…Natural gas as a catalyst for Nigeria’s economic growth
-Felix Douglas
In his gas industry address, at the opening ceremony of the 8th Nigeria International Energy Summit (NIES), Hon. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), explained that the event is a foremost gathering of policymakers, investors, and industry experts which is a testament to shared vision for a sustainable and prosperous energy future in Nigeria and across the African continent.
Ekpo posited that the theme for this year’s summit, “Bridging Continents: Connecting Investors Worldwide with Africa’s Energy Potential,” underscores the significance of collaboration and strategic partnerships in unlocking Africa’s vast energy resources.
In his words he said, “This Gas Industry address will focus on infrastructure projects, policy and regulatory reforms, gas utilization and export initiatives, domestic gas initiatives and a vision for the future.”
The Minister stated that over the past two years, Nigeria’s gas sector has undergone remarkable transformation, marked by substantial advancements in infrastructure, policy reforms, gas utilization, and domestic initiatives. These milestones highlight the unwavering commitment to the renewed hope agenda of President Bola Ahmed Tinubu administration through maximizing abundant natural gas resources to drive economic growth, enhance energy security, and support the global transition towards cleaner energy solutions.
In recognition of natural gas as a catalyst for Nigeria’s economic growth, Presiden Tinubu has reaffirmed the government’s commitment to the Decade of Gas Initiative (DOI). Launched in 2021, this policy aims to position Nigeria as a leading gas-powered economy by 2030 through infrastructure expansion, increased domestic utilization, and export growth. Key projects include pipeline development, gas-based industries, and gas-to-power initiatives. The government is also attracting investment in LNG, CNG, and gas-to-chemicals.
By fostering a business-friendly environment, Nigeria is building a sustainable gas ecosystem that drives industrialization, job creation, and energy security, ensuring a cleaner and prosperous future, the Minister added.
Ekpo noted that the Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline remains a flagship project in Nigeria’s national gas expansion drive. The AKK pipeline—spanning 614 kilometers—will enhance gas supply to key industrial and commercial hubs across Nigeria. With an expected completion date of 2025, this $2.8 billion initiative is poised to stimulate industrialization, create jobs, and attract investments in manufacturing and power generation.
The landmark enactment of the Petroleum Industry Act (PIA) in 2021 laid the foundation for a more competitive and transparent oil and gas industry. Over the past two years, the country has successfully commercialized NNPC, established host community development trusts, and issued the first petroleum exploration license under the PIA. These reforms have fostered regulatory certainty and improved investor confidence in the gas sector.
In September 2024, Ekpo disclosed that Nigeria achieved another milestone by granting UTM Offshore Limited the first-ever license for a floating liquefied natural gas (LNG) plant. This innovative project will process gas from Seplat’s Oil Mining Lease 104, producing 2.8 MTPA of LNG and 500,000 metric tons of liquefied petroleum gas (LPG), effectively reducing gas flaring and enhancing Nigeria’s export capacity.
The Minister stated further that in October 2024, agreement between Nigeria and international energy giants—Shell, TotalEnergies, and Eni—will supply 270 million standard cubic feet of gas per day to the $3.5 billion Brass fertilizer and petrochemical plant in Bayelsa State. This initiative is expected to generate $1.5 billion annually in export revenue, reduce fertilizer imports by 30%, and save Nigeria approximately $200 million in foreign exchange annually.
In response to the removal of fuel subsidies in 2023 and the resultant surge in petrol prices, the government launched a nationwide CNG initiative to provide cost-effective and environmentally friendly transportation alternatives. With over 100,000 vehicles targeted for conversion and a $200 million investment in CNG infrastructure, this program is crucial in reducing transportation costs and promoting energy sustainability.
Also in September 2024, the Federal Government of Nigeria, through the Midstream Downstream Gas Infrastructure Fund (MDGIF), invested 122 billion naira as equity participation into six companies with the aim of transforming the gas value chain in the country.
Ekpo was of the view that Nigeria is steadfast in its commitment to leveraging natural gas as a catalyst for economic growth, industrialization, and energy transition. The initiative has been undertaken over the past two years reflect the country’s dedication to creating an enabling environment for investment, innovation, and sustainable energy solutions.
He urged stakeholders to use NIES 2025, as an opportunity to forge new partnerships, explore innovative financing mechanisms, and accelerate the development of Nigeria’s gas sector. “Together, we can harness the potential of our abundant gas resources to drive Africa’s economic renaissance and position Nigeria as a global energy hub.”
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