A combination of regulatory reforms, renewed investor confidence and ambitious infrastructure plans is reshaping Nigeria’s gas industry, positioning the sector as one of the strongest pillars of the country’s economic transformation agenda.
New figures presented by the Special Adviser to the President on Oil and Gas, Mrs Olu Verheijen, suggest that international capital is once again flowing into Nigeria’s energy sector at a scale not seen in recent years. Speaking at the Nigerian-British Chamber of Commerce Energy Day 2026 in Lagos, she disclosed that Nigeria’s share of African upstream Final Investment Decisions expanded dramatically from about four per cent in 2023 to roughly 40 per cent across 2024 and 2025.
The increase has translated into significant financial commitments. Around $10 billion has already been committed to projects, while a visible pipeline estimated at about $500 billion points to substantial opportunities ahead.
The renewed appetite for investment has been accompanied by the revival of major developments that had previously stalled. Projects including Bonga North, Ubeta and HI Gas are progressing once more, alongside fresh non-associated gas developments expected to support long-term supply for Nigeria’s liquefied natural gas exports.
According to Verheijen, the resurgence did not happen by chance.
She attributed the shift to targeted government interventions designed to improve operating conditions across deep-water projects, non-associated gas developments and midstream infrastructure. More than $4 billion from international oil company divestments, she said, has been redirected into deep-water and integrated gas investments.
Equally important has been the effort to remove bottlenecks that historically slowed project execution. Contracting processes that once stretched to 36 months now take approximately 14 months, with authorities working toward a six-month target.
The reforms have created conditions that are beginning to reflect not only in investment statistics but also in production performance.
Nigeria’s gross gas production has climbed to 7.63 billion standard cubic feet per day from approximately 6.83 billion standard cubic feet per day in 2023. At the same time, the country’s proven gas reserves have risen to more than 215 trillion cubic feet, reinforcing Nigeria’s position as one of Africa’s most resource-rich gas producers.
Yet the larger ambition extends beyond production volumes.
The government is increasingly framing gas as a catalyst for industrialisation, seeing the resource not simply as a transition fuel but as a development fuel capable of driving broader economic growth. The vision places gas at the centre of electricity generation, fertiliser production, petrochemicals, manufacturing, clean cooking, compressed natural gas transportation and LNG exports.
“The goal is not simply to produce more gas; it is to ensure Nigerian gas becomes Nigerian power, Nigerian products, Nigerian jobs and Nigerian exports,” Verheijen said.
She argued that countries create lasting prosperity not merely by possessing natural resources but by converting those resources into value-creating industries and employment opportunities.
A critical part of that strategy involves strengthening the gas-to-power value chain, which has long been hindered by accumulated debts, weak payment discipline and tariff distortions.
To address these challenges, the government established the Presidential Power Sector Debt Reduction Programme. Under the initiative, the Federal Executive Council approved a bond programme of up to N4 trillion to settle verified obligations owed to generation and gas companies.
Verheijen disclosed that generation companies have already signed full and final settlement agreements worth about N2.28 trillion. The first tranche, a N501 billion Series 1 bond, has been issued and oversubscribed, with payments to generation and gas companies now underway. A second issuance valued at N729 billion is expected to complete the programme’s first phase.
She maintained that the intervention is not a bailout but a strategic effort to clear verified arrears, restore liquidity and provide operators with the confidence required to make long-term investments.
Taken together, the figures paint a picture of an industry gaining traction on multiple fronts. From rising production and expanding reserves to renewed project activity, stronger investment flows and reforms aimed at unlocking industrial value, Nigeria’s gas sector is increasingly emerging as a key driver of the country’s future economic growth.
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