The Nigerian National Petroleum Company Limited (NNPC) is actively courting investors to accelerate key gas infrastructure projects, most notably the Ajaokuta–Gwagwalada segment of the Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline, which is slated for its first gas delivery by July 2026. This push underscores Nigeria’s strategic pivot from an oil-centric economy to a gas-first nation, aimed at bolstering energy security and industrial growth.
The 614-kilometre AKK pipeline is a cornerstone of Nigeria’s gas master plan. Once operational, the Gwagwalada segment is expected to transform energy supply in northern Nigeria by linking industrial hubs to reliable gas. This will support power generation, manufacturing, and the expansion of compressed natural gas (CNG) for transport. NNPC has committed to supplying piped gas to the proposed Gwagwalada Mini-LNG and L-CNG facility, a project highlighted as a strategic “mother station” for mobile refuelling units.
NNPC’s Executive Vice President for Gas, Power and New Energy, Olalekan Ogunleye, stated that the era of Nigeria being “an oil nation that happened to have some gas” is over. He reaffirmed national targets to increase gas production to 10 billion cubic feet per day by 2027 and 12 billion by 2030. Ogunleye noted that Nigeria’s proven gas reserves exceed 210 trillion cubic feet, with domestic supply already surpassing 2 billion cubic feet daily. The CNG sector has attracted over $200 million in private investment, with more than 300 conversion centres established and a goal of one million vehicle conversions by 2027.
The Gwagwalada project, championed by Portland Gas Limited, is positioned to bridge the gap between stranded gas and end-users, lowering energy costs and reducing diesel dependence. Stakeholders at a recent Abuja workshop stressed that mini-LNG and L-CNG infrastructure are critical for scaling gas access beyond pipeline constraints, serving transport fleets and industrial clusters.
Support from the Presidential CNG Initiative reinforced the government’s commitment to building a competitive gas economy through infrastructure, regulatory coordination, and de-risking investments. Officials linked the initiative to recent economic policies, such as the removal of petrol subsidies, which heighten the urgency for affordable, domestic alternatives.
The July 2026 deadline for first gas from the AKK pipeline’s Gwagwalada node marks a tangible milestone. Successful completion is anticipated to unlock significant productivity and industrial renewal in the north, while broader gas infrastructure development is framed as essential for Nigeria’s energy transition and macroeconomic stability. Investors are being urged to participate in this “next decade of clean energy growth.”
