline, it creates a problem that then leads to all kinds of avoidable losses,” Umar said.

He added that the revised code will also support the development of cross-border gas transportation by providing a common framework for handling gas flows between countries.

Umar noted that Nigeria already participated in regional gas transportation through the West African Gas Pipeline, while proposed projects included the Trans-Saharan Gas Pipeline to Algeria and the Trans-African pipeline to Morocco.

He said differences in operating rules between countries could complicate cross-border transportation, making common standards and procedures necessary to ensure smooth gas flows.

“There is no way you will have gas crossing borders from one country to another if the rules of engagement are different,” he said.

He added that a common network code will help ensure consistency in gas measurement, communication and custody transfer as gas moved across national borders.

Umar stressed that the revision is an important step towards establishing a framework that could support wider regional gas trade and the development of interconnected pipeline networks.

“The pipelines deliver their full value only when access to them is open and fair,” he stated.

The NMDPRA chief also linked the revised code to Nigeria’s wider ambition to increase domestic gas utilisation, attract investment and improve energy access.

He disclosed that approximately three-fifths of the gas processed in September was consumed by the midstream and downstream sectors, including electricity generation, manufacturing and other industrial activities, while a portion was exported to neighbouring countries through the West African Gas Pipeline.

Umar noted that demand for cooking gas currently outstrips supply, adding that the shortfall presents an investment opportunity for businesses seeking to expand local production and infrastructure.

He emphasised that the completion of major pipeline projects would increase Nigeria’s gas transportation capacity from 2.2 billion cubic feet per day to 4.4 billion cubic feet per day, linking gas supplies in the southern part of the country with demand in the North.

The projects include the OB3 pipeline and the Ajaokuta-Kaduna-Kano pipeline, which he said was more than 80 per cent complete.

Umar said the additional capacity would help connect more gas supplies to power plants, industries and other users, supporting economic activity and creating opportunities for investment across the gas value chain.

He, however, said unlocking Nigeria’s gas potential would require fresh investment in processing facilities, pipelines, fertiliser production, liquefied petroleum gas and flare gas commercialisation.

The NMDPRA chief estimated that the oil and gas sector required between $30bn and $50bn in new investment by 2030 to develop these opportunities.

He urged gas shippers, transporters and investors to take advantage of the revised network code and the expanding infrastructure to deepen participation in the domestic market and regional gas trade.