How NNPCL And NUPRC Are Driving Nigeria’s Gas ‘Revolution’ For Economic Growth, By Prof. U. A. Danbatta

1.0 INTRODUCTION

The significance of natural gas as a critical energy source cannot be overstated, particularly in a world increasingly focused on sustainable energy solutions. Nigeria is sitting on reserves of 209 trillion cubic feet (TCF) of gas and is well-positioned to leverage this resource as a transition fuel – bridging the gap between fossil fuels and renewable energy while meeting the immediate energy demands of its citizens and industries.

At the forefront of this transformation are the Nigerian National Petroleum Company Limited (NNPC Ltd) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). These institutions are implementing a well-structured gas infrastructure development strategy, anchored on the Nigerian Gas Master Plan (NGMP), which was approved by the Federal Executive Council in 2008. 

The goal is to establish a robust gas infrastructure network that will stimulate economic growth, not only within Nigeria but across the African continent. Through strategic investments, NNPC Ltd and NUPRC are building the essential infrastructure required for increased production, transportation, and utilization of natural gas. 

Their efforts are crucial in facilitating Nigeria’s energy transition from non-renewable sources, enhancing industrialization, and strengthening regional energy security. The long-term impact extends beyond Nigeria, fostering deeper economic ties across Africa and positioning the continent as a competitive player in the global gas market.

This would strengthen ties across the global gas sectors and benefit the African continent and the world by driving economic growth and enhance energy security. Through strategic partnerships and innovative solutions, they are constructing pipelines, storage facilities, and other key infrastructure to facilitate the transportation and distribution of natural gas across the continent. 

Recent developments underscore this commitment. At the 8th Nigerian International Energy Summit (NIES 2025) held on February 24, 2025, in Abuja, the chief executives of NNPC Ltd and NUPRC reaffirmed their dedication to advancing Nigeria’s gas sector. 

Mele Kyari, Group Chief Executive Officer of NNPC Ltd, highlighted the company’s role in expanding gas infrastructure and utilization. Engr. Gbenga Komolafe, Chief Executive of NUPRC, emphasized efforts to eliminate gas flaring and promote sustainable practices through initiatives such as the Nigeria Gas Flare Commercialization Programme (NGFCP).

The collaborative efforts of NNPC Ltd and NUPRC are not just reshaping Nigeria’s energy landscape, they are laying the foundation for a sustainable, industrialized, and energy-secure future. 

Their initiatives align with the “Decade of Gas” vision, a national strategy aimed at expanding gas infrastructure, promoting environmental sustainability, driving industrialization, accelerating economic growth, and the realization of Nigeria’s full hydrocarbon potential. This article explores how NNPC Ltd and NUPRC are spearheading a gas revolution that ensures economic prosperity, energy security, and long-term sustainability for Nigeria and Africa.

2.0 NNPC LTD IS EXPANDING OUR CRITICAL GAS INFRASTRUCTURE 

NNPC Ltd, the state oil corporation of Nigeria, has been at the forefront of initiatives designed to enhance gas utilization in the country. It is leading Nigeria’s gas infrastructure expansion, ensuring increased production, commercialization, and accessibility of gas resources. This is evident in several initiatives the company is committed to, which include:

  1. i) Gas Transmission Systems

NNPC Ltd is developing and expanding gas transmission pipelines, such as the Ajaokuta-Kaduna-Kano (AKK) pipeline, a 614-kilometer infrastructure project  linking Nigeria’s southern gas fields with the north. This project strengthens domestic natural gas distribution from Obiafu (Rivers), Escravos (Delta), and Lekki (Lagos) to Kaduna and Kano, integrating Nigeria’s gas network.

The development of gas infrastructure is linked to the availability of skilled professionals, particularly in specialized fields like gas welding. NNPC Ltd collaborates with institutions like the Petroleum Training Institute (PTI) to enhance welding competencies, increasing employability, and contributing to industrial growth.

  1. Gas Infrastructure Expansion

NNPC Ltd is rehabilitating pipelines and depots to ensure consistent gas supply and maximize utilization. It is committed to delivering gas to domestic industries and power plants, bolstering local economies, and reducing reliance on imports. The company is expanding gas infrastructure across Africa, aligning with Nigeria’s “Decade of Gas” initiative. This includes developing new gas processing facilities and pipelines to meet growing demand.

