Nigeria earned around ₦8.6 trillion from natural gas production in 2024, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Gas Production Details
The country produced 2.5 trillion cubic feet (TCF) of gas last year, made up of:
- 1.44 TCF of associated gas: Found alongside crude oil in petroleum deposits.
- 1.06 TCF of non-associated gas: Found in gas fields without oil.
Out of the total gas produced, 2.31 TCF was utilised, while 192.89 billion standard cubic feet (BCF) were flared.
Earnings Breakdown
The government set the domestic gas price at $2.42 per Million Metric British Thermal Units (MMBTU) in 2024. Using this rate, the 2.31 TCF of utilised gas amounts to about $5.74 billion. At an exchange rate of ₦1,500 per dollar, this equals approximately ₦8.6 trillion.
Usage of Produced Gas
- 733.94 BCF was used in fields.
- 673.64 BCF was sold within Nigeria.
- 905.34 BCF was exported.
About 92.2% of the total gas produced was used, while 7.69% was flared.
Plans to Boost Gas Economy
The Federal Government plans to increase daily gas production from 7.5 billion cubic feet (BCF) to 12 BCF by 2030, aligning with its Decade of Gas initiative. The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, stated that deepwater gas deposits and international oil companies’ investments would drive this growth.
Nigeria’s Gas Reserves
Nigeria’s reserves stand at 209.26 TCF, including associated and non-associated gas. The government aims to shift from petrol and diesel to natural gas as a cleaner fuel option.
Challenges in Gas Adoption
Efforts to popularise compressed natural gas (CNG) face hurdles, including limited refuelling stations and high vehicle conversion costs. However, the Presidential Compressed Natural Gas Initiative aims to make CNG more accessible.