According to various sources Nigeria possesses substantial natural gas reserves, estimated at over 200 trillion cubic feet.
This volume makes the country a potentially significant player in the global gas market.
Unfortunately, despite this abundance, so much gap exists between the country’s gas potential and its actual production and utilisation due to underinvestment and inadequate infrastructure development.This underutilisation results in missed opportunities for economic growth, job creation, and revenue generation.
Nigeria has the ninth largest proven gas reserves globally and the largest in Africa, but a significant portion of Nigeria’s gas reserves remain untapped, representing a vast opportunity for development and investment.
Experts highlights that harnessing these reserves could stimulate substantial Gross Value Added (GVA) to the domestic economy and create numerous jobs.
Nigeria aims to transition towards a gas-driven economy, leveraging its reserves to address energy needs and diversify its revenue streams.
Despite the potential, Nigeria has struggled to attract sufficient investment in its gas sector compared to other resource-rich African nations.
A major obstacle is the lack of adequate infrastructure, including pipelines, processing plants, and transportation networks, to effectively utilise and distribute gas.
Former Power Minister, Prof. Bart Nnaji, succinctly captures this scenario recently in Lagos while speaking at an energy conference in Lagos.
Nnaji, who is the Chairman of Geometric Power, expressed deep concern over Nigeria’s inability to fully harness its vast natural gas reserves for electricity generation, despite having over 200 trillion cubic feet (Tcf) of proven reserves.
Nnaji said, “It’s quite perplexing. We are a gas-rich country, yet we struggle to supply enough gas to our power plants.
“ NLNG, with its Train-7, is not operating at full capacity due to feedgas constraints. It’s a contradiction that many find hard to understand.”
He further emphasised that while Nigeria previously exported coal and had a functioning mining industry, the country abruptly abandoned these alternatives without adequate transition planning.
Speaking on the future of Nigeria’s energy mix, Nnaji said that while hydro and solar power have a role to play, gas-fired power plants will remain the dominant source of electricity for the next one to two decades.
“Hydro power has its limits in Nigeria due to seasonal variability and geopolitical concerns, particularly as it depends on stable relationships with northern communities and neighbouring countries,” he said.
He further emphasised that Nigeria is not investing adequately in gas production and pipeline transportation infrastructure, calling for greater private sector involvement.
“Nigeria has all the capacity it needs. Government should remain an enabler, but the private sector must take the lead. If we don’t produce enough gas, even promising initiatives like CNG adoption will not take off,” he stated.
Nnaji noted that most gas-fired power plants in Nigeria suffer from erratic operations due to inconsistent gas pressure and supply, an unacceptable situation for a nation with abundant gas resources.
He argued that with sufficient gas supply, Nigeria could stabilise its economy and expand into industrial processing such as petrochemicals, creating a diversified energy ecosystem.
Production levels have remained below potential, hampered by factors such as crude oil theft, aging infrastructure, and limited investment in the upstream sector.
Nigeria needs to attract significant investments in the gas sector, particularly in infrastructure development.
Building robust gas infrastructure is crucial for transporting and processing gas to meet both domestic and international demand.
Streamlining regulatory processes, clarifying the roles of different agencies, and implementing the Petroleum Industry Act (PIA) 2021 are essential steps. Prioritising domestic gas consumption through targeted reforms and incentives can help reduce reliance on imports and foster a more robust gas market.
Addressing investor concerns about regulatory uncertainty, corruption, and security can make Nigeria a more attractive destination for foreign capital
Making reference to key policy issues and infrastructure development, Engr. Chichi Emenike, Acting Managing Director and Gas Asset Manager of Neconde Energy Limited, sounded alarm over the consequences of some policies of Government that has undermined the ongoing energy transition.
According to Engr. Emenike, some of these have led to huge financial burden stifling the initiative, stressing that unpaid gas supplies, dollarised operations, and policy inconsistencies are discouraging investment in the sector.
Emenike, also spoke during a panel session at the Oriental News Nigeria 2025 Conference in Lagos.
According to her, Neconde, for instance, has gas that has been produced and supplied to the electricity generation companies (GenCos) and that has not been paid for almost two years now.”
“This is a serious conundrum, whereas we have sourced funds from somewhere to produce these gas molecules from our facilities. How am I going to pay back?”
Emenike further explained that Nigeria’s upstream gas production is highly dollarised, making it costlier than crude oil development and difficult to sustain without a commercially viable framework.
“Don’t forget that the gas production industry is highly dollarised, including the requisite inputs. There is no part of the operation, including the technology, that is produced locally. The bulk of it has to be imported in US$.
“The O&M, well drilling, and accessories to drill a gas well are all dollarised. So, it costs more than what it costs to drill a crude oil well. The handling of a gas well is highly sophisticated, unlike that of crude oil.”
