NIGERIA’S DOMESTIC GAS SUPPLY CROSSES 2 BILLION CUBIC FEET PER DAY AS GOVERNMENT TARGETS HIGHER PRODUCTION
By Iroyin Yoruba Television
Nigeria’s domestic natural gas supply has crossed 2 billion cubic feet per day, according to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, as the Federal Government intensifies efforts to expand gas production and improve supplies to power plants, industries and other domestic users.
Ekpo disclosed the latest figure on Friday, October 2, 2026, while providing an update on developments in Nigeria’s gas sector and the government’s plans to increase production and investment over the coming years.
The milestone comes as Nigeria seeks to use its substantial natural gas resources to address energy shortages, support industrial production, expand electricity generation and strengthen the country’s position in regional and international energy markets.
The minister said overall gas production had risen to about 7.5 billion cubic feet per day from approximately 6.8 billion cubic feet per day in 2023.
He also said Nigeria’s proven gas reserves had increased to 215.19 trillion cubic feet from 208.83 trillion cubic feet over the same period.
The figures point to a broader effort to increase the contribution of gas to the Nigerian economy.
Natural gas is used across several parts of the economy, including electricity generation, manufacturing, fertiliser production, petrochemicals, liquefied natural gas and other industrial activities.
Improving the availability of gas to these sectors could have implications for production costs, electricity supply and industrial capacity.
However, increased gas production alone does not guarantee that every consumer or business will immediately experience lower energy costs.
The gas must be gathered, processed, transported and delivered through functioning infrastructure before it can reach power plants and industrial users.
This makes pipeline development and investment in processing facilities central to the government's strategy.
One of the major infrastructure developments highlighted by the minister is the Obiafu-Obrikom-Oben, or OB3, gas pipeline.
Ekpo said the pipeline had reached full completion and was being prepared for the delivery of first gas.
The pipeline has a transportation capacity of about 2 billion cubic feet per day.
The government expects the infrastructure to unlock more than 500 million standard cubic feet per day of additional gas for the domestic market.
The expected increase would provide additional supply for sectors that depend on natural gas.
Power generation is one of the most important.
Many Nigerian electricity-generating plants rely on gas as their primary fuel.
When gas supplies are insufficient, power plants can operate below capacity or shut down temporarily.
Increasing gas availability can therefore support electricity generation, although other factors such as transmission capacity, distribution infrastructure, plant maintenance and payment arrangements also affect the reliability of electricity supply.
The government is also working on the Ajaokuta-Kaduna-Kano gas pipeline.
Ekpo said the AKK pipeline was approximately 95 per cent complete.
The project is intended to expand gas transportation infrastructure toward northern Nigeria.
Its completion could provide additional opportunities for power generation, industrial development and other gas-related activities in the northern part of the country.
The development of the pipeline network is particularly important because Nigeria's major gas reserves and production facilities are concentrated largely in the Niger Delta and other southern areas.
Infrastructure is therefore required to transport gas to markets across the country.
The government is targeting gas production of 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030.
Achieving those targets would require additional investment in upstream production, gathering systems, processing facilities and pipelines.
It would also require sufficient demand from domestic and export markets.
The government is positioning natural gas as a major component of Nigeria's economic development strategy.
The strategy is based on using gas not only as an export commodity but also as an input for domestic economic activity.
Gas can provide energy for manufacturers, support fertiliser production, supply petrochemical industries and provide feedstock for other industrial processes.
Expanding domestic gas use could therefore create links between the energy sector and other parts of the economy.
The minister said Nigeria was targeting approximately $30 billion in gas-sector investment by 2030.
That target illustrates the scale of investment required to expand the industry.
Investment will be needed across different parts of the value chain.
Upstream companies require capital to develop gas fields.
Midstream operators require infrastructure for processing and transportation.
Downstream users need facilities capable of consuming gas efficiently.
Power plants and industries may also need to modify or expand their equipment to use additional gas.
The government has attempted to support this investment through the Midstream and Downstream Gas Infrastructure Fund.
Ekpo said ₦671 billion had been deployed through the fund.
According to the minister, the public funding had attracted approximately ₦1.6 trillion in private investment across 31 projects and 205 infrastructure assets.
The projects are expected to deliver about 475 million standard cubic feet per day to the domestic market once fully operational.
