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🇳🇬 Nigeria /Energy & Infrastructure

Nigeria records rise in gas output

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

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  • Nigeria's gross gas production increased to 7.63 billion standard cubic feet per day, with proven reserves now exceeding 215 trillion cubic feet.
  • The rise is attributed to presidential directives that improved the investment environment for deep-water and midstream gas projects, attracting over $4 billion in IOC divestments.
  • The administration views gas as a "development fuel" crucial for industrialization, aiming to convert resources into power, products, jobs, and exports.

Nigeria has seen a significant increase in its gross gas production, reaching 7.63 billion standard cubic feet per day, up from approximately 6.83 billion cubic feet per day in 2023. The nation's proven gas reserves now stand at over 215 trillion cubic feet.

The market responded. Nigeria’s share of African upstream Final Investment Decisions rose from about four per cent in 2023 to roughly 40 per cent across 2024 and 2025.

— Mrs Olu VerheijenThe Special Adviser highlighted the positive market response to improved investment conditions.

Mrs. Olu Verheijen, the Special Adviser to the President on Oil and Gas, attributed this growth to targeted presidential directives that enhanced the investment climate for deep-water, non-associated gas, and midstream infrastructure. These measures have successfully refocused over $4 billion from international oil company divestments into deep-water and integrated gas projects. Furthermore, the administration has streamlined business processes, reducing contracting times from 36 months to about 14 months, with a goal of reaching six months.

When Nigeria improves the rules of the game, capital returns to the field.

— Mrs Olu VerheijenShe explained the direct correlation between regulatory improvements and capital inflow.

Verheijen highlighted that Nigeria's share of African upstream Final Investment Decisions surged from about 4 percent in 2023 to roughly 40 percent across 2024 and 2025, with approximately $10 billion committed. Stalled projects are now progressing, bolstering long-term supply for LNG exports. The administration emphasizes gas not just as a transition fuel but as a "development fuel" essential for industrialization, powering everything from electricity generation and fertilizer production to manufacturing and clean cooking solutions.

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.

— Mrs Olu VerheijenShe articulated the administration's vision for gas utilization beyond mere production.

The government is also restoring financial viability to the gas-to-power sector, which had been hampered by accumulated arrears and weak payment discipline. A Presidential Power Sector Debt Reduction Programme has been established, with the Federal Executive Council approving a bond program of up to N4 trillion to settle verified arrears owed to generation and gas companies.

A nation does not grow wealthy by owning resources; it grows wealthy by converting them into value.

— Mrs Olu VerheijenShe emphasized the importance of value addition to natural resources.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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