Speaking on systemic issues within the gas-to-power value chain, Engr. Emenike said, “Over 500 million standard cubic feet (scf) of gas are being transported with the NGIC pipeline.
“If you multiply this figure by one dollar, you will understand the cost. Whereas so much money went into drilling some of these wells, it costs $35,000 plus or minus, and that is outside other assumptions of fees.”
Commenting on the financing and investment environment, Emenike called for a pragmatic national energy plan that begins with achievable goals, rather than lofty ambitions.
“Let us start with what is doable; I mean the low-hanging fruit. Let us stop with big numbers. We should tidy up small fields that are struggling to juggle both CAPEX and OPEX.
“We need to sit down once as a nation to be selfish enough to determine what is needed to take care of Nigeria’s economy alone in the Gulf of Guinea.”
She called for urgent clarity on Nigeria’s position in the energy transition and a realistic approach to funding.
“Where do we sit as Nigerians today on this energy transition plan? Where is the money to run the transition?
“Presently in Nigeria, it is difficult for a gas investor to determine end-to-end where the funds would be coming from. We need a strategy; we need to be serious. Or else, gas investors would rather take what they should have invested in the Nigerian economy to Mozambique or elsewhere.”
Emenike further warned about the economic risks associated with policy instability.
“Gas economics is such that it must be end-to-end. Even before you draw down the first financing, you have tied that investment to a commercial arrangement.
“When you have a business, as much as you think you know, in the case of Nigeria, once you put your leg out in this economy, you will see so many things flood in unexpectedly. Your IRR (rate of return) goes down the drain due to policy flip-flops and multiplicities of levies and fees.”
She insisted that the sector needs regulatory reforms and an end to what she described as rent-seeking behaviour by government agencies.
“We have to deal with the rent-seeking attitude of our regulators to enable investors repatriate their investment financing.
“They should stop flogging investors with all forms of regulations and later charge them with potential incidents of non-conformity, which translates to fines, even for not operating, after they have created the crisis.”
Calling for collaborative efforts, she advocated infrastructure sharing and coordination within the value chain.
“We need to leverage infrastructure to unlock the stranded assets across the country. We need to look at how to put together our war chest to achieve a lot for the industry. We need to set the rules of the game.”
She emphasised the importance of investor confidence and a market-driven approach.
“Every investor wants to see a clear line of sight. Market forces should be allowed to play out. The government should not create a monopolistic environment that stifles investment. They should allow it to have that flexibility.”
“None of these government officials understand how investors raise capital to finance their projects and the terms of it. Government has no business in business. They should stop the rent-seeking attitude and stop looking for short-term benefits. Quick fixes will not work.”
She has therefore challenged the federal government to focus inwardly and begin with achievable solutions.
According to her, “There is much more to be gained if we have a very selfish Nigerian plan that focuses on Nigerian interests alone. This can service the entire Gulf of Guinea if we are serious. Let us start with the small gas fields.”
She further urged the FG to stop putting benchmarks on gas for power, adding that the market forces should be allowed to dictate the price.
Engr. Emenike charged the Nigerian government to allow flexibility in the market and encourage alliances within the value chain operators.
NEMA’s Advocacy Position On Gas Development
On its part the National Emergency Management Agency (NEMA) has called all stakeholders in the oil and gas industry to build a web of cooperation to support the country as it navigates the complex but essential path toward cleaner, more sustainable energy.
This pathway to a realisable energy transition would be facilitated by providing leadership to develop the country’s gas resources.
The Director General (DG) of the Agency Mrs. Zubaida Umar, speaking at the 4th National Conference of Oriental News Nigeria, themed’ , “Integrating Nigeria’s Gas Potentials into Strategic Energy Transition Initiatives,” said the topic is both timely and forward-looking, as such conversations are vital in shaping policies and forging partnerships that will ensure an inclusive and secure energy future for our nation.
Represented by Manzo Ezekiel, head of Press in NEMA, Umar, expressed the dedication of the Agency and staff of NEMA and all emergency responders, who continue to show courage and compassion in the face of adversity.
“I remain committed to upholding the highest standards of leadership, transparency, and service to our dear nation.” she said.
She expressed happiness of the management and staff of the National Emergency Management Agency (NEMA), to be honoured by the nomination of the Agency as the “Most Responsive Emergency Response Agency.” at the conference.
This recognition is a testament to the dedication and tireless efforts of our personnel across the country, who work daily, often under difficult conditions, to mitigate risks, respond to disasters, and support communities in need, the DG said.
