Nigeria is unable to fully harness its vast gas resources due to poor infrastructure, environmental concerns, and policy inconsistencies, the Federal Government has said.
The Chairman of the National Gas Expansion Programme (NGEP), Prof. Mohammed M. Ibrahim, highlighted these challenges at the 6th West Africa LPG Expo in Lagos.
Ageing pipelines and limited infrastructure
Nigeria’s major gas fields, including Bonga, Amenam, and Utorogu, are underdeveloped because of ageing pipelines, processing limitations, and political instability. Ibrahim noted that many areas still lack access to gas due to poor midstream and downstream infrastructure, which affects power supply, industrial growth, and economic diversification.
High costs of exploration, pipeline construction, and processing plants have also slowed progress. Although the Petroleum Industry Act (PIA) 2021 created a Midstream and Downstream Gas Infrastructure Fund to improve financing, challenges remain, especially in manufacturing critical equipment locally.
Environmental concerns and policy issues
Gas flaring, oil spills, and soil contamination in the Niger Delta continue to create conflicts with local communities who feel neglected. While the government has introduced tax incentives and import duty waivers to attract investors, unclear policies and slow implementation discourage foreign investment.
Need for a broader gas strategy
Ibrahim warned that Nigeria’s focus on compressed natural gas (CNG) alone is risky and called for a more diverse approach to gas use. He urged for more public private partnerships, local equipment manufacturing, and stricter adherence to regulations to unlock the sector’s full potential.
The NGEP aims to drive these reforms and transition Nigeria from an oil-dependent economy to a gas-powered future. However, without urgent action to fix infrastructure gaps, address environmental issues, and boost investor confidence, Nigeria may fail to benefit from its vast gas reserves.
