Nigeria’s announcement that its proven natural gas reserves have risen to 215.19 trillion cubic feet, with daily production increasing from 5 billion to 7.5 billion cubic feet, is more than good news. It is a challenge. For too long, Nigeria has been a paradox: a gas-rich nation that is energy-poor, a country that flares what it should earn from. Reserves that remain underground do not power homes, run factories, create jobs or improve livelihoods. They are merely numbers. That narrative, however, appears to be changing.
The emergence of Kano State as a strategic hub for Compressed Natural Gas development, with seven operational refuelling stations and 17 more under construction, shows how gas can directly lower transport costs and offer cleaner alternatives in Northern Nigeria. This is the kind of domestic utilisation the country needs. The progress is not accidental. As industry expert Mr. Taofeek Balogun noted, it is linked to reforms under President Bola Tinubu and the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo. Securing $3.5 billion in committed investments across four major gas projects, completing the Obiafu-ObrikomOben (OB3) pipeline and pushing the Ajaokuta-KadunaKano (AKK) pipeline to 95 per cent completion are significant milestones.
So too is the federal government’s N671 billion commitment to public gas infrastructure, which has attracted N1.6 trillion in private capital. But infrastructure alone is not enough, as Minister Ekpo rightly observed. Access to gas must go beyond licences and acreage. Today, investors still struggle with inadequate evacuation capacity, financing constraints, regulatory uncertainty and limited market access. Unless these bottlenecks are removed, reserves will remain stranded. The Federal Government’s Decade of Gas Initiative provides the right vision – to move Nigeria from being rich in gas resources to being rich in gas-based economic opportunities.
To achieve this, three things must happen. First, the Petroleum Industry Act 2021 must be implemented with consistency to create a predictable, investor-friendly environment. Second, government must continue to de-risk the sector to crowd in private capital, technology and commercial discipline, because it cannot develop the sector alone. Third, collaboration among regulators, financial institutions and industry must be strengthened to move projects from concept to Final Investment Decision.
Crucially, the gas economy must be democratized. Opportunities should not be limited to a few large players. Empowering indigenous companies, independent producers and technology providers will deepen competition, build local capacity and ensure more value remains in Nigeria. We have the gas. Now we must have the prosperity.
