By Author Iwedim
For decades, Nigeria’s economic narrative has been dominated by crude oil, even as vast gas reserves lay largely untapped beneath the surface. Yet the global energy landscape is shifting, domestic power needs are growing, and the limits of oil dependency are becoming clearer. Against this backdrop, the renewed focus on gas commercialization by NNPC Limited under its Group Chief Executive Officer, Bayo Ojulari, deserves close public scrutiny—not as applause, but as a pivotal policy choice with far-reaching implications.
Nigeria holds about 206 trillion cubic feet of proven gas reserves, far exceeding its oil endowment. The question has never been about abundance, but about intent, infrastructure, and execution. Eight months into Ojulari’s tenure, gas has moved from the margins of policy rhetoric to the centre of NNPC’s commercial strategy, signalling a deliberate attempt to steer the economy toward a gas-driven future.
At the core of this strategy is a push to convert long-standing potential into tangible production. For years, gas flaring symbolised both environmental neglect and economic waste. Under the current leadership, renewed investments in processing, transportation, and distribution aim to reduce flaring while monetising what was once burnt off. Projects such as the Obiafu-Obrikom-Oben (OB3) pipeline have been prioritised to unlock stranded gas and strengthen domestic supply. Supporters see this as overdue pragmatism; critics caution that timelines and maintenance culture will ultimately determine whether ambition translates into impact.
A major test of the gas agenda lies in the power sector. Nigeria’s electricity challenges remain a drag on industrial growth, and gas supply reliability has often been the weakest link. By tightening supply arrangements to power plants and deepening engagement with Independent Power Producers, NNPC under Ojulari has sought to stabilise generation. Early improvements in plant utilisation offer cautious optimism, though sustained success will depend on broader sector reforms beyond NNPC’s control.
Beyond electricity, gas is increasingly framed as an industrial catalyst. Fertiliser production, petrochemicals, and other gas-intensive industries are central to the government’s diversification goals. By focusing on pipeline reliability, capacity expansion, and commercially viable pricing structures, NNPC aims to make gas a dependable industrial feedstock. If successful, this could support jobs, reduce imports, and strengthen local value chains—outcomes Nigerians have heard promised before, but rarely delivered at scale.
Transportation is another frontier. The promotion of compressed natural gas (CNG) as an alternative fuel reflects both economic and environmental calculations. With rising fuel costs and emission concerns, CNG offers a cheaper, cleaner option, particularly for commercial fleets. Partnerships with private operators and the gradual rollout of refuelling infrastructure suggest a market-oriented approach, though widespread adoption will hinge on pricing, safety standards, and public confidence.
Regionally, the Nigeria–Morocco Gas Pipeline represents the most ambitious extension of this gas vision. Revived focus on feasibility studies, regulatory alignment, and phased execution points to a cautious but strategic approach. Proponents argue that even the initial phase to Côte d’Ivoire could demonstrate Nigeria’s leadership in regional energy integration. Skeptics, however, note the project’s scale, cost, and long gestation period, warning against overestimating near-term returns.
Environmental considerations also shape the gas conversation. Reduced flaring and expanded gas utilisation align with global climate expectations and environmental, social, and governance (ESG) benchmarks. While gas is not a zero-carbon solution, it is widely seen as a transition fuel—cleaner than oil and coal, yet still commercially valuable. Positioning NNPC within this framework may enhance investor confidence, provided transparency and enforcement remain credible.
Financing, inevitably, is a constraint. Gas infrastructure demands heavy capital outlay, and Ojulari’s emphasis on public-private partnerships reflects a recognition that the state cannot go it alone. Shared risk and private capital can accelerate delivery, but they also require regulatory certainty and disciplined contract management—areas where Nigeria’s track record invites caution.
Ultimately, the gas push is as much about governance as geology. Operational discipline, performance metrics, and commercial clarity are being extended to gas projects, mirroring broader corporate reforms within NNPC. Whether these measures endure beyond leadership cycles will determine if gas truly becomes a pillar of economic stability or another missed opportunity.
Eight months on, Bayo Ojulari’s tenure has set a clearer direction for gas commercialization than Nigeria has seen in years. The strategy balances domestic demand with export ambition, environmental responsibility with revenue needs. The real verdict, however, will not be delivered in policy documents or pipeline ceremonies, but in factories powered, homes electrified, flares extinguished, and revenues transparently accounted for. If gas is to redefine Nigeria’s future, execution—not intent—will make the difference.
