Nigeria’s Gas Sector Witnesses Remarkable Transformation, Says Minister Ekpo
At the opening ceremony of the 8th Nigeria International Energy Summit (NIES) in Abuja, Hon. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), highlighted the significant progress in Nigeria’s gas sector, citing substantial advancements in infrastructure, policy reforms, and domestic utilization initiatives.
Addressing policymakers, investors, and industry experts, Ekpo emphasized the summit’s theme, “Bridging Continents: Connecting Investors Worldwide with Africa’s Energy Potential,” as a call for collaboration and strategic partnerships to unlock Africa’s vast energy resources.
Milestones in Nigeria’s Gas Sector
Ekpo noted that in the past two years, Nigeria’s gas sector has witnessed remarkable growth, aligning with President Bola Ahmed Tinubu’s Decade of Gas Initiative (DOI). Launched in 2021, the DOI seeks to transform Nigeria into a leading gas-powered economy by 2030 through infrastructure expansion, increased domestic utilization, and export growth.
Key Infrastructure Developments
One of the flagship projects in the national gas expansion drive is the Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline. Spanning 614 kilometers and costing $2.8 billion, the AKK pipeline aims to enhance gas supply to key industrial hubs across Nigeria, with completion expected in 2025.
The enactment of the Petroleum Industry Act (PIA) in 2021 has also been a game changer, fostering a more competitive and transparent oil and gas industry. Nigeria has successfully commercialized NNPC, established host community development trusts, and issued its first petroleum exploration license under the PIA.
Investment in LNG and Gas-Based Industries
In September 2024, Nigeria granted UTM Offshore Limited the first-ever license for a floating liquefied natural gas (LNG) plant. This project, in partnership with Seplat’s Oil Mining Lease 104, will produce 2.8 million metric tons per annum (MTPA) of LNG and 500,000 metric tons of liquefied petroleum gas (LPG), boosting Nigeria’s export capacity while reducing gas flaring.
October 2024 marked another milestone as Shell, TotalEnergies, and Eni signed an agreement to supply 270 million standard cubic feet of gas per day to the $3.5 billion Brass fertilizer and petrochemical plant in Bayelsa State. The initiative is projected to generate $1.5 billion in export revenue annually, reduce fertilizer imports by 30%, and save Nigeria approximately $200 million in foreign exchange.
Promoting Affordable and Sustainable Energy
In response to the removal of fuel subsidies in 2023, the government launched a nationwide Compressed Natural Gas (CNG) initiative to offer cost-effective and environmentally friendly transportation alternatives. With 100,000 vehicles targeted for conversion and a $200 million investment in CNG infrastructure, the initiative aims to cut transportation costs and promote sustainability.
Additionally, in September 2024, the Federal Government, through the Midstream Downstream Gas Infrastructure Fund (MDGIF), invested 122 billion naira into six companies to transform Nigeria’s gas value chain and accelerate development.
The Future of Nigeria’s Gas Sector
Ekpo reaffirmed Nigeria’s commitment to leveraging natural gas as a catalyst for economic growth, industrialization, and energy transition. He called on stakeholders to use NIES 2025 as a platform to forge new partnerships, explore innovative financing mechanisms, and fast-track gas sector development.
“With collective effort, we can harness the potential of our abundant gas resources to drive Africa’s economic renaissance and position Nigeria as a global energy hub,” he concluded.
