Two years after President Bola Tinubu carved out a separate gas ministry to fast-track development and utilisation of Nigeria’s vast gas reserves, the country has seen a surge in project announcements, groundbreakings, and investor commitments. Under Minister Ekperikpe Ekpo, pipelines like the AKK and OB3 have moved closer to completion, while new terminals and mini-LNG plants are taking shape. But behind the optics of progress lie persistent challenges as struggle to access clean cooking gas, and affordability continues to hinder widespread adoption. WALIAT MUSA writes…
Two years into President Bola Tinubu’s administration, Nigeria’s gas sector has undergone a visible transformation. His landmark decision to unbundle the gas portfolio from the Ministry of Petroleum Resources and create a standalone Ministry of State for Gas marked a clear political statement: that gas is no longer a subsidiary of oil, but a strategic driver of Nigeria’s energy future.
The creation of a standalone ministry in 2023 signaled a strategic shift in national energy priorities, a move designed to harness Nigeria’s 209 trillion cubic feet of gas as a driver of economic growth, cleaner energy, and industrial revitalisation.
While infrastructure strides and investor confidence have grown under Minister Ekperikpe Ekpo’s leadership, the real measure of success lies in inclusive implementation ensuring that the transformative power of gas touches not just boardrooms and city centres, but the everyday lives of ordinary Nigerians.
As the pioneer Minister of State Petroleum Resources (Gas), the appointment of Rt. Hon. Ekperikpe Ekpo, a scholar with a Ph.D. in Environmental Pollution and Toxicology, as the pioneer Minister of State Petroleum Resources (Gas) signaled a deliberate shift toward focused development of Nigeria’s vast natural gas reserves, estimated at 209 trillion cubic feet.
Under this directive, Ekpo has overseen a flurry of activity, from the accelerated development of the Ajaokuta-Kaduna-Kano (AKK) pipeline and the OB3 line, to the launch of LPG terminals, CNG mother stations, and mini-LNG plants. Major investments, including the long-stalled Brass Methanol Project, have been revived, and key regulatory reforms are unlocking billions in private capital.
The Federal Government has prioritised the completion of strategic projects including the $2.8 billion Ajaokuta-Kaduna-Kano (AKK) gas pipeline and the Obiafu-Obrikom-Oben (OB3) pipeline, vital arteries for national gas distribution.
At the 2025 Oloibiri Lecture Series in Abuja, NNPC Limited’s Group Chief Executive Officer, Bayo Ojulari, reported 72 per cent completion of the AKK pipeline by Q1 2025.
Ekpo has toured this project in the last two years repeatedly to ensure resolutions of snags and their speedy completion given their critical importance to gas distribution to end users in the country.
“The Federal Government is attracting investment in LNG, CNG, and gas-to-chemicals, and by fostering a business-friendly environment, Nigeria is building a sustainable gas ecosystem that drives industrialisation, job creation, and energy security, ensuring a cleaner and prosperous future,” Ekpo said.
The ministry’s achievements also span environmental commitments such as the NNPC/TotalEnergies joint venture reaching zero routine gas flaring and attracting investments in LNG, CNG and gas-to-chemicals facilities. Notable groundbreaking events have been held for LPG terminals and CNG mother stations across several states, while mini-LNG plants in Ajaokuta promise to create upwards of 300,000 jobs.
Efforts to resolve long-standing Gas Sales Purchase Agreement (GSPA) challenges have unlocked a $3.3 billion investment in the Brass Methanol Project. Furthermore, domestic LPG production domestication has driven down cooking gas prices, aligning with the government’s poverty reduction goals.
Infrastructure inaugurations under this administration include gas processing plants, modern LPG vessels, CNG/autogas facilities, and gas hubs, complemented by incentives like the Ride Share CNG Conversion Programme, which reduces costs for drivers. Collaboration with the Ministry of Power to tackle low gas supply to thermal plants demonstrates a holistic approach to Nigeria’s energy challenges.
The Midstream and Downstream Gas Infrastructure Fund (MDGIF), under Ekpo’s leadership, has allocated approximately N122 billion to private investors for critical infrastructure development. Strategic commitments such as Jindal Steel Group’s $4 billion investment further underscore growing investor confidence.
The ministry is also pioneering clean energy initiatives through a national hydrogen policy aimed at positioning Nigeria in the global hydrogen economy, while grassroots programmes target LPG penetration in underserved regions like the North-East.
Ekpo, who spoke during the inception meeting with stakeholders for the development of the hydrogen policy, harped on the immense potential of both Blue and Green hydrogen in Nigeria, citing the country’s abundant natural resources, strategic geographic position, and potential for industrial transformation and global leadership in the clean energy revolution.
“This policy will chart a definitive course for integrating hydrogen into our energy mix, while positioning Nigeria as a significant player in the global hydrogen economy,” he said.
Despite these visible transformations, challenges persist. Critics argue that the benefits of gas sector reforms have yet to reach many Nigerians, especially in rural communities where energy poverty remains high. Affordability concerns linger as LPG and CNG, though cheaper than alternatives, remain out of reach for many low-income households. Implementation gaps and bureaucratic delays occasionally stall project progress, risking loss of investor confidence.
