The federal government is seeking increased private and development-finance investment through “intentional partnerships” to close funding gaps in Nigeria’s gas infrastructure.
At the 4th edition of the Gas Investment Forum on Tuesday, Ekperikpe Ekpo, minister of state for Petroleum Resources (Gas), who was represented by Shettima Gaji, deputy director of Gas Pricing and Open Access, said the government alone cannot finance the infrastructure and projects required to develop the gas industry.
According to him, attracting domestic and international investors, financial institutions, development finance institutions and technology providers is important in delivering bankable gas projects.
“We need to bring together domestic and international investors, financial institutions, development finance institutions and technology providers to deliver bankable projects across the gas value chain,” Ekpo said.
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He noted that strategic partnerships between the public and private sectors could help bridge financing gaps, strengthen project preparation and mobilise the capital needed to move gas projects from development to execution.
“Public-private partnerships will be essential to bridging financing gaps, improving project preparation and moving projects from concept to execution,” he said.
Nigeria’s gas market is affected by limited availability of processing and distribution infrastructure. These gaps raise project costs, restrict access to gas and make it more difficult for investors to secure reliable supply and predictable returns.
However, Ekpo identified the Escravos-Lagos Pipeline System (ELPS) and the OB3 gas pipeline as infrastructure capable of strengthening domestic gas transmission and supporting power and industrial development.
“These projects are essential to unlocking opportunities across Nigeria’s northern and southern regions,” he said.
He disclosed that the government is also advancing regional gas infrastructure through projects including the West African Gas Pipeline, Trans-Saharan Gas Pipeline and Trans-Atlantic Gas Pipeline.
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According to him, these projects could deepen energy cooperation, facilitate cross-border gas trade and expand Africa’s access to reliable energy supplies.
“These regional projects will deepen energy cooperation, facilitate cross-border gas trade and expand access to reliable energy across Africa,” he said.
The minister noted that the federal government is working to create an investment environment capable of attracting the long-term capital required by the gas sector.
Additionally, he said gas infrastructure requires significant upfront investment and long development periods before returns could be realised, making private capital essential to the sector’s expansion.
“Gas infrastructure requires substantial upfront investment and long development timelines. This makes private capital indispensable to the expansion of the sector.”
Ekpo explained that the federal government remains committed to working with stakeholders in unlocking investment opportunities and building a gas industry capable of supporting Nigeria’s energy security and broader economic development.
“We remain committed to working with all stakeholders to unlock investment opportunities and build a gas industry that supports Nigeria’s energy security and broader economic development,” he said.
