The Nigerian National Petroleum Company Limited and industry stakeholders have intensified efforts to attract investors ahead of the expected first gas delivery from the Ajaokuta–Gwagwalada segment of the Ajaokuta–Kaduna–Kano Gas Pipeline by July 2026.
The project, a key component of the AKK pipeline network, is expected to boost domestic gas supply, support power generation, and stimulate industrial growth across northern Nigeria. Officials expressed confidence that its completion will unlock significant economic opportunities along the corridor.
NNPC has called on investors to take advantage of emerging opportunities in compressed natural gas infrastructure, emphasising that Nigeria has transitioned from an oil-focused economy to a gas-first nation in its drive for energy security and industrial growth.
The Executive Vice President, Gas, Power and New Energy of NNPC, Olalekan Ogunleye, made the call in a statement on Friday, following a stakeholders’ workshop on mini-LNG and L-CNG infrastructure in Abuja, where he was represented by Kachala Suleman.
The workshop, convened by Portland Gas Limited, highlighted investment opportunities in a proposed mini-LNG and L-CNG station in Gwagwalada, Abuja, which stakeholders said would strengthen Nigeria’s gas commercialisation and transportation reform agenda.
In his address titled “Powering the Future: Leveraging CNG Infrastructure to Drive Nigeria’s Energy Transition and Sustainable Growth,” Ogunleye emphasised the nation’s strategic shift from oil to gas.
“For decades, Nigeria was described as an oil nation that happened to have some gas. That narrative has now been permanently retired.
“As we advance the implementation of the NNPC Gas Master Plan and execute the national Decade of Gas agenda, Nigeria has become a gas-first nation—strategically, commercially, and operationally”, he said.
Ogunleye disclosed measurable targets to scale gas output in line with national economic goals.
“Our mandate is clear and measurable. We aim to increase national gas production to 10 billion cubic feet per day by 2027 and scale further to 12 billion cubic feet per day by 2030. These are economic necessities for a country of over 230 million people seeking industrial revival, energy security, and global competitiveness,” he said.
Highlighting opportunities for investors, he said: “Nigeria holds over 210 trillion cubic feet of proven gas reserves, among the largest in Africa. Domestic supply has already surpassed 2 billion cubic feet per day, signalling readiness for industrial expansion.”
Ogunleye added that the CNG segment had attracted over $200 million in private investment commitments and over 300 conversion centres nationwide.
“Our target is one million CNG vehicle conversions by 2027. Each conversion reduces fuel imports, preserves foreign exchange, lowers transport costs, and strengthens macroeconomic stability,” he said.
He also endorsed Portland Gas Limited’s proposed mini-LNG and LCNG facility in Gwagwalada as a cornerstone of Nigeria’s gas-driven industrial growth and energy security strategy.
“The Ajaokuta–Gwagwalada segment of the AKK pipeline, expected to deliver first gas by July 2026, will transform energy supply in northern Nigeria, unlocking industrial demand, power generation, auto CNG, and mini-LNG expansion. NNPC will supply piped gas to Portland Gas’ Gwagwalada plant,” he said.
The Gwagwalada mini-LNG and LCNG project is positioned as a strategic initiative to expand domestic gas infrastructure, strengthen industrial competitiveness, and support Nigeria’s long-term energy and economic goals.
“At the heart of our midstream transformation is the 614-kilometre AKK pipeline. The Ajaokuta–Gwagwalada segment is projected to be commissioned, with first gas expected by July 2026,” Ogunleye stated.
He noted that the project would link northern industrial hubs to gas supply, enabling competitive power generation, manufacturing expansion, auto-CNG growth, and job creation.
“The countdown to July 2026 has begun. When the first valve opens, it will not simply release gas; it will release productivity, industrial growth, and economic renewal,” he added.
Ogunleye described Gwagwalada as a strategic logistics hub with strong demand from transport operators, manufacturers, agro-processing clusters, and real estate developers.
“The mini-LNG and L-CNG station will fuel vehicles, power industry, reduce diesel dependence, and strengthen energy resilience. Positioned at the AKK Abuja take-off node, the project aligns strongly with market demand and investor appetite,” he said.
NNPC will supply piped natural gas to the facility, which will serve as a “mother station” for mobile refuelling units and retail outlets.
“This is infrastructure meeting real demand. With scalable deployment and reliable supply, early investors are positioned to shape the next decade of clean energy growth,” Ogunleye said.
He also highlighted the environmental benefits, noting that replacing diesel and petrol with LNG and CNG could reduce transport emissions by about 25 per cent while improving air quality.
The Chairman of the Presidential Compressed Natural Gas Initiative, Ismaeel Ahmed, represented by Tosin Coker, said Nigeria was building a competitive gas economy to reduce transport costs and stimulate local manufacturing.
“Nigeria is not merely transitioning energy systems; we are building a competitive gas economy. That shift requires infrastructure, capital, partnerships, and execution,” he said.
Ahmed highlighted the role of mini-LNG and L-CNG infrastructure in addressing availability, accessibility, and scalability challenges.
“These systems allow gas to move beyond pipeline limitations, enable fleet refuelling, support industrial clusters, and unlock regional growth,” he said.
He added that the government is strengthening regulatory coordination, safety frameworks, and certification processes to de-risk investments.
“The message to investors is simple: Nigeria’s gas market is not speculative; it is strategic. Every station built generates employment. Every conversion centre develops new technical expertise. Every fleet converted improves cost efficiency and environmental performance,” Ahmed said.
The Chief Commercial Officer of Portland Gas, Michelle Ejiofor, said the project would bridge the gap between stranded gas and end users while lowering energy costs.
“This is more than a project; it is a bridge between high energy costs and affordable alternatives, between environmental concerns and cleaner energy solutions,” she said.
She added that the workshop aimed to unlock partnerships among government, investors, regulators, and technology providers to accelerate decentralised gas infrastructure development.
Nigeria has intensified efforts to expand gas utilisation as part of its energy transition strategy, following the removal of petrol subsidies and rising fuel costs. The Federal Government has also promoted CNG adoption through incentives and fleet conversion programs to reduce dependence on imported fuels.
Large-scale investments in pipelines, mini-LNG facilities, and virtual gas distribution networks are needed to reshape Nigeria’s energy landscape, improve industrial competitiveness, and strengthen macroeconomic stability.