By Dayo Dare
Nigeria is blessed with an abundance of minerals and natural resources. One of the most popular which the nation is well known for is its oil reserves which stand at about 37 billion barrels, ranking second largest in the world.
But more than oil, Nigeria also holds over 209 Trillion Cubit Feet of gas reserves. Unfortunately these reserves have largely gone untapped for decades.
With proper investment, equipment and regulatory support, the country’s gas sector has much to offer including bridging the country’s energy gaps, and removing it from sole reliance on oil.
For years, the country has focused mostly on its oil production and has made this one of its most exported goods, while neglecting the exploitation of other minerals and resources. This is only fair and understandable. The black gold contributes over 90% of the country’s Foreign Exchange earnings, and about two-thirds of the Federal Government’s revenues. And indeed oil sales have been lucrative. But in recent years both sales and production have suffered challenges, whether due to OPEC quotas, security challenges around drilling sites, global economic instability among other factors, leaving oil production and sales at an all-time decline. Invariably this has led to rising costs of petroleum products, especially with the removal of the Federal Government’s subsidies on petrol.
It is this shift that has pushed the government to focus its attention on exploiting gas as a more sustainable alternative. This resource has gone unexplored for years yet it is a cleaner and cheaper alternative. Gas can be used for mostly the same energy needs that petroleum serves, including transportation and power generation.
In 2021, Nigeria exported approximately 0.8 trillion cubits of feet of natural gas as LNG to Europe, Asia and France. Although the country has exported gas in the past, the exportation of this resource is sometimes difficult due to the lack of pipelines to transport them. With the latest introduction of the Presidential Gas for Growth Initiative, transportation and development is hoped to be a thing of the past. The Presidential Gas for Growth Initiative (PGGI), formed in 2025 by the Tinubu administration aims to advance Nigeria’s gas sector and address challenges like infrastructure, regulatory bottlenecks, and insufficient investments.
Take for instance, the Presidential Compressed Natural Gas (CNG) Initiative, an outcome of implementing the strategies of the PGGI. This initiative is promoting natural gas as an alternative fuel for transportation, thus reducing Nigeria’s dependence on fuel. It is making CNG more accessible and affordable for consumers through conversion centres across the country.
In December 2023, the Ministry of Finance, led by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun released a list of Fiscal Incentives to bolster the Presidential Gas Growth Initiative with the aim of promoting Nigeria’s gas industry. According to the circular, the Federal Government has placed a zero percent import duty rate on all equipment related to Compressed Natural Gas and Liquefied Petroleum Gas; with this waiver, the cost of importing essential equipment for the processing of CNG and LPG are reduced, thus encouraging investment in gas infrastructure.
The Finance Ministry, tasked with the application of these fiscal incentives is collaborating with other government bodies such as the Nigeria Customs Service to implement this policy and create a favorable fiscal environment to attract investments into the gas sector. This includes creating a business-friendly regulatory system that will foster the participation of the private sector in gas infrastructure projects.
If Nigeria can successfully harness its gas reserves it will not only provide an alternative source of fuel but also give the nation another resource to export. The development of gas pipelines and infrastructure will also create jobs and attract foreign inventions. Funds made from exportation not only increases the nation’s GDP but also provides enough revenue to help maintain other sectors like health, education among others.
Nigeria has what it takes to pull off this new venture but the government will have to be willing to tackle challenges head-on, especially corruption. In order for this initiative to work, there must be transparency and funds allocated must be used for the development of the sector rather than being squandered or misspent.
With its vast gas reserves, Nigeria can rightfully be on the path to prosperity. Unprecedented wealth, and energy sufficiency for generations to come lie here. Under the leadership of President Bola Tinubu and the strategic direction of the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, Nigeria is taking bold steps to realize this vision. With forward-thinking policies, fiscal incentives, and a commitment to gas-led economic transformation, the nation is on course to maximize its energy potential, boost revenue, and solidify its position as a global energy powerhouse.
