The Nigerian National Petroleum Company Limited (NNPC Ltd) has intensified efforts to attract fresh investment into Nigeria’s gas sector as the Ajaokuta–Gwagwalada segment of the Ajaokuta–Kaduna–Kano Gas Pipeline (AKK Pipeline) moves toward its projected first gas delivery by July 2026.
The 614-kilometre AKK Gas Pipeline is one of Nigeria’s flagship midstream infrastructure projects, designed to expand domestic gas supply, boost power generation, and accelerate industrial development across northern Nigeria.
According to NNPC officials, the Ajaokuta–Gwagwalada section will serve as a strategic enabler of economic activity along the corridor, connecting industrial hubs to reliable gas supply.
The Executive Vice President, Gas, Power and New Energy at NNPC, Olalekan Ogunleye, disclosed the renewed investment push during a stakeholders’ workshop on mini-LNG and L-CNG infrastructure in Abuja. He was represented by Kachala Suleman at the event, convened by Portland Gas Limited.
The workshop highlighted investment opportunities in a proposed mini-LNG and L-CNG station in Gwagwalada—an initiative stakeholders believe will accelerate Nigeria’s gas commercialisation drive and transport sector reform.
In a presentation titled “Powering the Future: Leveraging CNG Infrastructure to Drive Nigeria’s Energy Transition and Sustainable Growth,” Ogunleye said Nigeria has formally transitioned from an oil-focused economy to a gas-first nation.
“For decades, Nigeria was described as an oil nation that happened to have some gas. That narrative has now been permanently retired,” he said.
Under the NNPC Gas Master Plan and the Federal Government’s Decade of Gas initiative, the country is repositioning natural gas as the backbone of its energy security and industrialisation strategy.
NNPC targets increasing national gas production to 10 billion cubic feet per day (bcf/d) by 2027 and 12 bcf/d by 2030. Nigeria currently holds more than 210 trillion cubic feet of proven gas reserves—among the largest in Africa—while domestic supply has surpassed 2 bcf/d.
“These are economic necessities for a country of over 230 million people seeking industrial revival, energy security, and global competitiveness,” Ogunleye stated.
The compressed natural gas (CNG) segment has already attracted over $200 million in private investment commitments, with more than 300 conversion centres operational nationwide.
NNPC aims to achieve one million CNG vehicle conversions by 2027, a move expected to reduce fuel imports, conserve foreign exchange, lower transport costs, and improve macroeconomic stability.
Ogunleye confirmed that NNPC will supply piped natural gas from the AKK pipeline network to Portland Gas’ proposed Gwagwalada facility once operational.
“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,” he said.
The Chairman of the Presidential Compressed Natural Gas Initiative, Ismaeel Ahmed, represented by Tosin Coker, said Nigeria is building a competitive gas economy focused on lowering transport costs and strengthening 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 explained that mini-LNG and L-CNG systems will enable virtual gas distribution, overcoming pipeline limitations and supporting fleet refuelling, industrial clusters, and regional economic growth.
He added that the government is enhancing regulatory coordination, safety frameworks, and certification processes to de-risk private sector investment in gas infrastructure.
Stakeholders say replacing diesel and petrol with LNG and CNG could reduce transport emissions by approximately 25 percent while improving urban air quality.
The Chief Commercial Officer of Portland Gas, Michelle Ejiofor, described the Gwagwalada project as a bridge between stranded gas resources and end users.
“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.
With the July 2026 first-gas deadline approaching, industry stakeholders agree that sustained investment in pipelines, mini-LNG plants, CNG stations, and virtual gas networks will be critical to reshaping Nigeria’s energy landscape.
The AKK Gas Pipeline is expected to support competitive power generation, manufacturing expansion, auto-CNG growth, job creation, and long-term macroeconomic stability.
As the countdown continues, NNPC’s renewed investor outreach signals confidence that Nigeria’s gas sector could become a central pillar of economic transformation in the post-subsidy era.
