The Nigerian government has announced a comprehensive strategy to address chronic challenges in its gas-to-power sector, while simultaneously expanding a national programme to promote clean cooking. The initiatives aim to stabilise electricity supply, accelerate industrialisation, and improve household energy access.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, stated that natural gas already generates over 70 per cent of Nigeria’s on-grid electricity. However, he acknowledged that persistent weaknesses in supply chains, infrastructure, and commercial arrangements continue to limit reliable power delivery. To resolve this, the government is prioritising long-term, bankable gas supply agreements for power plants to provide certainty for both producers and generators. This seeks tostimulate essential upstream and generation investments.
A key component of the plan is the full implementation of the National Economic Council-approved debt resolution framework, designed to clear legacy debts owed to gas suppliers and power generation companies. The minister emphasised that settling these debts is critical for sustaining operations. Concurrently, the administration is accelerating the expansion of critical midstream infrastructure, including pipelines and processing facilities, to prevent supply disruptions that frequently shut down power plants.
President Bola Tinubu has approved the establishment of a National Gas Infrastructure Command Centre. This facility will provide real-time coordination and monitoring of gas assets nationwide, aiming to enhance system reliability, transparency, and operational response times.
Beyond power, the government envisions gas as the cornerstone of industrial growth, supporting manufacturing, petrochemicals, and agriculture. Projects like the Brass Gas Hub are being advanced to create industrial clusters for value addition and exports. The strategy also promotes wider adoption of Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG) for households, transport, and small businesses to cut fuel imports and pollution.
A significant social initiative is the nationwide scaling up of the free LPG cylinder distribution programme to all six geopolitical zones. The minister explained this targets improved public health by reducing indoor air pollution, curbing deforestation from firewood use, and lowering household energy costs. The rollout includes first-time user kits and safety education.
The government reaffirmed that the Petroleum Industry Act (PIA) provides the regulatory foundation for these reforms, with regulators and NNPC Limited tasked with ensuring cost-reflective pricing and efficient licensing. These measures, officials assert, are intended to reposition Nigeria as a credible destination for long-term gas investment, leveraging its over 200 trillion cubic feet of proven reserves to support economic diversification and energy transition goals.
