Nigeria Needs Natural Gas: Renewables Are Fine Too but Homegrown Gas Will Solve More Problems Faster

     Africa's biggest oil producer, Nigeria, suffers from chronic problems of unreliable power. It also flares a lot of natural gas, which can and should be captured and used to feed power plants to provide electricity. This was noted many years ago, and I have been talking about it for nearly a decade. They also need investment in the expanded natural gas industry. While renewables can also be good for Nigeria, especially solar, since the country has good sun access, natural gas offers much more for much lower costs.

     Nigeria has recently updated its climate plan to nearly double its natural gas power capacity by 2035. It has long had problems in its Southern Niger Delta region, where oil and other fuels are often stolen, illegal refineries crop up, and accidental explosions have killed many people. The bulk of the natural gas infrastructure will likely be in the northern populated cities, away from the poverty, crime, militant, and terrorist-ridden areas. Climate activists are trashing the move to build more gas power plants, invoking ideas like stranded assets. However, expanding natural gas is by far the most pragmatic energy policy.  

     Nigeria's Sovereign Investment Authority has put aside $500 million to invest in renewables, mainly solar, for the 85 million people in the country who do not have access to electricity. These solar-based mini-grids are a great and necessary investment, but they won’t solve the bigger problems. They work great for providing rural access to power. This fund is known as the Distributed Renewable Energy (DRE) Nigeria Fund. Solar-powered irrigation may be very useful for the country’s farmers. 61% of Sub-Saharan Africa’s population of 1.8 billion is involved in agriculture, and 80% of those are smallholder farms. These farmers have limited access to basic mechanization, and drought is a common issue. Solar-powered irrigation could help improve yields and feed more people. One study noted that a $3 billion investment could yield $5 billion in benefits.

     H.E. Bola Ahmed Adekunle Tinubu, President of Nigeria, made the pragmatic statement that gas should be harnessed as carefully as possible:

“Nigeria will work harder and be productive with our own gas. It is an economic necessity that we should embrace.”

     Nigeria is estimated to have over 210 trillion cubic feet in gas reserves, the biggest in Africa. That is quite a lot of gas that can power the country and its industries, including transport. Gas processing plants owned by Seplat Energy expect to soon have a throughput of 1BCF per day. Pipelines and compressed natural gas stations (CNG) are being built. As of June 2025, there were 22 CNG stations, with 12 more under construction. The 614-kilometer Ajaokuta–Kaduna–Kano pipeline, designed to carry gas deep into northern Nigeria, is being built. The NLNG Train 7 project is expanding the country’s LNG capacity by 35% and setting the stage for growing LNG exports. The nearly 7000 km $25 billion Nigeria–Morocco Gas Pipeline is being built across 13 West African countries. It is among the longest offshore pipelines ever planned. Feasibility and engineering phases are completed, and a final investment decision is expected soon. The pipeline is expected to eventually bring more gas to Europe. Nigeria already exports 32% of its total gas exports to Europe and 50% to Asia.

     As shown below, Nigeria’s gas flaring rates have remained more or less steady over the past decade. The country and the multinationals working in the country should address this issue better, but it will take investment by both. The same could be said for the power transmission sector. The need for upgrades and maintenance will grow as the natural gas and power systems grow. Strategic investment decisions with government and industry collaboration will be needed.

     In addition, some important ancillary industries are popping up in the country to support its oil & gas industry as a whole. Forbes Africa reports:

“Bell Oil & Gas, a wholly Nigerian-owned firm, recently commissioned a facility to fabricate valves and oil country tubular goods, a first for the country. “We were the first and remain the only local company with a composite pipe fabrication facility in the country,” says CEO Dr Kayode Thomas. “Our plant is staffed entirely by Nigerians, a deliberate choice to show the world that Nigerians have the skill and capacity to lead in this industry.” Local content is on the rise, with major projects like the Dangote Refinery set to become the world’s largest single-train refinery capable of processing 650,000 barrels of crude oil per day.”

     Gas is already reducing energy costs, replacing more expensive and more polluting diesel, kerosene, and biomass, especially in rural areas, helping those areas to prosper.

“Nigeria is indeed redefining its future with the tools it has long possessed, moving from aspiration to execution. In the workshops of Lekki, the pipelines of Ogun, and the terminals along the delta, that promise is being forged into progress.”

     As can be seen in the graphs below from the U.S. Energy Information Administration, Nigeria produces much more gas than it consumes, about 600-700 BCF annually. Unfortunately, 200-300 BCF per year of this gas is typically flared so that oil can be produced. Nigeria currently exports 32% of its total gas exports to Europe and 50% to Asia.

     The country is powered mainly by natural gas, with hydropower a distant second. Renewables like solar and wind produce a tiny amount. The country also exports electricity to neighboring countries. The power system in the country, however, has many challenges with big transmission and distribution losses, and blackouts are common. Many people utilize biomass and diesel generators for the necessary backup power.

     The Guidebook on Nigeria’s Energy Transition, published in May 2024, noted other energy transition funding availability. I found the three graphs below to be interesting regarding the economic, environmental, and social impacts of a fossil fuel phase-out compared with the same impacts of a renewables phase-in. In one sense, oil would be replaced by mining, since Africa hosts big reserves of energy transition minerals.   

    

 

References:

 

Officials spark backlash with controversial plan to boost energy supply: 'A risky strategy'. Joseph Clark. The Cool Down. November 2, 2025. Officials spark backlash with controversial plan to boost energy supply: 'A risky strategy'

Nigeria gives fossil gas a bigger role as “transition fuel” in climate plan. Vivian Chime. Climate Home News. September 25, 2025. Nigeria gives gas a bigger role as "transition fuel"

Guidebook on Nigeria’s Energy Transition. Tengi George-Ikoli and Nafi Chinery. February 2024. Guidebook on Nigeria Energy Transition.pdf

Government makes unprecedented $500 million move to jumpstart power supply: 'Game-changer'"We are creating a scalable model." Geri Mileva. The Cool Down. April 9, 2025. Government makes unprecedented $500 million move to jumpstart power supply: 'Game-changer'

Study reveals massive potential of solar-powered irrigation: 'Generating potential profits of over $5 billion per year'

"Furthermore, surplus electricity generated by these systems could serve other energy needs." Erin Feiger. The Cool Down. October 11, 2023. Study reveals massive potential of solar-powered irrigation: 'Generating potential profits of over $5 billion per year'

The Power Beneath Nigeria’s Energy Revival. Penresa. Forbes Africa. May 28, 2025. forbesafrica.com/africa-undiscovered/2025/05/28/the-power-beneath-nigerias-energy-revival

Country Analysis Brief: Nigeria. Last Updated: November 18, 2025. Energy Information Administration. Country Analysis Brief: Nigeria