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Nigeria is positioning itself to unlock as much as $20 billion in new investments from 70 priority gas projects over the next few years, as Africa’s biggest economy accelerates efforts to turn its vast natural gas reserves into a springboard for industrialisation, job creation, and energy security.

The projects, drawn from a pool of more than 200 reviewed by the Decade of Gas Secretariat between July and August, represent the most viable opportunities to propel Nigeria toward its 2030 goal of becoming a gas-powered economy, according to Farouk Ahmed, chief executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

“These identified projects represent near-term opportunities with the potential to attract over $20 billion in new investment, create tens of thousands of jobs, and catalyse industrial activity across the country,” Ahmed said in Lagos at the opening of the Gas Utilisation Unlock Validation Series convened under the government’s Decade of Gas initiative.

The 70 projects, spread across six key demand clusters, power generation, fertiliser, petrochemicals, industrial feedstock, compressed and liquefied petroleum gas (CNG/LPG), and gas export, have a combined potential gas demand of about 15 billion standard cubic feet per day (bscfd).

They were selected from a broader database of 215 proposed utilisation projects, which together accounted for an estimated 30 bscfd of demand, Ahmed said.

The NMDPRA chief noted that a three-week validation process, which began this week, will rigorously test the credibility of these projects by matching supply with demand, establishing pricing mechanisms, and identifying infrastructure and policy enablers needed to accelerate implementation.

“This validation series is not only an audit of projects; it is also a way to speed up their implementation,” Ahmed told industry leaders. “Each project team will work closely with the NMDPRA and the Decade of Gas Secretariat to validate technical, commercial, and financial assumptions, find quick-win solutions to remove bottlenecks, and assign clear responsibilities and timelines.”

Launched in 2021, the Decade of Gas Initiative is Nigeria’s flagship energy transition agenda aimed at harnessing the country’s more than 200 trillion cubic feet of proven natural gas reserves. The initiative focuses on four pillars, supply, infrastructure, pricing, and utilisation, with an overarching goal of positioning gas as the primary fuel for the nation’s industrial growth and export diversification.

Nigeria currently struggles with under-utilisation of its gas potential despite holding the largest reserves in Africa. Industry bottlenecks, including infrastructure deficits, regulatory overlaps, and market uncertainties, have constrained investment and limited gas-to-power, manufacturing, and petrochemical development.

Ahmed acknowledged these structural challenges but said the current review process was designed to “unlock the final drivers” required to realise the program’s strategic objectives. “Through our coordinated actions, Nigeria is emerging as a major and respected hub for energy supply to Africa and the globe,” he said. “We are building a regional hub for refined products trading and a natural gas exchange platform.”

The NMDPRA, created under the Petroleum Industry Act (PIA) to regulate midstream and downstream operations, has moved to enhance the investment climate by reforming key aspects of gas market regulation.

Ahmed highlighted the operationalisation of the Nigerian Gas Transportation Network Code, which has improved network pressures and overall supply stability. The Authority has also introduced market-based pricing frameworks and new licensing regimes aimed at supporting private sector-led investments in processing, transportation, and utilisation infrastructure.

“The regulatory enablement required for effective pricing of gas and tariffing of gas transportation operations has been achieved, leading to a more stable and market-based pricing regime for gas in the domestic sector,” Ahmed said.

He added that Nigeria’s gas sector reforms are being aligned with global sustainability standards, including compliance with the EU Methane Emission Reduction Regulation (MER 2024/1787) and the UN-backed Oil and Gas Methane Partnership (OGMP 2.0) on measurement, reporting, and verification.

“These sustainability initiatives will ensure our gas industry is competitive, environmentally responsible, and investment-friendly,” Ahmed said.

According to the NMDPRA, the Gas Demand Compendium developed under the Decade of Gas Secretariat provides a framework for aligning supply, infrastructure, and end-use demand. The compendium outlines the infrastructure gaps, potential supply zones, and market linkages needed to connect gas resources to productive sectors efficiently and profitably.

Ahmed urged stakeholders, including regulators, operators, and investors, to treat the validation process as a collective commitment to accelerate delivery.

“This is a defining moment for our industry,” he said. “The global energy landscape is shifting, and time is not on our side. We must act quickly, with discipline and strategic collaboration, to move our gas projects from concept to execution.”

Nigeria’s push to monetise its gas comes at a critical time. The nation’s oil revenues have been under strain from production declines and theft, while its energy demand continues to soar. Gas is viewed as both a transitional fuel and a catalyst for development, capable of powering electricity generation, driving fertiliser and petrochemical production, and providing cleaner alternatives to diesel and firewood.

Analysts say attracting $20 billion in new gas investments will require clear incentives, consistent regulation, and guaranteed market access. But with the NMDPRA’s reforms and growing global interest in low-carbon fuels, industry insiders believe Nigeria could become a gas export and industrial hub for West and Central Africa within the decade.

Ahmed remains optimistic. “Our target remains to provide the necessary regulatory environment that will foster the accelerated growth of energy supply infrastructure, enhance energy security, and strengthen the competitiveness of Nigeria’s petroleum industry,” he said.

He concluded with a call to action: “Within the next 12 to 24 months, we must start commissioning critical gas development projects that will anchor the Decade of Gas and define Nigeria’s energy future.”

