Nigeria is stepping up efforts to transform its vast natural gas resources into a major driver of economic growth, with proven reserves rising to 215.19 trillion cubic feet (TCF), average production reaching approximately 7.5 billion cubic feet per day (BCF/D), and investments flowing into critical gas infrastructure and cleaner transportation.
The latest figures were disclosed by Taofeek Balogun, Workstream Lead for Infrastructure and Demand at the Decade of Gas Secretariat, during a media engagement in Kano. His presentation highlighted developments across gas production, pipeline construction, domestic supply, cleaner cooking and the expansion of compressed natural gas (CNG) for transportation.
The update also revealed progress in Nigeria’s efforts to attract private investment, reduce transportation costs and improve access to alternative energy sources.
From the completion of a major gas pipeline to plans for additional refuelling stations and the deployment of hundreds of CNG buses, the initiatives reflect the government’s ambition to make natural gas more accessible to households, businesses and transport operators.
However, sustaining this progress will depend on continued investment, reliable infrastructure, affordability and effective implementation of the country’s gas policies.
1. Nigeria’s Proven Gas Reserves Rise to 215.19 TCF
Nigeria’s proven natural gas reserves increased from 208.83 TCF in 2023 to 215.19 TCF as of January 2026, according to Balogun.
The increase reinforces the country’s position as a major holder of natural gas resources and highlights the potential for gas to contribute more significantly to its energy supply and economic development.
Natural gas is used in electricity generation, industrial production, fertiliser manufacturing and several other applications. It can also serve as an alternative fuel for vehicles and households, depending on the available infrastructure.
For Nigeria, expanding the development and utilisation of domestic gas resources could help support industrial activity, improve energy access and create opportunities across the energy value chain.
However, large reserves alone do not guarantee increased economic benefits. Investment in production facilities, processing plants, pipelines and distribution networks is essential to move gas from reserves to the consumers who need it.
The latest figures therefore highlight both the scale of Nigeria’s resources and the importance of continued infrastructure development.
2. Gas Production Reaches Approximately 7.5 BCF/D
Alongside the growth in proven reserves, Nigeria’s average gas production increased from 6.86 BCF/D to approximately 7.5 BCF/D, Balogun disclosed.
Domestic gas supply has also exceeded 2 BCF/D, indicating the volume being made available to support consumption within the country.
Reliable domestic supply is important for industries that depend on natural gas as an energy source or production input. Manufacturers, power producers and other commercial users require consistent supplies to plan operations, manage costs and maintain output.
Increasing production and domestic availability could help strengthen the role of gas in Nigeria’s energy mix, particularly where infrastructure allows consumers to access it reliably.
Nevertheless, production growth must be supported by adequate processing, transportation and distribution capacity. Without these supporting systems, additional gas resources may not translate into affordable and dependable supplies for end users.
The figures presented by the Decade of Gas Secretariat underline the importance of coordinating upstream production with investments in pipelines and domestic gas markets.
3. Four Major Gas Projects Attract $3.5 Billion in Investment
Balogun also disclosed that four major gas projects had attracted approximately $3.5 billion in committed investments.
The projects form part of wider efforts to expand Nigeria’s gas infrastructure and strengthen the commercial foundations of the sector.
Investment in gas projects can support the development of production facilities, processing capacity and transportation systems needed to bring resources to market.
Such projects may also generate employment opportunities, support local businesses and create demand for engineering, construction and technical services.
The scale of the reported commitments demonstrates the importance of mobilising capital to support Nigeria’s gas development ambitions.
However, committed investment should be distinguished from money already spent or projects that have reached completion. The pace at which the commitments translate into operational infrastructure will depend on project execution, financing arrangements and other implementation factors.
Balogun also highlighted the role of public infrastructure spending in attracting private capital. According to his presentation, ₦671 billion in public infrastructure funding had attracted approximately ₦1.6 trillion in private investment.
This relationship illustrates how government investment in essential infrastructure can help create conditions for additional private-sector participation.
For Nigeria’s gas industry, sustained collaboration between public institutions and private investors will remain important to expanding capacity and improving access to domestic markets.
