Nigeria faces looming gas supply crisis, requires $20 billion yearly investment
Nigeria’s energy sector is at a critical crossroads, with experts warning of a looming gas supply crisis unless urgent investments are made. The country requires approximately $20 billion yearly to bridge its gas infrastructure deficit, according to the Nigeria Extractive Industries Transparency Initiative (NEITI).
Speaking at the NAEC Energy Conference 2024, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) CEO, Gbenga Komolafe, emphasized the need for complementary hydrocarbon developments with renewable energy sources. Komolafe warned of an impending gas supply crisis, with a potential shortfall of 3.1 billion cubic feet per day by 2030.
Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) CEO, Farouq Ahmed, stressed the importance of ending gas flaring, citing the wasted resource could generate enough electricity to meet Nigeria’s energy needs. Ahmed highlighted the Decade of Gas initiative’s objectives: ending gas flaring by 2030, adding 5,000 MW to the national grid, and reducing reliance on imported fuels.
Conference Chairman and Rainoil Limited Group Managing Director, Gabriel Ogbechie, noted that Nigeria’s decisions regarding gas in the energy landscape will shape its economic and environmental future. Ogbechie emphasized the need for investments in gas infrastructure, tackling pipeline vandalism, and strengthening policy frameworks to support CNG and LPG initiatives.
To address the challenges, Nigeria needs to prioritize investments in gas infrastructure, renewable energy, and sustainable finance. The Petroleum Industry Act provides a pathway for financing Nigeria’s gas infrastructure deficit. With the recent removal of the petrol subsidy, transitioning to gas alternatives offers clean and affordable energy solutions.
Experts estimate that Nigeria’s energy demand landscape will change exponentially in the next decade, driven by growth in domestic demand. The country aims to increase power generation through gas-fired plants, but this requires significant investment in gas infrastructure.
