The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced plans to attract and drive a projected $4.9 billion capital expenditure (capex) in non-associated gas (NAG) developments, as part of the federal government’s strategy to expand domestic gas production, enhance energy security, and position Nigeria as a key global gas supplier.
The move comes amid renewed efforts to diversify the nation’s hydrocarbon portfolio and strengthen its transition to cleaner energy sources. Non-associated gas, which refers to natural gas found in reservoirs that are not in contact with crude oil, has become increasingly vital to Nigeria’s quest for energy sustainability and economic diversification.
According to the Chief Executive Officer of NUPRC, Gbenga Komolafe, the Commission is working with industry stakeholders to unlock investments in the NAG segment of the upstream petroleum industry. He noted that the regulatory agency has identified several undeveloped gas fields and opportunities that could significantly boost production if fully optimized.
Komolafe disclosed that the Commission has mapped out a strategic framework aimed at ensuring that Nigeria maximizes its vast gas potential, particularly through the development of standalone gas projects. “We are targeting an estimated $4.9 billion in capital investments in non-associated gas projects over the next few years. This will not only enhance gas availability for power generation and industrial use but also strengthen Nigeria’s position as a reliable LNG supplier,” he said.
He explained that the plan aligns with President Bola Tinubu’s administration’s renewed push to harness Nigeria’s 209 trillion cubic feet (tcf) of proven gas reserves for economic growth. Komolafe emphasized that gas remains Nigeria’s transition fuel and a key enabler of sustainable industrialization.
The NUPRC boss highlighted that the Commission is also introducing policies to streamline licensing processes, reduce bureaucratic bottlenecks, and encourage investments in gas infrastructure. He said the agency was collaborating with the Nigerian National Petroleum Company Limited (NNPC Ltd.), international oil companies (IOCs), and independent operators to accelerate project approvals and reduce production delays.
Energy analysts believe the move could be a game changer for Nigeria’s gas sector, which has long struggled with underinvestment despite its enormous potential. The focus on non-associated gas could help address persistent domestic shortages, support liquefied natural gas (LNG) exports, and provide feedstock for fertilizer and petrochemical industries.
Dr. Bala Zaka, an oil and gas expert, described NUPRC’s plan as a “timely and strategic intervention” that could unlock new revenue streams for the country. He said, “For too long, Nigeria has concentrated on crude oil exports while neglecting its gas wealth. The non-associated gas projects being pursued by the NUPRC could redefine the nation’s energy landscape if backed by strong policy implementation.”
He further noted that gas commercialization would help reduce gas flaring, improve environmental standards, and provide affordable energy for manufacturing. “Investing in gas infrastructure means creating jobs, stabilizing electricity supply, and boosting industrial output,” Zaka added.
The NUPRC’s $4.9 billion capex target also aligns with Nigeria’s Decade of Gas Initiative, which was launched to promote gas utilization as a major driver of economic growth. Under this initiative, the government aims to expand domestic gas processing capacity, develop new pipelines, and improve export capabilities through projects like the Nigeria-Morocco Gas Pipeline and AKK Pipeline.
Komolafe stated that the Commission is ensuring that all operators comply with the domestic gas delivery obligations (DGDO) to guarantee adequate supply to local industries. He also revealed that the NUPRC is working to attract private capital into midstream and downstream gas developments through favorable fiscal terms and transparent regulatory frameworks.
He said, “The NUPRC is not just regulating; we are also facilitating. Our focus is to create an enabling environment where investors can deploy capital confidently, knowing that the regulatory framework is stable and transparent.”
Industry observers have pointed out that despite being Africa’s largest holder of gas reserves, Nigeria still faces infrastructure deficits that hinder gas monetization. Many of the country’s gas fields remain stranded due to inadequate pipelines, financing challenges, and regulatory uncertainties.
However, with NUPRC’s renewed investment push, stakeholders are optimistic that the tide is turning. Projects like the Assa North-Ohaji South (ANOH) gas development, OB3 pipeline, and various marginal field gas programs are expected to play critical roles in achieving Nigeria’s energy objectives.
According to Komolafe, part of the $4.9 billion investment target will go into developing these and other non-associated gas projects that can support local power generation and export markets. He reiterated that Nigeria must take advantage of rising global demand for cleaner fuels and natural gas to position itself as a major supplier to Europe and other regions.
The Commission also plans to strengthen its data management systems to provide investors with reliable geological and production information, improving transparency and reducing investment risks. The NUPRC boss added that digitization of licensing and reporting processes is underway to make operations more efficient.
In addition to attracting foreign investment, the Commission is encouraging indigenous oil companies to take an active role in gas field development. Komolafe emphasized that domestic operators have shown growing technical capacity and financial strength, which can be leveraged to expand gas production sustainably.
Analysts also believe that achieving the $4.9 billion capex target will have ripple effects on Nigeria’s economy, especially in job creation, energy access, and foreign exchange earnings. By exporting more gas through LNG and regional pipelines, Nigeria could earn billions of dollars annually while reducing its import dependence on refined petroleum products.
In conclusion, the NUPRC’s plan to drive $4.9 billion in non-associated gas investments represents a bold and strategic step toward realizing Nigeria’s gas-led industrialization vision. If implemented effectively, the initiative could transform the nation’s energy architecture, strengthen its fiscal position, and make gas a true cornerstone of sustainable economic growth.
Komolafe summed it up succinctly: “Nigeria’s future is in gas. With the right investments and partnerships, we can power industries, light up homes, and drive prosperity for decades to come.”
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