Nigeria's $Billions Pipeline: A Risky Gamble on Gas Exports?

Nigeria is considering building an enormous pipeline to transport its gas across the Atlantic coastline. But experts warn that this project may be a costly mistake.

The African Atlantic Gas Pipeline, as it's called, would stretch for nearly 7,000 kilometers and pass through multiple countries. It's exposed to numerous risks, including political instability, technical issues, and commercial disputes.

Nigeria has already spent decades exporting crude oil while importing refined petroleum products. Now, the country is looking to export gas as a raw material, which could lead to more economic value being created elsewhere rather than at home.

Industrialization before gas exports could be a more profitable option for Nigeria. The country's gas can create far more economic value when converted into electricity and industrial products.

The government should publish an independent national gas plan showing how Nigeria will supply its power stations, industries, LNG projects, and other national obligations over the coming decades. Only surplus, commercially available gas should be considered for new long-term exports.