The Federal Government has introduced new initiatives aimed at bolstering Nigeria’s gas-to-power sector, highlighting natural gas as the backbone of electricity supply and a key driver of the nation’s industrialisation.
Officials noted that gas currently accounts for over 70 per cent of Nigeria’s on-grid electricity generation, but acknowledged that challenges in supply, infrastructure, and commercial frameworks continue to limit reliable power delivery to homes and businesses.
Speaking at the National Gas Day session of the 9th Nigeria International Energy Summit 2026 in Abuja on Thursday, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said President Bola Tinubu’s administration is intentionally strengthening the entire gas-to-power value chain to boost economic growth, industrial productivity, and energy security.
Ekpo also revealed plans to expand the government’s free liquefied petroleum gas cylinder distribution programme to all six geopolitical zones, aiming to promote clean cooking, curb deforestation, and reduce household dependence on firewood and charcoal.
“Today, gas fuels over 70 per cent of Nigeria’s on-grid electricity generation. But to power our industrialisation ambitions, we are strengthening the entire gas-to-power chain,” the minister said. “Our focus is not just about producing gas; it is about ensuring that gas moves seamlessly from the wellhead to power plants in a commercially viable, predictable and sustainable manner.”
He explained that the Federal Government’s strategy focuses on securing long-term, bankable gas supply agreements for power plants, emphasizing that past inconsistencies in gas delivery and payment risks have historically deterred investment in both upstream gas projects and electricity generation.
“We are working to put in place long-term, commercially viable gas supply agreements that give confidence to producers and guarantee reliable fuel to power plants. Without certainty of supply and payment, you cannot unlock the scale of investment required to stabilise electricity generation,” he said.
The minister added that the government continues to implement the National Economic Council–approved power sector debt resolution framework, designed to settle outstanding debts owed to gas suppliers and power generation companies.
“The debt overhang in the power sector has been a major bottleneck. We are implementing the NEC-approved framework to resolve these liabilities because gas suppliers must be paid if power plants are to continue operating,” he said.
