Nigeria's Gas Investment Landscape – 2024 Overview & Prospects for 2025

Nigeria is Ready for Business

Nigeria’s gas sector continues to show strong growth, with significant investments and policy reforms driving the industry forward. In 2024, Nigeria generated approximately N8.6 trillion from natural gas production, with total gas output reaching 2.5 trillion cubic feet (TCF), according to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). This comprised 1.44 TCF of associated gas and 1.06 TCF of non-associated gas.

Of the total production, 2.31 TCF was utilized, while 192.89 billion standard cubic feet of gas was flared. The Federal Government remains committed to reducing gas flaring while increasing gas utilization, ensuring the sector remains a cornerstone of Nigeria’s energy transition.

Expanding Gas Production & Infrastructure Development

In line with the Decade of Gas initiative, the government aims to grow daily gas production from 7.5 billion cubic feet (BCF) to 12 BCF by 2030. The Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, emphasized the administration’s commitment to positioning Nigeria as a global gas hub, leveraging the country’s 209.26 TCF of proven gas reserves.

Notably, Total and NNPC committed $500 million to the Ubeta field gas project, discovered in 1965. Similarly, Shell, Total, ENI, and Exxon announced a landmark $5 billion investment in the Bonga North project, expected to boost Nigeria’s production by 110,000 barrels per day.

Gas-Powered Economic Diversification & Energy Transition

Following the removal of fuel subsidies, the Presidential Compressed Natural Gas Initiative (Pi-CNG) was launched to drive Nigeria’s transition from petrol and diesel to CNG, LPG, and mini-LNG. While adoption has been slow due to infrastructure limitations, government incentives introduced in October 2024 aim to increase the penetration of alternative fuels.

Investment in the CNG, LPG, and electric mobility value chain has reached $700 million, with further private sector investments expected in 2025. Nigeria’s shift towards gas is poised to accelerate industrialization, promote cleaner cooking solutions, and enhance on-grid electrification through improved liquidity and policy frameworks.

Regulatory Reforms Attracting Investment

Policy initiatives such as Directive 40 have established competitive fiscal terms for non-associated gas and deepwater gas development. Additionally, incentives for midstream and downstream infrastructure have improved the ease of doing business, fostering greater investor confidence.

A backlog of pending regulatory approvals for divestments by International Oil Companies (IOCs) has also been cleared, allowing a new generation of local oil and gas firms to take over onshore and shallow water assets. This has been misinterpreted as an IOC exit from Nigeria; however, it is, in fact, a strategic shift toward deepwater projects where larger gas reserves exist.

Key Gas Projects Completed in 2024

Two major gas projects, SEPLAT’s Assa North and Shell’s Ohaji South, were completed in 2024, adding 600 million standard cubic feet per day (MMscfd) to Nigeria’s gas capacity. Additionally, the 300 MMscfd Kwale Gas Gathering (KGG) Hub and Injection Facility, a partnership between Xenergy Limited and NCDMB, was commissioned. These projects represent a significant milestone in Nigeria’s gas development roadmap.

Nigeria’s Commitment to a Gas-Based Economy

The Federal Government’s gas-focused policies and incentives demonstrate its resolve to build a sustainable gas economy. The Nigerian Content Development and Monitoring Board (NCDMB) has played a critical role in aligning local content policy initiatives with this agenda, supporting investments in CNG projects, LPG depots, gas processing plants, and gas gathering facilities.

The Gas Investment Forum Commends Nigeria’s Business-Friendly Environment

The Gas Investment Forum acknowledges the bold steps taken by the Nigerian government in fostering an enabling environment for gas investments. The improved regulatory framework, competitive fiscal terms, and strategic divestments have positioned Nigeria as a leading investment destination in the global gas sector.

The Future of Gas Investment in Nigeria

As 2025 begins, Nigeria is well-positioned to attract greater domestic and foreign investment in gas infrastructure, exploration, and commercialization. The Gas Investment Forum remains committed to serving as West Africa’s leading platform for convening local and international investors, facilitating high-level discussions, and driving strategic partnerships that will shape Nigeria’s gas industry for years to come.

Together, we will unlock Nigeria’s full gas potential and accelerate its journey toward becoming a global gas powerhouse.