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Nigeria’s state-owned energy company, the Nigerian National Petroleum Company Limited (NNPC Ltd), is stepping up efforts to attract private capital into the gas value chain ahead of the anticipated first gas from the Ajaokuta–Gwagwalada section of the AKK pipeline, scheduled for July 2026.
The 614-kilometre Ajaokuta–Kaduna–Kano (AKK) pipeline is a flagship national infrastructure project aimed at expanding domestic gas supply, strengthening power generation and stimulating industrial activity across northern Nigeria. Officials say its completion will unlock large-scale economic opportunities along the corridor.
At a stakeholders’ forum in Abuja focused on mini-LNG and liquefied-to-compressed natural gas (L-CNG) infrastructure, NNPC’s Executive Vice President for Gas, Power and New Energy, Olalekan Ogunleye, said Nigeria’s energy strategy has firmly shifted toward gas as the backbone of growth. Represented by Kachala Suleman, he stressed that the country is no longer defined primarily by crude oil but by its vast gas potential.
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According to him, NNPC plans to raise daily gas production to 10 billion cubic feet by 2027 and further to 12 billion cubic feet by 2030 to meet rising domestic demand and industrial needs. Nigeria holds more than 210 trillion cubic feet of proven gas reserves, positioning it among Africa’s largest resource holders.
He noted that investor interest in compressed natural gas (CNG) has accelerated, with over $200 million in private commitments and more than 300 vehicle conversion centres already operational nationwide. The target is one million CNG vehicle conversions by 2027 to cut fuel imports, ease foreign exchange pressure and lower transportation costs.
A proposed mini-LNG and L-CNG facility in Gwagwalada is expected to benefit directly from piped supply from the AKK network. The plant will function as a central distribution hub serving transport fleets, manufacturers and other large energy users.
Government officials say the project aligns with Nigeria’s broader Decade of Gas agenda, aimed at reducing diesel dependence, curbing emissions and deepening industrial competitiveness as the country advances its energy transition.
