The Nigerian energy sector is witnessing a rising wave of concern over the sluggish penetration of compressed natural gas (CNG) and liquefied petroleum gas (LPG) plants across the country. As the nation seeks to diversify its energy sources and embrace cleaner alternatives, industry stakeholders have flagged the critical shortfall in gas infrastructure as a pressing challenge.
According to recent data provided by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the number of operational CNG plants across the country stands at fewer than 50, while LPG plants number less than 3,000. For a country with a population exceeding 200 million, these figures are alarmingly inadequate, raising doubts about Nigeria’s capacity to meet its growing energy needs and fully transition towards cleaner fuel sources.
The Chief Executive Officer of NMDPRA, Mr. Farouk Ahmed, shared these figures at a recent industry event in Lagos.
He emphasised that Nigeria must develop a robust gas sector not only to secure domestic energy needs but also to position itself as a reliable energy supplier for neighbouring countries, thereby enhancing regional energy security and fostering economic collaboration.
Ahmed added that as the country invests in gas infrastructure, it must also ensure diversification of energy sources and reduce dependency on any single fuel.
The NMDPRA CEO noted that the Presidential CNG initiative is one of the federal government’s policies aimed at driving energy security and reducing dependency on oil.
He pointed out that the global shift towards cleaner energy presents Nigeria with both challenges and opportunities.
Farouk maintained that as Europe and other regions seek alternatives to their traditional gas suppliers, Nigeria stands poised to be a reliable partner. Projects like the Nigeria-Morocco Gas Pipeline and the West African Gas Pipeline position Nigeria to meet regional and international gas demands while bolstering its influence on the global stage.
However, he stressed that as a developing nation and a member of OPEC, Nigeria is perceived as delaying climate actions aimed at achieving net-zero goals.
According to him, Nigeria must navigate the complexities of loyalty, and our engagement must be strategic, advocating for gas as a key element in Africa’s energy transition and ensuring that long-term supply agreements are favourable.
He noted that Nigeria is at a crossroads, facing the challenge of transitioning to a new energy future while resolving its economic and social crises.
Looking back, he mentioned that Nigeria’s Energy Transition Plan (ETP) was launched in 2022, partly to address the challenges of energy access, reliability, and climate change while promoting economic growth.
“Gas was chosen to play a crucial role as a transition fuel, wheeling the nation from carbon-dominated energy sources to less carbon-intensive fuels like LPG, CNG, LNG, ethanol, and biodiesel, among others, before transitioning to renewables in the near future.”
He stated that while the ETP serves as a blueprint and broad spectrum on which the transition will be tailored, the trilemma of finance, energy security, and international politics constitutes a hurdle that must be confronted head-on.
Nigeria, he said, is blessed with over 209 trillion cubic feet of proven associated and non-associated gas reserves, the largest in Africa and among the top ten globally.
But despite the immense potential, gas has often taken a back seat to crude oil.
Ahmed argued that today, Nigeria has a chance to change that narrative because, as a cleaner-burning fuel, natural gas emits about 50 percent less CO2 than coal and 30 percent less than oil, making it an ideal bridge to a low-carbon future while still meeting our immediate energy needs.
According to him, switching to gas can also help manage the intermittent challenges faced by renewable energy sources like wind and solar.
“By embracing gas, we are not just talking about an energy transition; we are ensuring a reliable, cleaner, and more sustainable energy supply for Nigeria.”
According to stakeholders, the consequences of this slow rollout are manifold. On the one hand, it jeopardises the federal government’s broader strategy of promoting CNG and LPG as viable alternatives to traditional fossil fuels, which remains essential for reducing carbon emissions, improving air quality, and ensuring energy security.
On the other hand, the limited reach of these gas plants leaves millions of households and industries reliant on more expensive, less sustainable energy options, further exacerbating economic strain.
Source: Sun
