Nigeria’s ambition to transition into a gas-powered economy is facing a major infrastructure test. The Nigerian National Petroleum Company Limited (NNPCL) has disclosed that the country requires about $22 billion in new investment to expand and modernise its gas pipeline network, a move it says is critical to unlocking Nigeria’s vast gas potential.
The revelation is contained in the newly released NNPCL Gas Master Plan (GMP) 2026, which outlines a long-term strategy to bridge the widening gap between Nigeria’s abundant gas reserves and its domestic energy needs. Despite holding Africa’s largest proven gas reserves of about 210 trillion cubic feet, Nigeria still ranks only 16th globally in gas production, highlighting what NNPCL described as a structural disconnect driven largely by weak midstream infrastructure.
Gas infrastructure gaps threaten supply targets
According to the GMP 2026, Nigeria’s existing gas transportation network spans just over 2,500 kilometres, a figure NNPCL considers inadequate to support growing demand from power plants, gas-based industries and commercial users.
To address this, the national oil company is prioritising the completion of critical pipelines, including the Ajaokuta–Kaduna–Kano (AKK) pipeline and the OB3 gas pipeline, both of which are expected to significantly improve north–south gas connectivity and regional distribution.
NNPCL noted that although performance under the Domestic Gas Delivery Obligation (DGDO) framework has improved rising from 50 per cent five years ago to about 70 per cent in 2024 demand is projected to outstrip supply in all scenarios by 2030. As a result, the company said urgent investment is needed to stimulate non-associated gas development and deepwater gas projects to secure long-term supply.
Monetisation drive targets flaring reduction
Beyond transportation, the Gas Master Plan places strong emphasis on gas monetisation. Currently, Nigeria commercialises only about 60 per cent of its gas production, equivalent to roughly 4.6 billion cubic feet per day out of a total output of 7.5 billion cubic feet per day. The remaining volumes are either reinjected or lost to routine flaring.
NNPCL aims to raise gas monetisation to 75 per cent by 2027 and 80 per cent by 2030, a shift it says will be supported by improved infrastructure readiness, pipeline rehabilitation, and stronger hub interconnections. The plan also reinforces Nigeria’s commitment to ending routine gas flaring by 2027, redirecting wasted gas into power generation, fertiliser production and petrochemical manufacturing.
Seven high-readiness gas hubs have been identified as near-term growth drivers, accounting for about 60 per cent of Nigeria’s proved and probable gas reserves. Leading the list is the Gbaran-Soku-Obagi-OBOB Hub, with an existing processing capacity of 5.2 billion cubic feet per day and a planned expansion of 1.1 billion cubic feet per day.
Gas Master Plan aligns with national energy goals
NNPCL said the GMP 2026 is fully aligned with President Bola Tinubu’s energy security agenda, which targets gas production of 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030.
Achieving these targets, the company stressed, will require a shift to a willing-buyer, willing-seller gas market, alongside improved pricing frameworks and stronger commercial discipline across the value chain. To support execution, NNPCL said it is deploying a unified data platform and enhanced governance systems to improve transparency, accountability and investment confidence.
Ultimately, the national oil company believes that sustained infrastructure investment, combined with market-driven reforms, will determine whether Nigeria can finally translate its vast gas endowment into economic growth, industrial expansion and long-term energy stability.