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For decades, Nigeria flared natural gas while importing refined products. The country sat on Africa’s largest gas reserves—more than 200 trillion cubic feet—yet struggled to convert that endowment into industrialisation, export earnings, or domestic economic development. Gas was discussed as a resource but treated as an afterthought.
President Bola Ahmed Tinubu has changed that calculus fundamentally. Under his administration, gas has been elevated from a by-product of oil production to the centrepiece of Nigeria’s energy and economic strategy. With the right fiscal incentives and regulatory clarity in place, investment has accelerated across non-associated gas, LNG, petrochemicals, and emerging clean energy solutions.
“Gas is now firmly positioned—not only as a transition fuel—but as a foundation for industrialisation, export growth, and domestic value creation,” said Olu Verheijen, Special Adviser to the President on Energy.
Fiscal incentives that changed the calculus
The administration’s approach to gas has been characterised by targeted fiscal interventions designed to make gas projects competitive with other investment destinations globally. The Non-Associated Gas incentives created a fiscal framework for projects that do not rely on oil production for their economics. Third-party gas pricing frameworks for exports ensured that Nigerian gas could compete in regional and global markets without artificial constraints.
The results have been dramatic. The Iseni Gas project ($100 million), the Ubeta project ($550 million), and the HI Non-Associated Gas project ($2 billion) have all reached Final Investment Decisions under the new fiscal framework. These are not small or marginal projects. They represent the largest wave of gas investment Nigeria has seen in a generation.
“The administration elevated gas as a cornerstone of Nigeria’s energy and economic strategy,” Verheijen explained. “With the right fiscal incentives and regulatory clarity in place, investment has accelerated across non-associated gas, LNG, petrochemicals, and emerging clean energy solutions.”
From flare gas to feedstock
Beyond the upstream projects, the administration has focused on converting gas into industrial feedstock for domestic manufacturing and global export markets. Gas that was once flared is now being captured, processed, and delivered to industries that depend on reliable energy to operate.
The gas-to-power value chain—long the weakest link in Nigeria’s industrial development—has been a particular focus. By improving the bankability of gas-to-power through power sector reforms, the administration has made it possible for gas suppliers to receive payment for the fuel they deliver. And with payment comes the ability to invest in production, processing, and transportation infrastructure.
“Power industrialisation by improving the bankability of the gas-to-power value chain through power sector reforms,” Verheijen said, articulating a core objective of the administration’s gas strategy. “Aggregate demand in industrial clusters and prioritise export-oriented projects to improve scale and bankability.”
LNG and the export market
Nigeria LNG has long been a success story, but the administration has moved to expand that success into new areas. Third-party access arrangements have made it possible for new gas producers to reach export markets without building their own liquefaction infrastructure. And the fiscal clarity provided by the administration’s directives has made long-term LNG offtake agreements more bankable.
The domestic gas market has also grown substantially. Gas utilisation for export increased from 2.33 billion standard cubic feet per day in 2023 to 3.25 billion standard cubic feet per day in 2026. Domestic gas utilisation increased from 1.78 billion standard cubic feet per day to 1.9 billion standard cubic feet per day over the same period.
These numbers represent real economic activity: jobs in gas processing, employment in pipeline construction, industrial production powered by reliable supply, and export earnings that strengthen Nigeria’s external position.
Clean cooking and the transition
The administration has also moved to address one of the most pressing health and environmental challenges facing Nigeria: reliance on biomass for cooking. By incentivising investment in clean cooking distribution infrastructure, the government is working to replace firewood and charcoal with cleaner alternatives that improve health outcomes, particularly for women and children.
“Catalyse clean mass transit and mobility through targeted fiscal and policy incentives,” Verheijen noted as a pillar of the administration’s transition strategy. “Incentivise investment in clean cooking distribution infrastructure to replace biomass and improve health outcomes. Diversify the on-grid electricity mix through gas, hydro, solar, storage and other scalable energy sources.”
The gas strategy is not an oil-and-gas strategy in the traditional sense. It is an industrialisation strategy that uses Nigeria’s natural resource endowment to power manufacturing, create jobs, and diversify the economy away from oil dependence. And it is working.
