Nigeria is targeting a stronger position in the West African gas market through a $100 billion development programme aimed at expanding domestic gas utilisation, infrastructure and export capacity.
Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Rabiu Abdullahi Umar, says the country is pursuing investments and regulatory reforms to move beyond gas exports and increase supply to power plants, factories and other domestic users.
Speaking on Nigeria’s energy outlook, Umar described the country’s ambition as becoming a gas-driven economy, emphasising the need to develop its vast gas resources for both domestic consumption and international markets.
The government’s Decade of Gas Initiative, a ten-year programme, comprises 96 projects valued at more than $100 billion. The initiative seeks to expand gas utilisation across power generation, manufacturing, fertiliser production and petrochemicals.
Infrastructure development remains central to the strategy. Key projects include the OB3 pipeline, which has crossed the River Niger, and the more than 600-kilometre Ajaokuta-Kaduna-Kano (AKK) pipeline, designed to connect gas supply sources with growing demand in northern Nigeria.
Umar said the AKK pipeline could also support future trans-African gas transportation routes towards Morocco or Algeria.
On the export front, an expansion project at Nigeria LNG is expected to add approximately eight million tonnes of annual production capacity when commissioned in 2027.
Nigeria is also pursuing reforms to improve access to its gas transportation network. Umar said revised network rules are intended to make pipeline capacity booking and allocation more transparent, with interest in using the network reportedly increasing by nearly 30 per cent.
The country is targeting a transition from regulated gas prices towards a more open market, with a winning buyer, winning seller framework expected by 2028.
However, Umar noted that attracting investment would require long-term commercial agreements and pricing arrangements that balance investor returns with affordability for domestic consumers.
He also identified potential investments of between $40 billion and $60 billion over the coming years, including a floating liquefied natural gas project approaching a final investment decision.
Beyond gas, Nigeria is seeking to strengthen its regional energy position through additional refining capacity, including the Dangote refinery, modular refineries and efforts to restore state-owned facilities.
These developments could support domestic fuel supply and create opportunities to export refined petroleum products and petrochemicals to neighbouring countries.
Umar identified predictable regulation, transparent processes and reliable fund repatriation as important factors in attracting investment into the sector.
The success of Nigeria’s ambitions will depend on translating its infrastructure plans and investment commitments into reliable gas supply, expanded industrial activity and stronger regional energy trade.