NNPC Ltd has invested in various processing facilities and sustainable solutions, transforming natural gas into usable forms such as Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and Gas-to-Power projects. Notable projects include the Nigeria Liquefied Natural Gas (NLNG) project, which has positioned Nigeria as a major LNG exporter.

Key infrastructure developments include:

Nigeria Liquefied Natural Gas (NLNG): A six-train facility with a nameplate capacity of 22 million tonnes per annum (MTPA), positioning Nigeria among the world’s leading LNG exporters.

Upcoming LNG Projects: Olokola (OK LNG) and Brass LNG, which are in advanced planning stages.

Six Strategic Gas Projects: Announced  by NNPCL’s Group Chief Executive Officer, Mele Kyari

at NIES 2025, including three mini-LNG plants and additional CNG facilities to promote cleaner energy and industrial growth.

iii. Strategic Partnerships and International Collaborations

NNPC Ltd engages in partnerships with private sector players, international oil companies (IOCs), and development finance institutions to pool resources and expertise to advance gas infrastructure projects.

Notable partnerships include:

ANOH Gas Processing Plant (300 MMscf/d capacity): A joint venture with Seplat Energy Plc to increase domestic gas supply and reduce flaring.

ANOH-OB3 CTMS Gas Pipeline (23.3 km): Connecting ANOH’s processing plant to the OB3 pipeline, enhancing national gas distribution.

NNPC Ltd is constructing five mini-LNG plants in Kogi State to augment domestic gas supply and provide cleaner energy.

Dangote Refinery Gas Supply Agreement: A 10-year deal to supply 100 million standard cubic 

feet of gas daily for power generation and industrial use.

Nigeria-Morocco Gas Pipeline (7,000 km): A transcontinental project designed to transport 30 billion cubic meters of gas per year to Europe via the Maghreb-European Pipeline (MEP).

Trans-Saharan Gas Pipeline: A collaboration with Algeria to supply 2 billion scf/d of gas to Europe.

These concerted efforts strengthen Nigeria’s gas infrastructure and contribute significantly to the broader African economy, underscoring their commitment to fostering economic integration and energy security across West Africa.

3.0  NUPRC: ADVANCING REGULATORY FRAMEWORKS AND SUSTAINABILITY

NUPRC’s role extends beyond regulation to facilitating investments, enforcing sustainable practices, and ensuring Nigeria’s hydrocarbon potential is fully realized. NUPRC’s Commission Chief Executive, Engr. Gbenga Komolafe, outlined the detailed strategic reforms initiated under the Petroleum Industry Act (PIA) of 2021. 

These reforms aim to enhance regulatory effectiveness, attract investments, create an enabling environment for infrastructure development, and promote sustainable energy practices, including the Nigeria Gas Flare Commercialization Programme (NGFCP) and the Carbon Credits Earning Framework.

  1. i) Regulatory Oversight and Investment Attraction

Under the Petroleum Industry Act (PIA) 2021, NUPRC has created a robust framework for gas exploration, production, and processing. The commission oversees licensing, enforces environmental standards, and ensures investor-friendly policies. 

It has also introduced:

Oil and Gas Industry Service Permit (OGISP): Accrediting training centers to meet industry standards.

2025 Licensing Round: A strategic initiative to attract new investors.

Nigeria Upstream Oil and Gas Decarbonization Forum (March 2025): To promote emissions reduction strategies.

  1. ii) Sustainability Focus

NUPRC places a strong emphasis on sustainable practices within the gas sector. It is dedicated to managing Nigeria’s gas reserves effectively, promoting sustainable extraction, and ensuring that gas production aligns with national and regional energy needs. Leverage on gas and strengthening our focus on sustainability, Nigeria can reduce its reliance on petrol, and increase and decarbonise domestic transport fuel. 

To unlock the full value of Nigeria’s gas, NUPRC must focus on end-to-end solutions that promote exploration, production, cleaner technologies, gas processing, delivery of gas, and efficient gas utilization, including the Carbon Credits Earning Framework.

The commission aligns Nigeria’s gas development strategy with broader goals of enhancing energy infrastructure and sustainable growth. These initiatives contribute to the continent’s broader environmental goals and aspirations in the energy industry.

iii) Nigeria Gas Flare Commercialization Programme (NGFCP)

NGFCP aims to eliminate routine gas flaring by converting flared gas into economically viable products through competitive bidding and third-party investments. 