4. OB3 Pipeline Completed as AKK Pipeline Nears the Finish Line
Pipeline construction remains central to Nigeria’s efforts to improve gas transportation and distribution.
Balogun reported that the OB3 Gas Pipeline had reached 100 per cent completion, while the Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline was approximately 95 per cent complete.
The OB3 pipeline is an important part of efforts to improve connectivity between gas-producing areas and domestic demand centres. Better pipeline links can help facilitate the movement of gas to power plants, industrial users and other consumers.
The AKK pipeline is intended to extend gas transportation infrastructure towards central and northern Nigeria, creating opportunities to supply additional markets and support industrial development.
Its strategic importance lies in improving the potential availability of natural gas in regions that could benefit from expanded energy infrastructure.
For northern communities and businesses, improved gas connectivity could support investment in manufacturing, commercial energy services and other gas-dependent activities, provided distribution infrastructure and commercially viable supply arrangements are developed.
The reported completion figures represent important milestones, although the practical benefits depend on commissioning, operational readiness and the development of connections serving end users.
Completing major pipelines is therefore one part of a broader process that must also include reliable supply, distribution networks and demand from businesses and households.
5. Nigeria Expands LPG Access to Support Cleaner Cooking
The Decade of Gas Secretariat is also promoting the use of liquefied petroleum gas (LPG) as part of efforts to improve access to cleaner cooking options.
Balogun highlighted an LPG programme targeting five million households by 2030. The initiative has recorded launches in Bayelsa and Akwa Ibom states, alongside distribution activities involving 27,000 LPG cylinders.
Regional LPG sensitisation programmes are also ongoing to raise awareness of the fuel and its potential applications.
LPG is commonly used for household cooking and can provide an alternative to traditional solid fuels. Wider adoption can help households access a more convenient cooking option, although affordability, distribution and safe handling remain important considerations.
Reaching five million households will require sustained efforts to make cylinders, refills and related equipment accessible to families across different income groups and locations.
Public education is also essential. Consumers need information about safe cylinder storage, proper handling, suitable equipment and the importance of purchasing LPG through appropriate channels.
The programme’s progress will therefore depend not only on distributing cylinders but also on establishing a reliable supply chain and ensuring households can afford to use the fuel regularly.
6. CNG Buses and Lower Transport Fares Gain Momentum
The expansion of compressed natural gas for transportation was another major focus of the Kano engagement.
Tosin Coker, Chief Operating Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (PI-CNG & EV), outlined how natural gas could help reduce transportation costs, strengthen energy security and support cleaner mobility.
According to Coker, 670 CNG buses had been deployed nationwide. Of these, 285 were operating commercially across 13 states, while 302 had been allocated to transport unions, students and government agencies.
The initiative is also supporting vehicle conversions, particularly in commercial transportation, to help drivers and operators reduce fuel expenses.
CNG can offer transport operators an alternative to conventional petrol and diesel, although actual savings depend on fuel prices, vehicle suitability, conversion costs and access to refuelling infrastructure.
Coker said participating CNG bus routes under the National Affordable CNG Transition Programme (NACTP) had recorded fare reductions ranging from 15 per cent to 50 per cent.
If sustained, lower fares could ease some of the financial pressure on commuters while helping transport operators manage fuel expenses.
However, these reductions apply to participating routes and should not be interpreted as a nationwide fare reduction across all public transport services.
Coker also disclosed that hundreds of additional CNG buses and tricycles were on order, pointing to a further expansion of the programme’s vehicle pipeline.
The initiative has also deployed 25 additional buses to complement earlier commercial deployments in the state, creating further opportunities for transport services and investment along the northern gas corridor.
7. Nigeria Plans 127 More CNG Stations Across 31 States
Expanding refuelling infrastructure is critical to the success of Nigeria’s CNG transition.
PI-CNG & EV highlighted plans for 127 additional CNG refuelling stations across 31 states, including the Federal Capital Territory.
More stations could improve access to CNG for commercial drivers, fleet operators and private motorists, making it easier to use gas-powered vehicles beyond a limited number of locations.
