FG Moves to Reinforce Gas-to-Power Chain for Industrial Growth

The Federal Government has unveiled new plans to strengthen Nigeria’s gas-to-power value chain, describing natural gas as the backbone of electricity supply and a key driver of industrialisation.

At the National Gas Day session of the 9th Nigeria International Energy Summit in Abuja, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the Tinubu administration is focused on stabilising power generation by tackling weaknesses in gas supply, infrastructure, and commercial arrangements.

Ekpo noted that gas currently fuels more than 70 percent of Nigeria’s grid electricity but warned that inconsistent supply and payment risks have discouraged investment. He explained that the government is prioritising long-term, bankable gas supply agreements to give producers confidence and ensure reliable fuel for power plants.

The minister highlighted ongoing efforts to resolve legacy debts in the power sector, stressing that gas suppliers must be paid to sustain operations. He also announced the creation of a National Gas Infrastructure Command Centre to monitor pipelines and facilities nationwide in real time, improving transparency and reliability.

Beyond electricity, Ekpo described gas as the “lifeblood” of Nigeria’s wider economy, supporting agriculture, manufacturing, petrochemicals, and transport. He revealed plans for gas-based industrial hubs such as the Brass Gas Hub, designed to spur manufacturing, exports, and job creation.

The government is also expanding its free LPG cylinder distribution programme to all six geopolitical zones to promote clean cooking, reduce deforestation, and cut household reliance on firewood and charcoal. Wider adoption of LPG and compressed natural gas (CNG) is being encouraged across households, transport, and small businesses to lower energy costs and deliver cleaner alternatives to petrol and diesel.

Ekpo added that small-scale gas projects will be promoted in producing communities to empower entrepreneurs and deepen local participation. He reaffirmed that the Petroleum Industry Act (PIA) remains the foundation for attracting investment, with reforms focused on cost-reflective pricing, simplified licensing, and stronger local content.

Nigeria holds over 200 trillion cubic feet of proven gas reserves, the largest in Africa, but supply constraints and infrastructure gaps have limited full utilisation. The Tinubu administration has placed gas at the centre of its energy transition agenda, targeting improved electricity supply, reduced fuel imports, and accelerated industrial growth.