Benefits include:

Gas-to-Liquids Projects: Transforming flared gas into fuel and feedstock for industries.

Carbon Credit Earning Framework: Monetizing emissions reductions in line with global climate goals.

Adoption of Best Practices: Aligning with the World Bank’s Global Gas Flaring Reduction Partnership (GGFR).

4.0 ECONOMIC AND ENVIRONMENTAL IMPACTS

Gas development is linked to power generation, and it supports the development of petrochemicals, fertilizer production, methanol, and other gas-based industries, thereby generating employment opportunities and facilitating balanced economic growth. The synergy between NNPCL and NUPRC has led to significant advancements in welding training across Nigeria. 

For instance, the Centre for Inland Basins Studies (CIBS), Ahmadu Bello University Zaria, Kaduna State, will be offering professional certificate courses in welding technology that are structured to meet international standards, preparing graduates for opportunities both within and outside Nigeria. The concerted efforts of NNPC Ltd and NUPRC in developing gas infrastructure have far-reaching local and regional economic and environmental implications:

  1. i) Energy Security and Job Creation

Reliable gas supply fosters industrialization, employment, and economic diversification. The AKK pipeline will unlock 2.2 billion cubic feet of gas per day, add 3,600 MW to the national grid, and revitalize industries, including textiles.

NGFCP projects will create thousands of jobs in gas-based industries, power plants, and downstream sectors.

  1. ii) Regional Integration and Trade

Gas infrastructure development supports West African energy security, providing new markets and trade opportunities. NGFCP and GGFR are fostering international collaborations to accelerate gas commercialization and sustainable energy solutions. 

iii) Climate Change Mitigation

Reducing gas flaring significantly cuts greenhouse gas emissions, aligning Nigeria with the Paris Agreement and Net-Zero Carbon Emissions targets. Expanding gas usage as a transition fuel supports decarbonization and reduces reliance on high-emission energy sources. 

The NGFCP will decrease air pollutants associated with gas flaring, enhancing air quality, and reducing negative impacts on health and the environment. The shift towards cleaner energy sources like natural gas will help reduce deforestation and indoor air pollution, enhancing environmental sustainability and public health.

5.0 CONCLUSION AND RECOMMENDATIONS

Gas infrastructure development is crucial for Nigeria’s energy security and economic sustainability. While the PIA has laid a solid foundation, continued innovation, investment, and collaboration are necessary.

Key Recommendations include:

  1. Strengthen Industry-Academia Collaboration: Research institutions like the Centre for Inland Basins Studies (CIBS), Ahmadu Bello University, Zaria, should drive R&D efforts on gas flaring reduction and methane emission control. For instance, when engaged, the Centre of Inland Basins Studies (CIBS), Ahmadu Bello University (ABU) Zaria will collaborate with strategic stakeholders to ensure that the dynamic requirements of the industry are incorporated in academic curricula and research papers. 

This paradigm shift will allow CIBS ABU Zaria to complementing these efforts through workshops, training programmes, joint projects, development, and implementation of common strategies with other stakeholders, in knowledge sharing, technologies development and innovation. 

We will apply best practices to build the capacity and skills of the engineers and the technicians that will work in the gas sector. For sustainability, the gas industry will be developed on the back of indigenous knowledge and innovation.

  1. Encourage Private Sector-Led Infrastructure Development: Government should create investment-friendly policies for gas commercialization. Governments should focus on creating robust policies, and innovative solutions, aimed at protecting the environment, optimising the utilization of resources, and contributing to the global efforts in mitigating climate change. 

iii. Establish Petrochemical Hubs: Promoting gas-based industrialization can enhance self-sufficiency and reduce carbon emissions. 

  1. Leverage Digital Technologies: IoT-based smart metering can optimize gas utilization and revenue collection.
  2. Sustain Global Partnerships: Strengthening Nigeria’s participation in international gas initiatives will accelerate the energy transition.

Through these efforts, NNPC Ltd and NUPRC are laying the foundation for a cleaner, more prosperous energy future – solidifying Nigeria’s position as a global leader in gas development.

Prof. U. A. Danbatta is the Director of the Centre for Inland Basins Studies (CIBS), Ahmadu Bello University, Zaria.

 

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