The figures illustrate the government's attempt to use public funding to attract additional private-sector capital.
Infrastructure projects in the energy sector often require large amounts of upfront investment and can take several years to generate returns.
Government intervention can therefore be used to reduce some of the infrastructure constraints that may discourage private investors.
However, investors also consider issues such as regulation, pricing, contract enforcement, payment security, security conditions and the availability of reliable infrastructure.
The government's gas strategy is consequently linked to wider reforms in Nigeria's energy sector.
The latest domestic supply milestone comes after several years of concern about gas shortages.
Nigeria has large proven gas reserves, but the country has historically struggled to convert those resources into sufficient domestic supply.
Infrastructure constraints, investment delays, pipeline problems, commercial disputes and insufficient payment arrangements have all affected the development of the gas-to-power chain.
The Federal Government is now attempting to address some of those challenges through infrastructure projects and financial interventions.
The minister's announcement that domestic supply has crossed 2 billion cubic feet per day represents one measurable outcome of that strategy.
The next challenge is to ensure that the increase is sustained.
Gas production can fluctuate depending on field performance, maintenance, pipeline availability and other operational conditions.
A sustainable increase requires continuous investment.
It also requires predictable commercial arrangements between producers and consumers.
Gas producers need confidence that they will be paid for supplies.
Power companies and industrial users need confidence that gas will be available when required.
Pipeline operators need sufficient revenue to maintain infrastructure.
These elements are connected.
A problem in one part of the chain can affect the entire system.
For example, a gas producer may have available supply, but if the pipeline transporting the gas is unavailable, the gas may not reach the power plant.
Similarly, a power plant may have generating capacity but be unable to operate at full capacity if it does not receive sufficient gas.
This is why infrastructure development remains central to the government's gas strategy.
The completion of the OB3 pipeline could therefore have significance beyond the pipeline itself.
Its planned capacity is large enough to carry substantial volumes of gas to the domestic market.
The government expects the project to unlock additional supply.
The impact will depend on how quickly the pipeline enters full commercial operation and how effectively connected infrastructure is utilised.
The AKK pipeline is another major component.
At approximately 95 per cent completion, the project is approaching a stage where the remaining work and commissioning process become important.
Once operational, the pipeline could expand access to gas in northern Nigeria.
This could support industries that currently face energy constraints.
It could also create opportunities for new gas-based investments.
Industrial development depends heavily on dependable energy.
Manufacturers often need predictable power supplies to operate machinery continuously.
Where grid electricity is unreliable, businesses may rely on diesel or petrol generators.
Those alternatives can be more expensive and expose businesses to fluctuations in fuel prices.
Natural gas can provide another energy option for industrial users.
Greater availability could therefore support businesses that are capable of switching to gas-based systems.
The potential economic benefits extend to employment.
New gas infrastructure requires workers during construction and operation.
Gas-processing plants, power projects, fertiliser facilities and other downstream industries can also generate employment.
The wider industrial activity associated with gas can create additional demand for services, transportation, engineering and maintenance.
However, the number and quality of jobs created will depend on how much investment actually reaches operational projects.
The government's investment target therefore needs to be accompanied by project execution.
Nigeria's gas strategy also includes the expansion of liquefied natural gas.
The minister said Nigeria LNG's capacity utilisation had increased substantially compared with 2023.
Higher utilisation can strengthen Nigeria's position in international LNG markets.
Exports generate foreign exchange and can provide revenue for the economy.
At the same time, the government is seeking to expand domestic gas availability.
This creates a policy challenge because gas allocated for exports and gas supplied to domestic users must be balanced.
Nigeria needs foreign exchange earnings from exports, but domestic industries and power plants also require reliable supplies.
A growing production base can make it easier to serve both markets.
This is one reason the government's plans focus on increasing total production rather than simply redirecting existing supplies.
Higher production could allow Nigeria to increase domestic consumption while maintaining export opportunities.
The government is also pursuing gas-related projects that support transportation and household energy.
Compressed natural gas has become an important part of Nigeria's energy policy.
The minister said the number of vehicles converted to CNG had increased from approximately 11,000 in 2023 to more than 120,000.
The government is targeting at least one million CNG-powered vehicles and up to 1,000 refuelling stations.
The expansion is intended to create an alternative fuel option for transportation.
CNG can be produced from natural gas and used in specially converted vehicles.
