Abstract
Nigeria is blessed with extensive gas reserves and is one of the world’s largest producers of natural gas. Over a period of half a century, Nigeria has struggled to benefit from this resource particularly due to gas flaring, lack of infrastructure, regulatory inefficiencies, insecurity, pricing imbalance, among other factors. These challenges have stifled gas utilization in the country, severely affecting Nigeria’s gas economy. This unfortunate circumstance continued until the emergence of the Petroleum Industry Act (PIA), 2021, a law enacted to reform Nigeria’s oil and gas sector. It is on this premise that this paper using the doctrinal research methodology discusses if the PIA 2021 has indeed brought about much needed reform for gas utilization. This paper revealed that the answer is in the affirmative. Through institutional overhaul, new licensing regimes, fiscal incentives, domestic gas delivery obligation, new pricing mechanisms, the PIA has succeeded in encouraging increased investment in Nigeria’s gas sector, through infrastructural and expansion projects which has led to a boost in gas utilization. Of course, challenges are still present which are noted in this paper, but this paper recommends that through a conscious effort by the government to implement the PIA’s provisions and close existing gaps and loopholes such as incessant gas flaring, infrastructural gaps, pricing imbalance, gas utilization will be optimal.
Keywords: Gas Utilization, Natural Gas, Gas infrastructure, Nigeria Gas Master Plan, Nigeria Gas Policy