Some analysts caution that without robust regulatory enforcement and transparent governance, ambitious infrastructure goals may not deliver the inclusive growth envisioned. Questions also remain on the ministry’s ability to sustain momentum beyond the current administration and ensure policy continuity.
Executive Director of CISLAC, Auwal Musa Rafsanjani, emphasised the importance of a data-driven evaluation of government commitments to gas access and affordability for vulnerable Nigerians. “Based on available statistics and public records, the challenges revolve around grossly inadequate infrastructure, insufficient social security measures for vulnerable groups, and the urgent need for subsidised costs,” he said.
On concerns regarding transparency and accountability in executing gas infrastructure projects, Rafsanjani pointed to poor communication and limited public sensitisation about Nigeria’s gas plans. He also noted that locating infrastructure mostly in urban centers excludes the most vulnerable rural communities from benefits.
On the role of civil society, Rafsanjani stated, “Civil society should be at the forefront of promoting transparency by monitoring revenues, subsidies, and infrastructure projects. We must advocate for inclusive policies ensuring gas access and affordability, engage communities in reporting social and environmental impacts, provide independent ESG assessments, and foster stakeholder dialogue for equitable reforms.” He further called for collaborative advocacy on tax justice and providing free cooking gas stoves for Nigerians.
Regarding government incorporation of civil society inputs, he recommended formal, inclusive consultation mechanisms during policy development and project planning, ongoing multi-stakeholder engagement, public hearings, feedback loops, and integration of CSO monitoring frameworks to enhance policy responsiveness and accountability.
To build on current progress, it is recommended that the Federal Government strengthen regulatory frameworks to enhance transparency and accountability across gas projects, expand rural energy access programmes, subsidise LPG and CNG distribution for low-income households.
Stakeholders also recommended that the Federal Government should prioritise capacity building within the ministry and its agencies to accelerate project implementation, foster greater collaboration between the gas ministry, power sector, and private investors to optimize gas utilisation for industrial growth and ensure consistent community engagement to align infrastructure projects with local needs, reducing resistance and improving adoption rate.
Energy expert, Dr. Ayodele Oni, has commended the creation of a dedicated gas ministry as a step in the right direction towards repositioning Nigeria’s gas sector, noting that it has helped to sharpen policy focus and catalyse reforms. However, he warned that persistent regulatory delays, weak enforcement, and lack of incentives continue to undermine broader progress.
Speaking on the effectiveness of the Minister of State for Petroleum Resources (Gas), introduced in 2023 during a strategic restructuring of the petroleum ministry, Oni acknowledged the renewed push for infrastructure completion and sectoral visibility.
“Since the role’s inception, there has been a concerted push to finalise major infrastructure projects like the AKK (Ajaokuta-Kaduna-Kano) Gas Pipeline, designed to enhance energy distribution across Northern Nigeria. Similarly, the OB3 Gas Pipeline project aims to transport gas between the eastern and western parts of the country, facilitating regional development. Furthermore, the flagship Brass Methanol Project is set to position Nigeria as a key player in global methanol production, diversifying its energy portfolio and contributing to economic growth. This comprehensive approach reflects Nigeria’s ambition to leverage its vast natural gas resources, addressing both local energy needs and global market demands,” he said.
Despite these developments, Oni cautioned that the full potential of Nigeria’s vast gas reserves remains stifled by unresolved policy and regulatory bottlenecks. He highlighted the slow operationalisation of key provisions under the Petroleum Industry Act (PIA), especially the Midstream and Downstream Gas Infrastructure Fund and the Domestic Gas Delivery Obligation (DGDO), as significant drawbacks.
“The instability in gas prices further complicates investment prospects and hampers domestic gas utilisation. The market’s volatility often deters potential investors and challenges existing operations, highlighting the need for stable pricing mechanisms and predictable regulatory enforcement to bolster investor confidence and secure sustainable growth in the sector,” he said.
He stressed that affordability and accessibility of gas, particularly Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG) remain out of reach for many rural and low-income Nigerians due to skewed investment priorities, forex-induced price volatility, and the absence of pro-poor subsidy frameworks.
“Compounding these issues is the predominantly urban-focused distribution network, which severely limits penetration and accessibility for rural communities. This scenario calls for a reevaluation of the investment landscape and the introduction of supportive policies to bolster the gas sector, including the expansion of distribution networks into rural areas to ensure broader accessibility and affordability,” he emphasised.
However, on the challenges of availability and affordability of LPG in rural areas, Ekpo has flagged off the North-East Decade of Gas Clean Cooking (LPG) Grassroots Penetration Programme, reaffirming the Federal Government’s commitment to tackling the North-East region’s energy challenges and ensuring clean energy becomes accessible and affordable for all.
Ekpo emphasised the federal government’s unwavering commitment to making LPG available and affordable for all Nigerians, acknowledged the North-East’s significant energy challenges and expressed determination to make clean energy accessible and affordable.
“We recognise the North-East has faced significant energy challenges, and we’re determined to make clean energy accessible and affordable to all. Through collaborative efforts, we can achieve our vision of a gas-powered Nigeria,” he noted. He stressed that the Decade of Gas Initiative aims to transform Nigeria into a gas-powered economy, ensuring no region is left behind.