Nigeria can unlock its vast natural gas reserves to drive industrialisation by implementing stable regulations, establishing fair pricing mechanisms, and adopting clear infrastructure ownership models, according to Ralph Gbobo, Managing Director of Shell Nigeria Gas (SNG).
Speaking at the Lagos Section of the Society of Petroleum Engineers (SPE) Energy Week, Gbobo outlined key conditions for attracting investment. He stressed the need for “a stable, fast and transparent implementation” of gas sector rules. On pricing, he advocated for incentives to grow pipeline gas usage, which would make the sector more commercially viable. Regarding infrastructure, he called for the completion of ongoing projects and the reliable operation of the Escravos-Lagos Pipeline System through defined service standards.
Gbobo further recommended aggregating demand through strategic planning, such as developing industrial parks or designated zones. This clustering of consumers, he explained, creates a friendlier business environment for distributors to secure licenses and build shared infrastructure that serves multiple industries. He highlighted public-private partnerships (PPPs) as essential for such planning and delivery, enabling government support for demand aggregation initiatives.
The comments come amid a sharp surge in global liquefied petroleum gas (LPG) or cooking gas prices. Prices spiked following military escalation in the Middle East, which disrupted shipping and production from Qatar to Iraq. European gas prices rose nearly 40% in a single session, highlighting global market volatility.
This volatility underscores Nigeria’s domestic challenge. Despite holding some of Africa’s largest gas reserves, Nigeria remains a significant net importer of cooking gas. Recent reports indicate that between 20% and 47% of consumed LPG was imported as of late 2024. Historically, the country relied on imports for half or more of its supply, primarily from the United States and Equatorial Guinea. While early 2025 data showed a temporary rise in domestic production to as high as 80%, the nation still depends on imports to meet total demand.
Gbobo’s framework suggests that addressing regulatory uncertainty, establishing cost-reflective domestic gas prices, and ensuring pipeline reliability could stimulate local production and distribution. By attracting investment into gas gathering, processing, and pipeline networks through PPPs and clustered demand, Nigeria could reduce its import dependency and insulate its economy from external shocks. The potential payoff is a more resilient energy base for industry and households, leveraging a resource that has long remained underutilised for domestic development.
