The Nigerian National Petroleum Company Limited (NNPC) and industry stakeholders are ramping up efforts to attract investors ahead of the anticipated first gas flow from the Ajaokuta–Gwagwalada segment of the Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline by July 2026.
The pipeline, a key part of the AKK network, is expected to enhance domestic gas supply, support power generation, and drive industrial growth across northern Nigeria. Officials are confident its completion will unlock significant economic opportunities along the corridor.
NNPC has called on investors to explore emerging opportunities in compressed natural gas (CNG) infrastructure, highlighting Nigeria’s transition from an oil-focused economy to a gas-first nation. Olalekan Ogunleye, Executive Vice President, Gas, Power and New Energy, emphasized the strategic shift during a stakeholders’ workshop on mini-LNG and L-CNG infrastructure in Abuja, represented by Kachala Suleman.
He noted that the country’s long-standing oil dominance has given way to a gas-led transition. “Nigeria has become a gas-first nation, strategically, commercially, and operationally,” Ogunleye said. The NNPC aims to increase national gas production to 10 billion cubic feet per day by 2027 and 12 billion by 2030 to support industrial revival, energy security, and global competitiveness.
Nigeria’s gas sector presents significant investment opportunities, with proven reserves exceeding 210 trillion cubic feet and domestic supply already surpassing 2 billion cubic feet per day. Ogunleye highlighted the growth of the CNG segment, with over $200 million in private investments and more than 300 vehicle conversion centres nationwide. The target is one million CNG vehicle conversions by 2027, which would reduce fuel imports, cut transport costs, and strengthen macroeconomic stability.
The workshop, convened by Portland Gas Limited, focused on a proposed Mini-LNG and L-CNG facility in Gwagwalada, Abuja, which will serve as a “mother station” for mobile refuelling units and retail outlets. The Ajaokuta–Gwagwalada segment of the AKK pipeline will supply piped gas to the facility, enabling power generation, industrial expansion, and auto-CNG growth across northern industrial hubs.
Ogunleye described Gwagwalada as a strategic logistics hub with strong demand from transport operators, manufacturers, agro-processing clusters, and real estate developers. He emphasized that the project will reduce diesel dependence, support energy resilience, and create jobs while strengthening Nigeria’s gas-driven industrial growth strategy.
The Chairman of the Presidential Compressed Natural Gas Initiative, Ismaeel Ahmed, represented by Tosin Coker, highlighted that Nigeria is building a competitive gas economy. He noted that mini-LNG and L-CNG infrastructure would overcome pipeline limitations, expand industrial clusters, and unlock regional growth while improving cost efficiency and environmental performance.
Michelle Ejiofor, Chief Commercial Officer of Portland Gas, added that the project bridges the gap between stranded gas and end-users, lowering energy costs and supporting cleaner energy solutions. The workshop also aimed to foster partnerships among government, investors, regulators, and technology providers to accelerate decentralised gas infrastructure development.
Nigeria’s push to expand gas utilisation aligns with its energy transition strategy, following the removal of petrol subsidies and rising fuel costs. Large-scale investments in pipelines, mini-LNG facilities, and virtual gas distribution networks are expected to strengthen industrial competitiveness, energy security, and macroeconomic stability.
