NNPC projects N16.94Tn infrastructure deficit to power Nigeria’s gas future

The Nigerian National Petroleum Company (NNPC) Limited has sounded a financial alarm, estimating that a staggering ₦16.94 trillion ($22 billion) is required to upgrade and expand Nigeria’s gas pipeline infrastructure.

This figure was detailed in the NNPC Gas Master Plan 2026, released on January 20.

Despite an improvement in Domestic Gas Delivery Obligations (DGDO) rising from 50% five years ago to 70% in 2024, the report warns of an impending shortage.

By 2030, NNPC projects that gas demand will exceed supply across all forecasted scenarios. To bridge this gap, Nigeria must prioritize high-impact economic demand in sectors such as power generation, gas-based industries (GBI) like fertilizer plants, and commercial sectors.

Exports will continue to be dominated by Liquified Natural Gas (LNG), which historically accounts for 95% of volumes.

Nigeria currently manages over 2,500km of gas pipelines. The Master Plan hinges on the completion of the Ajaokuta-Kaduna-Kano (AKK) and the Obiafu-Obrikom-Oben (OB3) pipelines to create a truly national distribution loop.

NNPC aims to increase gas commercialization from 60% to 80% by 2030, with production goals reaching 15 billion standard cubic feet per day (Bscf/d).

Nigeria holds 210 trillion cubic feet (TCF) of proven reserves the largest in Africa yet ranks only 16th in global production.

NNPC maintained that without the ₦16.94 trillion investment to unlock offshore clusters and hubs like Gbaran-Soku-Obagi (OBOB), the nation's vast resources will remain underutilized while the domestic economy continues to struggle with energy poverty.