For motorists and transport operators, the economic attractiveness of CNG depends on the cost and availability of the fuel, conversion expenses and the availability of refuelling infrastructure.
The government's target of one million vehicles therefore requires significant expansion of the supporting infrastructure.
Refuelling stations will need to be distributed across areas where there is sufficient demand.
Conversion centres will also need to be available.
Vehicle owners need confidence that they will be able to access fuel after conversion.
The growth of the CNG market can also create opportunities for companies involved in vehicle conversion, equipment supply, maintenance and distribution.
The government is additionally targeting greater access to liquefied petroleum gas for households.
Ekpo said the government wants five million households to gain access to LPG by 2030.
Cleaner cooking energy is another component of the wider gas strategy.
Many Nigerian households still depend on traditional cooking fuels.
Expanding access to LPG can provide an alternative, although affordability, cylinder availability, distribution infrastructure and safety remain important considerations.
The minister said the government was distributing free LPG cylinders as part of efforts to expand access.
The programme is intended to help households transition to cleaner cooking energy.
The gas sector therefore connects several different parts of Nigeria's economy.
It is linked to electricity generation, transportation, manufacturing, fertiliser production, household energy and exports.
The government's strategy is to develop these markets simultaneously.
The success of that strategy will depend on infrastructure, investment, affordability and regulation.
Another issue addressed by the minister was gas flaring.
Nigeria has long faced criticism over the continued flaring of associated gas produced during oil extraction.
Gas flaring wastes a potentially valuable resource and contributes to greenhouse-gas emissions.
The government has been pursuing commercialisation programmes designed to encourage companies to capture flare gas and put it to productive use.
Ekpo said contracts had been awarded to companies to convert flare gas into energy, feedstock, LPG, CNG and power.
The objective is to reduce routine flaring while creating economic value from gas that might otherwise be burned.
The commercialisation of flare gas could also contribute to the government's domestic supply objectives.
If captured gas is processed and transported effectively, it can become an additional source of energy for industries and households.
This illustrates the broader principle behind the government's gas strategy: increasing production is only one part of the challenge.
Nigeria must also capture, process, transport and consume the gas efficiently.
The government is therefore attempting to build a broader gas economy.
The term gas economy covers activities extending from exploration and production to processing, transportation, power generation, industrial use and household consumption.
A larger gas economy could diversify Nigeria's sources of economic activity.
It could also reduce dependence on imported energy products in some areas.
However, investment must be sustained for the benefits to materialise.
The latest figures provide evidence of progress, but they do not eliminate the challenges facing the sector.
The increase in domestic gas supply needs to be matched by sufficient demand and infrastructure.
Power plants need to be able to receive and pay for gas.
Industries need to have equipment capable of using it.
Pipeline systems need to remain operational.
Investors need predictable regulatory and commercial conditions.
These requirements make coordination between government agencies and private companies important.
The gas sector also involves multiple government institutions.
The Ministry of Petroleum Resources oversees policy.
The Nigerian Upstream Petroleum Regulatory Commission has regulatory responsibilities in the upstream sector.
Other agencies and companies are involved in pipelines, power generation and distribution.
Effective coordination among these institutions can reduce delays.
The government's latest announcement therefore represents not simply a production milestone but an update on a broader industrial strategy.
The target of 10 billion cubic feet per day by 2027 is close enough to require continued investment and project execution.
The 12 billion cubic feet per day target for 2030 provides a longer-term objective.
Whether those targets are reached will depend on production capacity, investment, infrastructure and market conditions.
The minister's announcement also provides an indication of how the government views natural gas within Nigeria's economic future.
Gas is being positioned as a major energy source for domestic development.
It is also being used as part of the country's energy-transition strategy.
While Nigeria continues to produce oil, gas can provide another source of energy and export revenue.
For businesses, greater gas availability could provide opportunities for new investments.
Manufacturers may consider gas-fired power.
Fertiliser producers can use gas as feedstock.
Petrochemical companies can build facilities around available gas.
Power developers can invest in gas-fired generation.
Transportation companies can expand CNG fleets.
Households can increase LPG use.
Each additional use can increase demand for gas infrastructure.
This can create a cycle in which investment in production supports infrastructure, infrastructure expands consumption and increased consumption creates additional demand for investment.