Umar, recalled that since its establishment by Act 12, as amended by Act 50 of 1999, NEMA has remained steadfast in its mission to coordinate disaster management activities in Nigeria, adding, We have continued to expand our outreach through public enlightenment, capacity building, early warning systems, and strategic partnerships aimed at building national resilience. This honour further strengthens our resolve to do more, respond faster, and serve better.”
*In recent months, flood preparedness has taken centre stage in our operational priorities, in anticipation of the seasonal climate outlook and associated risks as predicted by the Nigerian Meteorological Agency (NiMet) and the Nigerian Hydrological Services Agency (NIHSA). We have intensified community sensitization campaigns and conducted simulation exercises (SIMEX) in some flood-prone areas. These efforts aim to enhance understanding of disaster risks and clarify roles and responsibilities for timely and effective response.*
*We are continuing with these efforts, and I wish to use this opportunity to urge the media to help amplify these messages, so that states, local governments, and communities can be more aware of the risks they face, and be proactive in taking preventive, mitigative, and responsive actions.*
*Through close collaboration with state emergency agencies and relevant Ministries, Departments, and Agencies (MDAs), NEMA has activated its flood early warning mechanisms, carried out technical assessments in vulnerable communities, and engaged stakeholders to develop timely and coordinated response plans. Our response efforts to recent flood and climate-induced incidents have been swift and impactful, with thousands of affected households receiving essential relief support. These proactive measures are part of our broader commitment to mitigating the humanitarian and economic consequences of climate-related disasters.*
She commended Oriental News Nigeria for this laudable initiative and for using the platform to highlight impactful contributions to national development.
“We are also encouraged by the calibre of speakers and participants, including the Managing Director of NLNG, Dr. Philip Mshelbila, whose keynote address will no doubt add immense value to the conference.” she said, while also assuring of NEMA’s continued commitment to safeguarding lives, property, and livelihoods across Nigeria, especially as we confront evolving disaster risks with foresight, innovation, and unity.
NLNG Building A Legacy Expansion Strategy
The Nigerian Liquified Natural Gas Limited (NLNG) however, pointed that its expansion plans aligns directly to the country’s energy needs which is also linked to its energy transition plans.
The NLNG said its operations is central to Nigeria’s gas future, revealing that the company plans to expand its capacity to 30 million tonnes per annum.
As part of its energy transition strategy, the company is integrating technologies and processes aimed at reducing emissions and generating carbon credits.
Temitope Ogedengbe, Manager, Energy Transition NLNG, therefore advised that Nigeria must avoid adopting a “copy-paste” approach to energy transition, insisting that the country must tailor its strategy to reflect local realities, including the urgent need for economic growth, energy security, and national development.
“Our transition must leverage our unique strengths and resources to grow our economy,” Ogedengbe said. “Energy transition should not be a copy-paste exercise.
“Nigeria must design its own, since we need economic development, energy security, and to address developmental issues.”
He made this known while giving a presentation as a keynote speaker at the Oriental News Nigeria 2025 Conference, held in Lagos, while speaking on the theme: “Integrating Nigeria’s Gas Potential into Strategic Energy Transition Initiatives.”
Ogedengbe, while highlighting challenges around gas utilisation, lamented that despite Nigeria’s abundant natural gas resources, a large portion is still being flared or reinjected due to the absence of viable commercial arrangements.
“We’re not taking nearly the amount we should be. We are still failing and reinjecting because there is no commercial arrangement to optimise this; for many reasons,” he stated.
He noted that while marginal fields hold potential, they are difficult to produce economically.
“The issues there are marginal fields, which are difficult to produce,” he said, adding that the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) Gas Flaring Commercialisation Programme is trying to address this.
According to him, a significant chunk of Nigeria’s gas is still either exported or flared, while domestic utilisation and value addition remain underdeveloped.
“We are not investing enough, and we are not examining the right approaches,” he added.
Speaking on the global LNG market, Ogedengbe noted that although there is still a market for LNG produced by Nigeria, demand patterns are shifting, particularly in Europe, where buyers now favour lower-carbon LNG options.
He said, “There is still a market for LNG produced in Nigeria, but what is happening is that Europe is asking for lower-carbon LNG.
“There’s a need to use operational levers to reduce carbon, attract premium markets, and unlock funding opportunities, including through reduced taxes and levies.”
He further stated the NLNG remains central to Nigeria’s gas future, revealing that the company plans to expand its capacity to 30 million tonnes per annum.
“ As part of its energy transition strategy, the company is integrating technologies and processes aimed at reducing emissions and generating carbon credits.
“We’re using offsets to reduce our emissions, both at the national and international levels, to take carbon out of the atmosphere and promote our operations,” he explained.
Ogedengbe emphasized the need for a multi-pronged, well-coordinated approach to decarbonising the country’s gas sector to ensure long-term viability and global competitiveness.
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