Uche Cecil Izuora
NIPCO Gas Limited and the NNPC Gas Marketing Limited are expanding gas infrastructure projects across the South Western part of Nigeria, aiming to boost industrial and commercial economic growth of the region.
Both parties have consolidated gas supply agreements that will further expand adoption of gas as alternative energy sources for commercial activities.
NIPCO Gas, the major driver of the energy supply chain has outlined an expansion strategy spanning pipeline infrastructure, city gas distribution networks and nationwide Compressed Natural Gas (CNG) rollout, positioning itself at the forefront of Nigeria’s domestic gas drive under the reform framework of the Petroleum Industry Act (PIA).
The Managing Director of the company, Mr. Nagendra Verma, while speaking in the ongoing projects across the South West and other parts of the country, described natural gas as central to energy security, industrial competitiveness and macroeconomic stability in the post-subsidy era.
He said Nigeria’s energy landscape is undergoing structural transformation driven by regulatory clarity introduced by the PIA and renewed government emphasis on domestic gas utilisation.
Verma, the improved governance framework and issuance of gas distribution licences have strengthened investor confidence across the oil and gas value chain, encouraging long-term infrastructure commitments.
With fuel subsidy removal and fiscal restructuring reshaping the downstream market, gas is increasingly being positioned as a stabilising alternative to imported fuels, reducing exposure to global price volatility while supporting manufacturing and commercial activity.
According to him, NIPCO Gas is constructing an 18-inch, 80-kilometre natural gas pipeline from Sagamu to Ibadan.
The project, scheduled for completion between June and July 2026, is expected to significantly boost gas availability to industries in Ogun and Oyo states as well as adjoining areas.
The MD noted that the infrastructure will reduce energy costs for manufacturers currently dependent on alternative fuels such as diesel and low-pour fuel oil, improve production efficiency and strengthen the competitiveness of Southwest industrial clusters.
Given the strategic importance of the pipeline to regional industrialisation and national energy security, NIPCO Gas called for sustained cooperation from federal and state authorities to ensure seamless delivery.
Beyond Ibadan, he said the company is extending gas distribution infrastructure from Sagamu to Abeokuta, also in Ogun State, as part of efforts to deepen gas penetration in the Southwest.
According to him, the Abeokuta expansion is expected to attract fresh manufacturing investments, enhance reliability of energy supply to existing businesses and strengthen internally generated revenue within the state. The project, he said, has received backing from the Ogun State Government, reflecting alignment between public policy and private sector infrastructure deploymentHe added NIPCO Gas has developed gas distribution infrastructure within the Lekki Free Trade Zone, reinforcing energy access for industries operating in the fast-growing economic corridor.
“The Lekki axis has emerged as a major hub for export-oriented and heavy industrial investments, and reliable gas supply is considered critical to sustaining operations, lowering production costs and maintaining competitiveness.
By strengthening energy reliability in the zone, the company said it is contributing to Lagos State’s position as a leading industrial and commercial centre,”.
In alignment with the Federal Government’s clean energy and post-subsidy transport reform agenda, Verma said NIPCO Gas, in joint venture with NGML, is constructing 20 additional CNG stations across Nigeria.
“In addition, CNG mother stations located in Lekki and Ore are at advanced stages of completion. These facilities will function as primary compression and dispatch hubs, supplying daughter stations and industrial customers through a mother–daughter network model, particularly in areas not directly connected to pipeline infrastructure.
The nationwide rollout is strategically targeted at high-traffic urban centres and major transport corridors, improving accessibility and affordability of CNG for fleet operators, mass transit systems, commercial drivers and private vehicle owners,’’.
According to him, all facilities are being developed in compliance with Nigerian regulatory standards and international safety best practices.
Beyond fuel substitution, he stressed that the expansion is expected to stimulate job creation across construction, operations and ancillary mobility services, lower transportation costs, reduce carbon emissions and improve air quality in major cities.
The NIPCO Gas boss said its sustained investments in trunk pipelines, city gas networks and CNG infrastructure are designed to strengthen national energy security, promote domestic gas utilisation and support Nigeria’s broader economic diversification agenda.
The company emphasised that transparency and stakeholder engagement remain central to its operations, noting that collaboration with regulators, sub-national governments and the media will be critical in sustaining momentum within the gas sector.