Nigeria’s Ambitious Gas Strategy Gains Momentum
Nigeria is making significant strides in repositioning natural gas as a cornerstone of its energy transition. According to recent data, gas production has increased from 6.8 billion cubic feet per day in 2023 to 7.5 billion cubic feet per day in 2025. This progress is being driven by improved collaboration across the energy value chain, with officials and stakeholders working together to unlock the country’s vast potential.
The Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, highlighted these developments during the Decade of Gas and World Bank Ministerial Roundtable and workshop held in Abuja. The event brought together government officials, regulators, investors, and development partners to discuss strategies for scaling up gas development across Nigeria and the broader African continent.
Ubong emphasized that sustained efforts in reforms and investments could see gas output reach 12 billion cubic feet per day by 2030. “This goal will depend heavily on partnerships across borders and institutions,” he said. He stressed that Africa’s energy future hinges on collaborative efforts to achieve shared prosperity through the gas sector.
The Decade of Gas initiative, which spans from 2021 to 2030, aims to unlock Nigeria’s substantial gas reserves and position the sector as a driver of economic growth. A dedicated secretariat was established in 2023 to coordinate implementation, focusing on stimulating demand, expanding infrastructure, ensuring competitive pricing, and building human capacity.
“We are deliberately asking a critical question across the ecosystem: what support is required to move projects forward and unlock value for Nigeria?” Ubong stated. He revealed that more than 215 gas demand projects are currently being tracked through a centralized database to improve planning and execution, with strengthened accountability mechanisms in place.
On key priorities, Ubong identified gas-to-power and the expansion of liquefied petroleum gas (LPG) usage as central to Nigeria’s domestic energy strategy. “Gas-to-power remains critical for improving electricity supply, while increasing LPG adoption will help replace firewood and charcoal, improving public health and environmental sustainability,” he said.
Nigeria plans to increase LPG consumption from 1.8 million tonnes per annum to 3 million tonnes by 2030, supported by the distribution of over five million gas cylinders nationwide. Several upstream operators have also taken Final Investment Decisions on major gas projects, signaling growing investor confidence.
Infrastructure development is another critical focus area. Nigeria has identified 16 priority pipeline projects requiring about $22bn in funding. “To deliver these projects, we need robust public-private partnerships and strong support from development partners, particularly the World Bank,” Ubong said.
Nigeria is positioning itself as a hub for a regional gas market, emphasizing the importance of alignment on supply, demand, and infrastructure across African countries. “We must develop pipeline systems that allow bidirectional flow to enhance flexibility and reliability across the region,” Ubong noted, citing projects such as the African Atlantic Gas Pipeline as key to connecting markets.
Farouk Ahmed, the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, echoed the need for deeper regional collaboration. “The first half of the Decade of Gas Initiative focused on identifying key enablers such as supply, demand, infrastructure, and pricing frameworks,” he said. He added that the next phase would focus on execution and measurable outcomes.
Ahmed outlined three major corridors for gas supply to regional and international markets: the African Atlantic Gas Pipeline, the Trans-Sahara Gas Pipeline, and coastal LNG infrastructure along the Gulf of Guinea. He stressed that unlocking these opportunities would require harmonized regulatory frameworks, credible demand data, and sustainable financing models.
“We must establish structured mechanisms for cross-border gas exports, backed by firm supply agreements and expanded gas-to-power infrastructure,” he added. Ahmed also called on the World Bank and other partners to support efforts to bridge Nigeria’s infrastructure gap.
Nigeria holds one of the largest gas reserves in Africa, estimated at over 200 trillion cubic feet. However, the resource remains underutilized due to infrastructure deficits, pricing challenges, and historically low domestic demand. The Decade of Gas initiative was introduced by the Federal Government to reverse this trend by positioning gas as a transition fuel capable of driving industrialization, improving electricity supply, and supporting cleaner energy use.
Despite recent gains, the country continues to grapple with power shortages, making gas-to-power projects a critical component of its energy strategy. Sustained investment, policy consistency, and regional cooperation will be key to translating Nigeria’s gas ambitions into tangible economic benefits.
