The Federal Government has unveiled fresh measures to strengthen Nigeria’s gas-to-power value chain, describing natural gas as the backbone of electricity supply and a critical enabler of the country’s industrialisation drive.
The government disclosed that gas currently fuels more than 70 per cent of Nigeria’s on-grid electricity generation, but admitted that structural weaknesses across supply, infrastructure and commercial arrangements have continued to constrain power delivery to homes and industries.
Speaking on the government’s strategy during a ministerial address at the National Gas Day session of the 9th Nigeria International Energy Summit (NIES 2026) held on Thursday in Abuja, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the administration of President Bola Tinubu was deliberately reinforcing the entire gas-to-power ecosystem to support economic growth, industrial productivity and energy security.
Expo also announced the expansion of its free Liquefied Petroleum Gas cylinder distribution programme to cover all six geopolitical zones, as part of efforts to deepen clean cooking adoption, reduce deforestation and cut household reliance on firewood and charcoal.
“Today, gas fuels over 70 per cent of Nigeria’s on-grid electricity generation. But to power our industrialisation ambitions, we are strengthening the entire gas-to-power chain,” the minister said.
“Our focus is not just about producing gas; it is about ensuring that gas moves seamlessly from the wellhead to power plants in a commercially viable, predictable and sustainable manner.”
He explained that the Federal Government’s strategy prioritises long-term, bankable gas supply agreements for power plants, noting that inconsistent gas supply and payment risks have historically discouraged investment in both upstream gas development and power generation.
“We are working to put in place long-term, commercially viable gas supply agreements that give confidence to producers and guarantee reliable fuel to power plants. Without certainty of supply and payment, you cannot unlock the scale of investment required to stabilise electricity generation,” he said.
The minister added that the government was sustaining the implementation of the National Economic Council-approved power sector debt resolution framework, which is aimed at addressing legacy debts owed to gas suppliers and generation companies.
“The debt overhang in the power sector has been a major bottleneck. We are implementing the NEC-approved framework to resolve these liabilities because gas suppliers must be paid if power plants are to continue operating,” he said.
He also disclosed that the administration was accelerating the expansion of critical gas infrastructure, including pipelines, processing facilities and metering systems, to eliminate supply disruptions that have repeatedly forced power plants offline.
The minister said, “We are expanding pipelines, processing plants and metering infrastructure, because molecules in the ground do not generate electricity unless the infrastructure exists to move them. At the same time, we are deepening collaboration with the power sector to remove operational and commercial bottlenecks across the value chain.”
As part of the reforms, President Tinubu has approved the establishment of a National Gas Infrastructure Command Centre, which will coordinate and monitor gas infrastructure nationwide in real time.
“The National Gas Infrastructure Command Centre will allow us to monitor, coordinate and optimise gas assets across the country. It is a critical tool for improving reliability, transparency and response time,” the minister stated.
Beyond electricity generation, the Federal Government described gas as the “lifeblood” of Nigeria’s broader industrial economy, supporting agriculture, manufacturing, petrochemicals and transportation.
According to the minister, the administration is pushing the development of gas-based industrial hubs, including the Brass Gas Hub, to catalyse large-scale manufacturing and export-oriented industries.
“Gas is not only about power. It is the engine of industrialisation. From fertiliser and petrochemicals to manufacturing and transport, gas underpins modern economic growth. Through projects like the Brass Gas Hub, we are creating platforms for value addition, jobs and regional development,” he said.
He added that the government was promoting wider adoption of Liquefied Petroleum Gas and Compressed Natural Gas for households, transport operators and small businesses to reduce dependence on petrol and diesel.
“We are expanding LPG and CNG usage across households, transport and SMEs, not only to cut energy costs but also to deliver cleaner and more sustainable energy solutions,” he said.
The minister further highlighted plans to encourage small-scale and modular gas commercialisation, particularly in gas-producing communities.
“Small-scale gas solutions will empower entrepreneurs, deepen local participation and ensure host communities benefit directly from gas resources,” he noted.
This is how we move Nigeria from exporting molecules to exporting value.”
On regulation, the government reaffirmed that the Petroleum Industry Act remains the foundation for attracting investment into Nigeria’s gas sector.
The minister said the government was working closely with the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NNPC Limited and private investors to strengthen the policy environment.
“The PIA provides a transparent, commercially grounded framework. Our job is to make it work effectively,” he said.
“We are ensuring cost-reflective pricing, simplifying licensing processes, growing local content and shortening project delivery timelines.”
He stressed that Nigeria’s gas reforms were positioning the country as a credible destination for long-term investment.
“Nigeria is not just a market of promise. It is a platform of reform, resilience and sustainable returns,” the minister said.
Nigeria holds the largest proven gas reserves in Africa, estimated at over 200 trillion cubic feet, yet gas supply constraints, infrastructure gaps and power sector debts have limited its full utilisation. The Tinubu administration has placed gas at the centre of its energy transition and economic growth agenda, targeting improved electricity supply, reduced fuel imports and accelerated industrial development.
Speaking on the expansion of gas cylinder distribution, the Minister said the decision to scale the initiative nationwide reflects the administration’s commitment to energy access, public health and climate action.
“We are taking the free LPG cylinder programme to all six geopolitical zones to ensure that no part of the country is left behind in the transition to clean cooking,” the minister said.
“This initiative is about improving lives, reducing indoor air pollution, protecting our forests and lowering household energy costs, especially for women and children.
He explained that the programme involves the distribution of LPG cylinders and accessories to first-time users, alongside safety education and awareness campaigns to promote responsible usage.
“Access is only one part of the solution. We are also prioritising safety and awareness, so beneficiaries understand how to use LPG properly and confidently,” he added.
According to the minister, the nationwide rollout aligns with the Federal Government’s broader gas expansion agenda under the Decade of Gas initiative, which seeks to grow domestic gas utilisation across cooking, transportation, power and industry.
“LPG remains one of the fastest and most practical pathways to clean energy adoption for households. By expanding this programme nationwide, we are translating policy into real impact at the grassroots,” he said.
