The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and key policymakers highlighted their discontent with the nation’s inadequate energy performance, particularly in electricity generation and gas utilization, during discussions on Thursday.
At the ‘National Gas Day’ segment of the 9th Nigeria International Energy Summit (NIES) held in Abuja, Saidu Mohammed, the Authority Chief Executive of NMDPRA, articulated his frustrations over the persistent stagnation in Nigeria's electricity output.
He noted that Nigeria continues to produce approximately 5,000 megawatts of electricity—a figure that has seen little progress over the past two decades. Mohammed reflected on a time when the country rejoiced over reaching 4,500MW some 25 years ago, yet today remains largely stagnant at around 5,000 megawatts despite an installed capacity exceeding 13,000MW.
He explained that the issue is not a lack of gas resources or power plants, but rather inadequate commercial frameworks and inefficiencies throughout the gas-to-power supply chain. Nigeria is capable of producing around 8 billion cubic feet of gas each day and exports sizeable amounts, yet operates a limited and underdeveloped domestic gas market.
Mohammed challenged the often-cited reasons from power plants regarding gas shortages affecting power generation, asserting that only a few plants can substantiate claims of insufficient gas supply with reliable agreements. He emphasized that gas must be sold before production commences, warning that without solid buyers and enforceable contracts, there is little motivation for producers to enhance domestic gas offerings.
He characterized gas not merely as an energy resource but as a crucial economic driver that supports sustainable power generation, industrial advancements, and economic progress. He warned that Nigeria's path to industrialization and economic diversification remains impeded without stable gas supplies, despite the country’s abundant resources.
“Gas-to-power discussions have persisted for years. Many of us have grown up in the industry. However, despite our efforts, we're still at the same impasse,” he remarked.
Recalling how, about two decades ago, the Nigerian Gas Company celebrated achieving 4,500 megawatts, he lamented that, 25 years later, the country is still stagnating around 5,000 megawatts.
“It’s unfortunate that we are still at this level. There is ample generating capacity of up to 13,000 megawatts. The issue primarily lies in the limitations on distribution capacity, but I persistently question power plants about the actual amount of gas contracted that has yet to be delivered.”
He noted, “When we pose these questions, we seldom receive clear responses. Currently, there are no more than one or two power plants equipped with bankable commercial gas sale agreements. Until we shift to a commercial approach, the necessary gas supply cannot be mobilized. Gas should be considered a commodity sold prior to drilling. Without buyers for gas, the search for it is futile,” he elaborated.
Mohammed highlighted that the Petroleum Industry Act (PIA) has initiated vital reforms, including obligations for domestic gas supply, clearer pricing regulations, and distinct regulatory roles. He confirmed that the authority collaborates with other regulatory bodies to enforce these reforms while enhancing transparency in gas pricing and transportation tariffs.
He emphasized the need for infrastructure development as essential to stimulating gas demand. Mohammed cited the Escravos-Lagos Pipeline as a successful model demonstrating how gas infrastructure can create markets, with industrial hubs developed along its route. He asserted that similar opportunities could develop across various industrial zones with expanded pipelines and virtual gas networks.
He also mentioned that the regulator is transitioning from a control-oriented framework to a performance-driven model, prioritizing network reliability, predictable supply, and timely approvals for infrastructure initiatives. Domestic gas supply remains critical, despite Nigeria facing financing difficulties related to fossil fuel projects amid a global energy transition.
Echoing these sentiments, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, reiterated that Nigeria’s substantial gas reserves would be ineffectual if they do not translate into practical benefits for citizens.
At the summit, Ekpo stated that Nigeria's proven gas reserves, approximately 210 trillion cubic feet—Africa's largest—would be rendered “useless” without delivery to homes, hospitals, schools, and industries. He argued that the real indicators of progress are not simply reserve quantities, but outcomes like electricity supplied, jobs created, energy access improved, and economic opportunities generated.
He classified natural gas as integral to Nigeria’s energy transition and industrial goals, describing it as a transitional fuel that bridges the gap between current practices and future low-carbon objectives. Under the federal government’s Renewed Hope Agenda, gas is positioned as a foundational element of the nation's energy infrastructure, bolstered by regulatory improvements and investment incentives.
Ekpo outlined various policy achievements, including the localization of LPG production to stabilize prices and enhance household access, resolving longstanding gas-to-power debts that have hindered investor confidence, and implementing a nationwide distribution of free LPG cylinders for cleaner cooking. He also noted Nigeria’s bolstered international status following the appointment of a Nigerian as the Secretary-General of the Gas Exporting Countries Forum.
He reaffirmed that gas fuels over 70 percent of Nigeria’s grid-connected electricity generation, yet cautioned that aspirations for industrial growth will necessitate stronger linkages between gas supply and power, long-term contracts, enhanced infrastructure, and improved coordination within the energy and power sectors. Beyond electricity, he stated that gas is crucial for agriculture, manufacturing, petrochemicals, and transportation, and could enable Nigeria to shift from exporting raw gas molecules to value-added products.
Ekpo concluded by reiterating the government’s determination to cultivate a commercially viable and investor-friendly gas market under the Petroleum Industry Act, asserting that Nigeria should be perceived not just as a land of potential, but as a stage for reform and sustainable progress.
“Nigeria is at a critical juncture. With proven natural gas reserves of 210.54 Tcf—the largest in Africa and the ninth globally—our nation is positioned for significant transformation. However, the true worth of our gas resources is measured by their influence on citizens’ lives and prosperity,” he emphasized.
His closing remarks underscored that real Fortschritt is reflected in tangible outcomes: electricity provided to individuals and sectors, job creation throughout the gas value chain, income earned from exports and investments, and opportunities fostered through access to reliable energy.
In addition, discussions at the summit included the finance and infrastructure aspects of maritime, with the Nigerian Maritime Administration and Safety Agency (NIMASA) summarizing advancements made regarding the Cabotage Vessel Financing Fund.
Speaking on behalf of Dr. Dayo Mobereola, the Director-General of NIMASA, Nneka Obianyor, a Director at the agency, noted that the fund, which is financed through a 2 percent surcharge on cabotage contracts, has existed for years but faced challenges with disbursements.
She explained that the present administration has restructured this framework to enhance transparency and accessibility, involving 12 primary lending institutions, launching a dedicated application portal, and offering single- digit interest loans with terms lasting up to eight years.
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