ECOWAS seals $27bn Nigeria-Morocco gas pipeline deal, opening new chapter for regional energy security

Nigeria’s long-standing paradox of sitting on Africa’s largest proven natural gas reserves while millions of homes and businesses grapple with inadequate energy supply may be edging towards a structural shift following a landmark decision by West African leaders to move the Nigeria-Morocco Gas Pipeline from years of planning to implementation.

The breakthrough came at the 69th Ordinary Session of the Authority of Heads of State and Government of the Economic Community of West African States (ECOWAS) in Lungi, Sierra Leone, where member states signed the Intergovernmental Agreement (IGA) for the $27 billion African Atlantic Gas Pipeline (AAGP), providing the legal and sovereign framework for one of Africa’s largest cross-border energy infrastructure projects.

Beyond its significance as a transnational gas pipeline, industry experts say the agreement could reshape energy security across Nigeria, particularly in the northern states, improve electricity supply, deepen regional integration and establish a strategic energy corridor linking West Africa, the Sahel, Morocco and Europe.

The nearly 6,900-kilometre pipeline is designed to transport up to 30 billion cubic metres (bcm) of natural gas annually from Nigeria through 13 Atlantic coastal countries to Morocco before connecting with the Maghreb-Europe Gas Pipeline.

BusinessDay investigations indicate that the latest agreement marks the project’s transition from years of diplomatic negotiations, technical studies and regulatory preparations into an implementation phase backed by the collective sovereign commitment of participating countries.

The project has advanced steadily since Nigeria and Morocco signed a Memorandum of Understanding in 2022. It subsequently received approval at the 66th Ordinary Session of the ECOWAS Summit in Abuja in December 2024. The latest signing completes the regional institutional process and clears the way for the remaining signatures by Morocco and Mauritania before implementation structures are formally established.

For Nigeria, with an estimated 215.19 trillion cubic feet of proven natural gas reserves, the project represents far more than another export pipeline.

Energy analysts say the infrastructure could improve domestic gas availability by stimulating upstream investments, expanding gas processing capacity and supporting transmission infrastructure capable of supplying power plants, industries and manufacturing clusters across the country.

Northern Nigeria, where persistent energy shortages have constrained industrial growth and economic development, is expected to benefit from expanded gas infrastructure and interconnections that will also serve landlocked Sahel countries. Analysts believe improved gas supply could support electricity generation, industrial parks, fertiliser production and manufacturing activities across the region.

The project is equally expected to strengthen energy security across West Africa by providing participating countries with more reliable gas supplies, reducing dependence on costly imported fuels and supporting electricity generation.

By connecting coastal states with landlocked Sahel nations, the pipeline is expected to improve regional energy resilience at a time when many countries continue to struggle with rising electricity demand, weak transmission infrastructure and recurring energy supply disruptions.

The initiative also carries significant geopolitical implications.

Europe’s search for alternative gas supplies in recent years has renewed interest in African energy resources. The Nigeria-Morocco corridor is expected to provide an additional export route while enabling participating African countries to derive greater domestic and regional economic value from their gas resources before exporting surplus volumes.

The project was conceived under the shared vision of Muhammadu Buhari and Mohammed VI and has received renewed backing from Bola Tinubu.

Jointly promoted by the Nigerian National Petroleum Company Limited (NNPC Ltd.) and Morocco’s Office National des Hydrocarbures et des Mines (ONHYM), the project also enjoys the support of ECOWAS member states and international development partners.

Available evidence suggests preparatory work on the project is already at an advanced stage.

Officials involved in the project said Front-End Engineering Design (FEED) studies have been completed alongside route reconnaissance surveys. Environmental and social impact assessments have also progressed, while legal, commercial and regulatory frameworks required for implementation have been substantially finalised.

These milestones position the project to begin investor engagement ahead of the Final Investment Decision (FID), widely regarded as the most critical commercial stage before construction begins.

Bashir Bayo Ojulari said the agreement signed by ECOWAS leaders provides the sovereign backing required to move the project from policy discussions to execution.

According to the NNPC Limited Group Chief Executive Officer, the agreement creates the foundation for delivering about three billion cubic feet of Nigerian gas daily to regional and international markets while supporting the country’s broader gas commercialisation strategy.

“The AAGP is central to delivering that mandate by providing the infrastructure required to bring about 3 bcf/d of Nigerian gas to market,” Ojulari said.

Amina Benkhadra described the agreement as another major milestone in implementing what she called a strategic partnership jointly developed by ONHYM and NNPC Limited.

According to the ONHYM Director General, the project aligns with Morocco’s broader vision of building an integrated Atlantic Africa through shared infrastructure capable of driving economic growth and regional development.

Ekperikpe Ekpo also described the agreement as a defining moment for regional energy cooperation, saying it reflects the collective resolve of West African leaders to deliver one of the continent’s most strategic energy infrastructure projects.

The Minister of State for Petroleum Resources (Gas) said the pipeline would strengthen regional energy security while unlocking Nigeria’s vast gas reserves and expanding opportunities for industrial development across participating countries.

He noted that Nigeria possesses Africa’s largest proven gas reserves and intends to leverage the resource to build a gas-powered economy capable of supporting domestic industrialisation while serving regional and international markets.

According to him, the project extends beyond gas exports, with increased gas availability expected to stimulate investments, create jobs and provide feedstock for power generation, fertiliser plants, petrochemical industries, manufacturing and other gas-based businesses across West Africa.

Ekpo also reaffirmed the commitment of the Tinubu administration to expanding domestic gas production, developing critical infrastructure and maximising value from Nigeria’s gas resources through increased domestic utilisation and strategic exports.

Julius Maada Bio, Chairman of ECOWAS, and President of Serria Leone, announced the formal signing of the agreement during the summit, expressing confidence that the project would become a reality.

His remarks reflected growing confidence among regional leaders that a project once regarded as an ambitious long-term vision now possesses the political backing and legal framework required to attract financing and move towards construction.

BusinessDay gathered that the next phase will involve establishing two permanent institutions to coordinate implementation.

The Pipeline Higher Authority will be headquartered in Abuja to oversee governance of the project, while the AAGP Project Company will be based in Casablanca to coordinate commercial execution and prepare for the Final Investment Decision.

Construction is expected to begin in 2028, with first gas deliveries targeted for 2031, subject to financing, regulatory approvals and completion of the remaining implementation milestones.

If completed as scheduled, the African Atlantic Gas Pipeline could rank among Africa’s most consequential energy investments—not only because of its scale, but because of its potential to improve energy security in Nigeria, support industrialisation in the northern states, strengthen electricity supply across West Africa and establish a new strategic gas corridor linking Africa with global energy markets.

For a region where inadequate energy infrastructure has long constrained economic growth and regional integration, the agreement signed in Sierra Leone represents more than another diplomatic milestone. It signals the beginning of a project that could fundamentally reshape West Africa’s energy landscape over the next decade.