• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Opinions Blurb

This is a copy of the FG approved National Gas Policy

Nairametrics by Nairametrics
July 6, 2017
in Blurb, Spotlight
This is a copy of the FG approved National Gas Policy
Share on FacebookShare on TwitterShare on Linkedin

Last week the Federal Government approved the new National Gas Policy. The new Gas Policy’s main objectives is to transform Nigeria from a crude oil export-based economy to an attractive oil and gas-based industrial economy.

It is also meant to extend gas penetration in the domestic market in order to facilitate the growth
of the electric power, agricultural, industrial and transportation sectors. The power sector for example, relies on gas to generate electricity. It is also meant to help gain a presence for Nigerian gas in international markets.

Immediate benefits of a Gas based economy

RelatedStories

Why your “house” is not an investment

Why your “house” is not an investment

July 29, 2019
Toothpaste brands in Nigeria

What we learnt comparing Close-Up and Oral-B Toothpaste

April 5, 2018
  • Nigeria is said to have the world’s ninth largest proven gas reserves, at 187 trillion cubic feet.
  • A revised policy that is focused on pivoting to a gas based economy could increase Nigeria’s foreign exchange earnings which currently relies mainly on crude oil exports.
  • With a new Gas policy, the incessant epileptic power supply, mostly caused by cut in gas supply to power generating companies could reduce drastically. This will ensure that power generation is at least steady, giving more generators the incentives to generate more power to the grid.
  • It could also help improve investments in fertilizer based manufacturing, gas based transportation etc.
  • With this new policy, Nigeria now has a third tier sector in its Oil and Gas setup. Upstream which is for crude oil, downstream which is for oil marketing and refining, and then midstream which is for gas.
  • The policy  is also aimed at dividing the Nigeria Gas Company into separate transport and gas marketing companies and introduce “market-led wholesale gas pricing” after a transitional period.
  • According to the policy, domestic gas prices, which had been a thorny issue for gas producers, will now be priced at The average export market price less the costs of regasification, shipping and liquefaction.
  • This pricing will remain in the transition period before morphing into a pricing determined solely by the market.
  • The policy also requires that upstream licenses will now include a condition to provide gas to the domestic market subject to the limit of their obligation.
  • According to the report, even against subsidised kerosene a consumer of kerosene will spend N130 per litre for fuel compared with N89 the same consumer will spend on unsubsidized LPG. As such, a gas policy to provides an enabling environment for increased domestic gas usage will increase demand and provide a greater economies of scale, which will further reduce the price of LPG.
  • Despite this obvious benefits, LPG usage in Nigeria is low as about 30 million households still rely on firewood to cook. Reasons cited are high cost of buying cooking gas equipment such as cylinders, cookers etc.
  • The initial cost of acquiring a LPG cooking pack (cylinders, stoves, regulators etc.) as compared to other fuels is higher. Not only are the LPG cylinders specialised, but they are also subjected to import taxes even though domestic production capacity is presently limited.
  • Also,  VAT is levied on domestic production of LPG and LPG cylinders but not on imported cylinders.
  • The policy is targeted at ensuring that introducing a tax policy that ensures cooking gas market is not put at a disadvantage.

You can download the Gas Policy below

Download (PDF, 15.5MB)

Tags: 7bigwinsDeepdiveGas PolicyNigeria Has Policy
Nairametrics

Nairametrics

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

Related Posts

Why your “house” is not an investment
Markets

Why your “house” is not an investment

July 29, 2019
Toothpaste brands in Nigeria
Metrics

What we learnt comparing Close-Up and Oral-B Toothpaste

April 5, 2018
Saving Money
Financial Literacy

11 money saving apps you need to download now

March 23, 2018
Jessica Castro via Unsplash
Spotlight

Mouka Foam Vs Vitafoam; We have one clear winner

March 22, 2018
Waste Management and Recycling in Nigeria
Small Business

Recycling: How these small businesses make millions selling aluminium monthly

March 19, 2018
GTBank announces close period ahead of Q3 2019 results
Blurb

Digging into GTB’s Monstrous 2017 result

March 16, 2018
Next Post
Investors express disdain over NIPCO/Mobil MTO cut-off date

NIPCO has extended its MTO deadline by one month

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • South-West doctors threaten strike over unfavorable allowances, issue 21-day ultimatum to FG
  • 15 things you don’t need to start a business in Nigeria 
  • NNPC, Akwa Ibom, GACN sign $3.5 billion gas agreement

Follow us on social media:

Recent News

Doctors

South-West doctors threaten strike over unfavorable allowances, issue 21-day ultimatum to FG

July 15, 2025
Small Business

15 things you don’t need to start a business in Nigeria 

July 15, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics