Nigeria Unveils $3.5 Billion Gas Investments Under Tinubu
The Nigerian government has highlighted significant progress in the gas sector under President Bola Tinubu, including $3.5 billion in new investments that have reached the Final Investment Decision (FID) stage. Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, revealed four key projects: the Iseni Project ($122 million), Ubeta Project ($566 million), HI Project ($2 billion), and Ima Project ($800 million). Additionally, the Brass Methanol Project, valued at approximately $3.5 billion, is advancing towards execution following the resolution of its Gas Sales and Purchase Agreement (GSPA).
Ekpo emphasized that these developments signal a return of investor confidence in Nigeria’s gas sector. The government aims to boost production, enhance infrastructure, and ensure gas resources translate into economic benefits. Total gas reserves have increased from 208.83 trillion cubic feet (TCF) in 2023 to 215.19 TCF as of January 1, 2026. Average gas production has risen from 6.86 billion cubic feet per day (bcf/d) to 7.5 bcf/d, with domestic supply exceeding 2 bcf/d. The government targets 10 bcf/d by 2027 and 12 bcf/d by 2030 to meet growing demand from power generation, industries, and export markets.
The Nigeria LNG’s nameplate capacity utilization has improved from 59% to 87%, partly due to increased stability in the Niger Delta and greater participation by indigenous companies. The Train 7 project, under construction and targeted for completion in June 2027, will add 8 million tonnes per annum to the existing 22 million tonnes, increasing total capacity to about 30 million tonnes per annum. This expansion will strengthen Nigeria’s gas-processing capacity and export potential.
On gas infrastructure, the OB3 gas pipeline is now 100% complete, with pre-commissioning concluded for first gas after the River Niger crossing. The pipeline can transport about 2 bcf/d and is expected to unlock more than 500 million standard cubic feet per day (MMscf/d) of incremental domestic gas supply. The Ajaokuta-Kaduna-Kano (AKK) gas pipeline is approximately 95% complete and is expected to be finished in 2027. Through the Midstream and Downstream Gas Infrastructure Fund (MDGIF), N671 billion in public funds has attracted approximately N1.6 trillion in private investment, covering 31 projects and 205 infrastructure assets.
The government is also promoting Compressed Natural Gas (CNG) to reduce transportation costs, with the number of converted CNG-powered vehicles increasing from 11,000 in 2023 to over 120,000. The target is to reach 1 million CNG-powered vehicles and up to 1,000 refuelling stations nationwide. For LPG, the government aims to reach 5 million households by 2030, with a long-term program extended to 2060 to provide cleaner cooking solutions.