Obiageri Amaliri & Oghenekevwe Ovbije
Houston, TX — Despite boasting over 206 trillion cubic feet (TCF) of proven natural gas reserves, Nigeria continues to struggle with the practical delivery of gas to its citizens and industries. While government plans such as the Decade of Gas and the National Gas Expansion Programme (NGEP) have provided a policy-level roadmap, their execution reveals critical gaps. This article evaluates whether Nigeria’s current trajectory can deliver on its promise to make gas the nation’s primary transition fuel.
Policy Ambitions vs. Ground Reality
The Decade of Gas initiative and NGEP aim to deepen domestic gas penetration and reduce dependence on diesel, firewood, and petrol. However, Nigeria’s gas infrastructure remains predominantly export focused. The Nigeria LNG (NLNG) model, a joint venture dominated by international oil companies and the federal government, accounts for nearly all LNG exports, yet less than 10% of total gas production is used domestically. Without a dedicated domestic supply obligation and clear implementation strategy, these programs risk remaining aspirational. Nigeria’s fragmented gas transport infrastructure, safety regulation void, and low market liberalization are major obstacles.
Infrastructure and Access: A Stubborn Divide
Domestic gas use remains limited by a lack of physical access. There are no nationwide pipeline backbones connecting gas-producing regions to high-demand centres like Kano, Lagos, or Onitsha. City Gas Distribution (CGD) remains embryonic. Piped gas to homes is virtually non-existent beyond a few commercial zones in Lagos and Port Harcourt. Meanwhile, diesel generators dominate urban power supply, and kerosene or firewood remains the cooking fuel for over 60% of Nigerian households. Without large-scale investments in distribution pipelines, LPG bulk storage, and CNG refuelling stations, the vision of a gas-powered economy remains out of reach.
Monopoly and Market Structure
The current structure is heavily monopolized, with NLNG dominating exports and very few active players in downstream gas distribution. While a centralized model may simplify export logistics, it stifles innovation, competition, and pricing transparency. Private sector interest in domestic LNG, mini-LNG, and CNG infrastructure has been slow due to regulatory uncertainty, non-transparent pricing models, and the absence of enforceable domestic gas obligations for upstream producers.
A Call for Realignment
Nigeria’s gas sector must transition from vision to verifiable action. Infrastructure rollout must prioritize domestic value creation. A national gas grid, domestic supply mandates, liberalized markets, and safety enforcement are non-negotiable pillars of success. Without recalibration, Nigeria risks turning its gas wealth into yet another missed opportunity. The urgency is not just economic; it is social and environmental. Real reform begins by asking the hard question: are we on the right track? And if not, when will we correct course?