The government is attempting to encourage that cycle through its infrastructure fund and regulatory reforms.
The ₦671 billion deployed through the Midstream and Downstream Gas Infrastructure Fund is part of that approach.
The reported ₦1.6 trillion in private investment attracted through the fund indicates the scale of private capital being mobilised.
The government expects those projects to deliver additional gas to domestic users.
Their completion and operational performance will be important indicators of whether the investment is translating into actual supply.
The same applies to the OB3 and AKK pipelines.
Infrastructure announcements become economically meaningful when projects are completed, commissioned and used.
The government's latest update therefore shifts attention toward implementation.
Nigeria already has large gas reserves.
The central question is increasingly how efficiently those reserves can be converted into reliable energy and economic value.
The rise in domestic supply to more than 2 billion cubic feet per day is a measurable step in that process.
The next stages will involve increasing production further, completing major pipelines, expanding processing capacity and connecting more users.
Businesses will be watching the developments because energy availability affects operating costs and investment decisions.
Power companies will be watching because gas supply affects electricity generation.
Manufacturers will be watching because gas can provide industrial energy and feedstock.
Investors will be watching because infrastructure and regulatory conditions determine the viability of projects.
Households will also be affected as government expands CNG and LPG programmes.
The broader objective is to create an energy system in which Nigeria's gas resources support domestic economic activity while also generating export earnings.
That objective requires careful management of resources and investment.
It also requires attention to affordability.
Increasing supply does not automatically mean that energy becomes affordable for every consumer.
Prices depend on production costs, transportation, infrastructure, taxes, regulation and market conditions.
Government policies therefore need to consider both supply expansion and consumer access.
For industries, predictable supply can be as important as price.
A factory may be willing to pay for gas if it can rely on receiving the contracted volume consistently.
Unpredictable supply can disrupt production even when the nominal price is attractive.
This is why the minister's emphasis on infrastructure is important.
Pipelines and processing facilities provide the physical connection between gas producers and consumers.
The completion of major infrastructure could reduce some of the constraints that have historically limited domestic gas use.
The latest announcement also comes as Nigeria seeks to attract more foreign and domestic investment into the energy sector.
Investors generally require confidence that projects can operate over many years.
Stable regulations, clear contracts and functioning infrastructure can improve that confidence.
The government's target of $30 billion in gas investment by 2030 is therefore closely connected to the broader investment environment.
Achieving such a target would require continued participation from international energy companies, Nigerian businesses, financial institutions and infrastructure developers.
It would also require projects to move from announcements to construction and operation.
The reported $3.5 billion in investment decisions across four major gas projects provides another indication of activity in the sector.
Those projects include the Iseni, Ubeta, HI and Ima developments.
Together, they represent significant commitments to expanding Nigeria's gas production base.
The investment decisions are separate from the domestic supply milestone but contribute to the broader objective of increasing future production.
The combination of new upstream projects and new transportation infrastructure could expand the amount of gas available to domestic and export markets.
Nigeria's challenge is to maintain momentum.
The latest figures show that production and domestic supply have increased compared with 2023.
The government now wants further increases.
Businesses and investors will be looking for evidence that the infrastructure required to support those targets is delivered on schedule.
The success of the gas strategy will ultimately be measured not only in cubic feet produced but also in how that gas affects electricity generation, industrial output, investment, employment and household energy access.
For now, the crossing of the 2 billion cubic feet per day domestic supply threshold marks a new point in Nigeria's gas-sector development.
The government says it intends to build on that progress by raising production to 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030.
The completion of the OB3 pipeline and near-completion of the AKK pipeline are expected to support that objective.
Public funding through the Midstream and Downstream Gas Infrastructure Fund is also being used to attract private capital.
If the planned projects are completed and operate effectively, they could expand the role of natural gas across Nigeria's economy.
The immediate business question is whether increased supply can translate into reliable and commercially sustainable energy for industries, power producers and other users.
The longer-term question is whether Nigeria can build a gas economy capable of supporting domestic development while maintaining its position as an international energy exporter.
The Federal Government's latest figures indicate that domestic supply has already crossed the 2 billion cubic feet per day mark.
The next phase will depend on investment, infrastructure, production growth and the ability of businesses and households to make productive use of the additional gas.
For Nigeria's energy sector, the milestone represents both progress and a new benchmark against which future expansion can be measured.