Nigeria Requires $22bn to Fund Gas Pipeline Projects, NNPCL Says

 

National oil company highlights funding gap as country pushes gas infrastructure to boost energy security and economic growth

The Nigerian National Petroleum Company Limited (NNPCL) has disclosed that Nigeria requires an estimated $22 billion to fund critical gas pipeline infrastructure projects across the country, as part of efforts to unlock the nation’s vast gas reserves and strengthen energy security.


According to the NNPCL, the funding is needed to develop, expand, and complete key gas pipeline networks that will support domestic gas utilisation, industrial growth, power generation, and export capacity. The company said inadequate pipeline infrastructure remains one of the major constraints limiting Nigeria’s ability to fully harness its natural gas potential.


Nigeria holds one of the largest proven gas reserves in Africa, yet large volumes remain untapped due to gaps in transportation infrastructure. NNPCL noted that expanding pipeline capacity is essential to support the Federal Government’s gas-based economic transition, including the “Decade of Gas” initiative aimed at positioning gas as a bridge fuel for national development.


The national oil company explained that the $22 billion requirement covers both ongoing and planned projects designed to connect gas-producing regions with demand centres, industrial hubs, and export terminals. These pipelines are expected to improve supply reliability, reduce gas flaring, and attract private sector investment into the energy value chain.


NNPCL also emphasized the need for public-private partnerships, foreign investment, and innovative financing models to bridge the funding gap, noting that government resources alone may not be sufficient to meet the scale of required investment.


Energy experts say successful execution of the gas pipeline projects could significantly boost electricity generation, support manufacturing, create jobs, and increase government revenue, while positioning Nigeria as a major gas supplier in the global energy market.


As global demand for cleaner energy sources grows, NNPCL stressed that timely investment in gas infrastructure will be critical for Nigeria to remain competitive, drive economic diversification, and achieve long-term energy sustainability.


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