The Managing Director of NIPCO Gas Ltd., Nagendra Verma, has announced that the 18-inch, 80-kilometre Sagamu–Ibadan natural gas pipeline has achieved 80% completion.
Mr Verma shared this update during an engagement with energy reporters in Lagos on Friday.
He indicated that the project is expected to be delivered between June and July, underscoring the company's dedication to finishing the vital infrastructure within the planned timeframe.
The pipeline, developed in collaboration with NNPC Gas Marketing Ltd. (NGML), is anticipated to substantially increase the availability of gas for industrial and commercial users in Ogun and Oyo states, along with neighbouring areas in the Southwest region.
Verma highlighted the Sagamu–Ibadan pipeline as a key development in Nigeria's efforts to expand gas infrastructure, noting its potential to enhance manufacturing output and bolster energy security.
He stated, “This critical infrastructure will improve manufacturing competitiveness, lower production costs for industries dependent on alternative fuels, and stimulate regional economic growth.”
Given the project's importance for industrial development in the Southwest and national energy security, Verma requested continued support from federal and state authorities to ensure its smooth completion.
He elaborated that many manufacturers in the region currently depend on more expensive and price-volatile fuels like diesel and Low Pour Fuel Oil (LPFO).
Access to pipeline gas, he explained, will offer a more dependable, cost- effective, and environmentally friendly alternative, empowering businesses to optimise their operations and expand their capacity.
In addition to the Ibadan route, NIPCO Gas, in partnership with NGML, is also constructing supplementary gas distribution facilities from Sagamu to Abeokuta. This aims to increase gas accessibility throughout Ogun State.
The Sagamu–Abeokuta project, he added, is designed to accelerate industrial expansion by ensuring a reliable gas supply for current manufacturers and attracting new investments into the state.
This initiative is projected to improve energy reliability, enhance business operational efficiency, and contribute to internally generated revenue through increased economic activities.
“The project continues to enjoy strong collaboration and support from the Ogun State Government, reflecting a shared commitment to energy-driven economic development and sustainable industrial expansion,” Mr Verma commented.
The Sagamu–Ibadan pipeline is seen as a crucial piece of infrastructure that will further solidify Ogun and Oyo states as leading industrial centres in the Southwest.
Enhanced access to natural gas is expected to foster growth across key sectors such as cement, food and beverages, steel, pharmaceuticals, and agro- processing.
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