Nigeria is positioning itself to unlock as much as $20 billion in new investments from 70 priority gas projects over the next few years, as Africa’s biggest economy accelerates efforts to turn its vast natural gas reserves into a springboard for industrialisation, job creation, and energy security.

The projects, drawn from a pool of more than 200 reviewed by the Decade of Gas Secretariat between July and August, represent the most viable opportunities to propel Nigeria toward its 2030 goal of becoming a gas-powered economy, according to Farouk Ahmed, chief executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

“These identified projects represent near-term opportunities with the potential to attract over $20 billion in new investment, create tens of thousands of jobs, and catalyse industrial activity across the country,” Ahmed said in Lagos at the opening of the Gas Utilisation Unlock Validation Series convened under the government’s Decade of Gas initiative.

The 70 projects, spread across six key demand clusters, power generation, fertiliser, petrochemicals, industrial feedstock, compressed and liquefied petroleum gas (CNG/LPG), and gas export, have a combined potential gas demand of about 15 billion standard cubic feet per day (bscfd).

They were selected from a broader database of 215 proposed utilisation projects, which together accounted for an estimated 30 bscfd of demand, Ahmed said.

The NMDPRA chief noted that a three-week validation process, which began this week, will rigorously test the credibility of these projects by matching supply with demand, establishing pricing mechanisms, and identifying infrastructure and policy enablers needed to accelerate implementation.

“This validation series is not only an audit of projects; it is also a way to speed up their implementation,” Ahmed told industry leaders. “Each project team will work closely with the NMDPRA and the Decade of Gas Secretariat to validate technical, commercial, and financial assumptions, find quick-win solutions to remove bottlenecks, and assign clear responsibilities and timelines.”

Launched in 2021, the Decade of Gas Initiative is Nigeria’s flagship energy transition agenda aimed at harnessing the country’s more than 200 trillion cubic feet of proven natural gas reserves. The initiative focuses on four pillars, supply, infrastructure, pricing, and utilisation, with an overarching goal of positioning gas as the primary fuel for the nation’s industrial growth and export diversification.

Nigeria currently struggles with under-utilisation of its gas potential despite holding the largest reserves in Africa. Industry bottlenecks, including infrastructure deficits, regulatory overlaps, and market uncertainties, have constrained investment and limited gas-to-power, manufacturing, and petrochemical development.

Ahmed acknowledged these structural challenges but said the current review process was designed to “unlock the final drivers” required to realise the program’s strategic objectives.

“Through our coordinated actions, Nigeria is emerging as a major and respected hub for energy supply to Africa and the globe,” he said. “We are building a regional hub for refined products trading and a natural gas exchange platform.”

The NMDPRA, created under the Petroleum Industry Act (PIA) to regulate midstream and downstream operations, has moved to enhance the investment climate by reforming key aspects of gas market regulation.

Ahmed highlighted the operationalisation of the Nigerian Gas Transportation Network Code, which has improved network pressures and overall supply stability. The Authority has also introduced market-based pricing frameworks and new licensing regimes aimed at supporting private sector-led investments in processing, transportation, and utilisation infrastructure.

“The regulatory enablement required for effective pricing of gas and tariffing of gas transportation operations has been achieved, leading to a more stable and market-based pricing regime for gas in the domestic sector,” Ahmed said.

He added that Nigeria’s gas sector reforms are being aligned with global sustainability standards, including compliance with the EU Methane Emission Reduction Regulation (MER 2024/1787) and the UN-backed Oil and Gas Methane Partnership (OGMP 2.0) on measurement, reporting, and verification.

“These sustainability initiatives will ensure our gas industry is competitive, environmentally responsible, and investment-friendly,” Ahmed said.

According to the NMDPRA, the Gas Demand Compendium developed under the Decade of Gas Secretariat provides a framework for aligning supply, infrastructure, and end-use demand. The compendium outlines the infrastructure gaps, potential supply zones, and market linkages needed to connect gas resources to productive sectors efficiently and profitably.

Ahmed urged stakeholders, including regulators, operators, and investors, to treat the validation process as a collective commitment to accelerate delivery.

“This is a defining moment for our industry,” he said. “The global energy landscape is shifting, and time is not on our side. We must act quickly, with discipline and strategic collaboration, to move our gas projects from concept to execution.”

Nigeria’s push to monetise its gas comes at a critical time. The nation’s oil revenues have been under strain from production declines and theft, while its energy demand continues to soar. Gas is viewed as both a transitional fuel and a catalyst for development, capable of powering electricity generation, driving fertiliser and petrochemical production, and providing cleaner alternatives to diesel and firewood.

Analysts say attracting $20 billion in new gas investments will require clear incentives, consistent regulation, and guaranteed market access. But with the NMDPRA’s reforms and growing global interest in low-carbon fuels, industry insiders believe Nigeria could become a gas export and industrial hub for West and Central Africa within the decade.

Ahmed remains optimistic. “Our target remains to provide the necessary regulatory environment that will foster the accelerated growth of energy supply infrastructure, enhance energy security, and strengthen the competitiveness of Nigeria’s petroleum industry,” he said.

He concluded with a call to action: “Within the next 12 to 24 months, we must start commissioning critical gas development projects that will anchor the Decade of Gas and define Nigeria’s energy future.”