Nigeria’s Domestic Gas Supply Surpasses 2 Billion Cubic Feet Per Day

Nigeria's domestic gas supply has crossed 2 billion cubic feet per day as the government works to increase gas availability for power plants, industries and other sectors. Total gas production has risen to 7.5 bcf/d, while proven reserves have increased to 215.19 trillion cubic feet. The government is targeting 10 bcf/d by 2027 and 12 bcf/d by 2030, supported by projects including the completed OB3 pipeline and the nearly completed AKK pipeline. Nigeria is also targeting about $30 billion in gas-sector investment by 2030.

Nigeria’s domestic gas supply has risen above 2 billion cubic feet per day (bcf/d) as the Federal Government intensifies efforts to increase gas availability for power generation, industries and other productive sectors of the economy.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed the development on Friday, saying the increase was part of wider efforts to reduce gas supply constraints that have continued to affect electricity generation and industrial activity.
According to the minister, Nigeria’s overall gas production has increased to 7.5 bcf/d, up from about 6.8 bcf/d in 2023.
The country’s proven natural gas reserves have also increased from 208.83 trillion cubic feet (tcf) to 215.19 tcf, strengthening Nigeria’s position as one of the countries with significant gas resources.
The government is now targeting production of 10 bcf/d by 2027 and 12 bcf/d by 2030 as it seeks to meet growing demand from electricity generation, manufacturing, fertiliser production, petrochemicals, liquefied natural gas, transportation and export markets.

GOVERNMENT SEEKS TO MAKE GAS MORE AVAILABLE

The increase in domestic gas supply is part of the government's wider effort to make better use of Nigeria's large gas reserves.
For years, insufficient gas supply has been one of the challenges affecting Nigeria's power sector. Many gas-fired power plants depend on a steady supply of natural gas to generate electricity, meaning disruptions in gas availability can directly affect power generation.
Industries also rely on gas for manufacturing and other operations. A more reliable supply could therefore help businesses reduce dependence on more expensive fuels and improve production.
The government is consequently focusing on increasing production while also developing pipelines and other infrastructure capable of transporting gas to where it is needed.

OB3 PIPELINE COMPLETED AND READY FOR FIRST GAS

One of the major projects expected to improve domestic gas distribution is the Obiafu-Obrikom-Oben (OB3) pipeline.
Ekpo said the pipeline has now reached full completion and is being prepared for the introduction of first gas.
The OB3 pipeline has the capacity to transport about 2 bcf/d of gas and is expected to unlock more than 500 million standard cubic feet per day (MMscf/d) of additional gas for Nigeria’s domestic market.
The project is considered important because increasing gas production alone is not enough if the country lacks sufficient infrastructure to move the fuel from producing areas to power plants, industries and other consumers.
The pipeline is therefore expected to strengthen the connection between gas-producing regions and major areas of demand.

AKK PIPELINE NEARS COMPLETION

Another major gas infrastructure project, the Ajaokuta-Kaduna-Kano (AKK) pipeline, is also approaching completion.
According to Ekpo, construction of the pipeline is about 95 per cent complete.
The AKK pipeline is designed to transport gas from the country's southern gas-producing areas towards northern Nigeria, potentially increasing access to natural gas in regions that have historically had more limited supply.
Improved gas availability in the north could support electricity generation, industrial development and the expansion of gas-based businesses.
It could also help connect more parts of the country to Nigeria's growing gas infrastructure network.

GOVERNMENT TARGETS 12 BCF/D BY 2030

Nigeria's gas production target is ambitious.
The government wants production to rise to 10 bcf/d by 2027 and eventually reach 12 bcf/d by 2030.
The additional gas is expected to serve several sectors, including power generation, manufacturing, fertiliser production, petrochemicals, LNG, transportation and export markets.
The government is also seeking to increase domestic consumption of gas while maintaining Nigeria's position as an important exporter of LNG and other gas-related products.
This creates the need for greater investment in production facilities, processing plants, pipelines, storage infrastructure and distribution networks.

BILLIONS OF NAIRA ATTRACT PRIVATE INVESTMENT

The government says public funding for gas infrastructure has also helped attract substantial private-sector investment.
Ekpo disclosed that ₦671 billion deployed through the Midstream and Downstream Gas Infrastructure Fund had attracted about ₦1.6 trillion in private investment.
The funding has supported 31 projects and 205 infrastructure assets.
When fully operational, the projects are expected to deliver approximately 475 MMscf/d of additional gas to the domestic market.
The figures highlight the government's strategy of using public funding to support infrastructure while encouraging private investors to provide additional capital for the expansion of the gas sector.

GAS EXPECTED TO SUPPORT POWER AND INDUSTRY

The government sees natural gas as a key part of Nigeria's economic development strategy.
For the power sector, increased gas availability could help gas-fired electricity plants operate more consistently.
For industries, reliable gas supplies could support production and reduce some of the challenges associated with energy costs and fuel shortages.
Gas is also important to Nigeria's fertiliser and petrochemical industries. Increased availability could support the production of fertilisers and industrial chemicals while creating opportunities for businesses involved in gas processing and manufacturing.
The government is also looking at greater use of gas in transportation as part of efforts to provide alternatives to traditional liquid fuels.

NIGERIA TARGETS $30 BILLION IN GAS INVESTMENT

Nigeria is targeting approximately $30 billion in investment in the gas sector by 2030.
Achieving that target will require continued investment in exploration, production, processing, pipelines, storage and distribution.
The government will also need to maintain investor confidence and address challenges that have historically affected investment in Nigeria's energy sector.
These include infrastructure gaps, project delays, security concerns, financing difficulties and the need for a stable regulatory environment.
The expansion of domestic gas infrastructure is therefore expected to play a central role in determining whether Nigeria can translate its large reserves into sustained economic benefits.

GAS RESERVES PROVIDE OPPORTUNITY FOR ECONOMIC GROWTH

Nigeria has long had substantial natural gas reserves, but developing the infrastructure needed to fully exploit those resources has remained a major challenge.
The latest increase in proven reserves to 215.19 tcf, combined with higher production and new pipeline capacity, provides an opportunity to expand the role of gas in the Nigerian economy.
The immediate focus is on ensuring that more of the gas produced reaches domestic consumers, particularly power plants and industries.
If the government's production and infrastructure targets are achieved, increased gas availability could support electricity generation, industrial activity, job creation and investment while strengthening Nigeria's position in regional and international energy markets.
The success of the strategy will ultimately depend not only on how much gas Nigeria produces, but also on whether the country can build and maintain the infrastructure needed to process, transport and deliver it reliably to consumers.