The initiative also identified Kano as a strategic hub for clean mobility development in northern Nigeria.
During the media engagement, participants noted that Kano was leading the North-West with seven operational CNG refuelling stations, while 17 additional stations were at different stages of completion.
The expansion could strengthen the region’s potential to support gas-powered transportation and attract related investment.
Nevertheless, the practical impact will depend on when the planned stations become operational, how reliably they are supplied and whether their locations match transport demand.
Refuelling infrastructure must grow alongside vehicle conversions and bus deployments to ensure that motorists can access fuel conveniently.
CNG safety remains a priority
Coker also addressed public concerns about the safety of CNG-powered vehicles.
He emphasised the importance of certified conversion centres, approved equipment, regulatory compliance and proper vehicle maintenance.
These measures are essential because converting a vehicle to use a different fuel requires appropriate technical standards and regular inspection.
Drivers and fleet operators must also understand the maintenance requirements of their vehicles and use qualified service providers.
Public confidence will depend on transparent safety procedures, effective oversight and clear information about the correct use of CNG equipment.
Gas Market Reforms Target September 2028
Beyond infrastructure and transportation, Nigeria is preparing for a transition towards a Willing Buyer, Willing Seller (WBWS) gas market framework, with a target date of September 24, 2028.
Balogun said the proposed framework is intended to improve market competitiveness, transparency and commercial sustainability.
A willing buyer, willing seller arrangement generally places greater emphasis on commercial negotiations between buyers and sellers, subject to the applicable regulatory framework.
For Nigeria’s gas sector, the proposed transition could affect how market participants negotiate supply arrangements and respond to changing demand and commercial conditions.
Its effectiveness will depend on the implementation details, market structure, infrastructure availability and the ability of buyers and sellers to operate under the revised arrangements.
The target date signals the government’s intention to continue reforming the commercial environment in which natural gas is traded and supplied.
Kano Media Engagement Seeks to Improve Public Understanding
The developments were presented during a capacity-building session organised by the Decade of Gas Secretariat in collaboration with PI-CNG & EV at Porto Golf Hotels in Kano.
The programme brought together approximately 27 journalists from television, radio, print and digital media organisations to improve their understanding of Nigeria’s gas development agenda.
The Kano session was the initiatives’ first formal engagement with journalists in the state, following similar sessions in Lagos, Abuja and Port Harcourt.
Discussions covered gas accessibility, affordability, safety, infrastructure development and the implementation of government policies.
Speaking on behalf of participating journalists, Murtala Adewale of The Guardian, who is also Chairman of the Nigeria Union of Journalists Correspondents’ Chapel in Kano, commended the organisers for what he described as an informative and beneficial engagement.
He called for more frequent capacity-building programmes, wider journalist participation and stronger collaboration with industry stakeholders and regulatory agencies.
The organisers reaffirmed their commitment to continued media engagement, stakeholder collaboration and public education as Nigeria pursues its gas development objectives.
Can Natural Gas Deliver Nigeria’s Next Wave of Economic Growth?
Nigeria’s latest gas sector figures point to progress in reserves, production, investment and infrastructure development. The expansion of CNG transportation and LPG distribution also shows how policymakers are seeking to connect gas resources with everyday economic needs.
The potential benefits extend beyond the energy industry. Reliable gas supplies could support manufacturing and electricity generation, while CNG could provide an alternative fuel for transport operators and LPG could widen access to cleaner cooking.
However, the country’s ability to realise these benefits will depend on converting investment commitments and infrastructure milestones into dependable services that consumers can afford.
Pipeline completion, additional refuelling stations, safe vehicle conversions and a functioning gas market will all be important parts of that process.
For now, the Decade of Gas Secretariat and PI-CNG & EV are emphasising infrastructure development, private investment and public awareness as key elements of Nigeria’s strategy.
Whether these efforts deliver lasting economic benefits will ultimately depend on implementation, affordability and the ability to connect the country’s substantial gas resources with the households, businesses and industries that need them.
