Unlocking Nigeria’s economic potential through strategic gas infrastructure investments

Nigeria, Africa’s largest economy, holds vast natural gas reserves, estimated at over 200 trillion cubic feet. However, the country’s inability to fully harness this resource has hindered economic growth and development.

According to industry players, strategic gas infrastructure investments offer a critical solution, poised to unlock Nigeria’s economic potential and catapult the nation into a era of sustained prosperity.

With its abundant gas reserves, Nigeria can boost power generation and industrialisation, and enhance energy security and regional cooperation. Similarly, a fully harnessed gas sector will help to diversify Nigeria’s economy and reduce dependence on oil, and ultimately create jobs and stimulate local economic growth.

Despite these opportunities, Nigeria’s gas sector faces significant challenges, including inadequate infrastructure, inefficient supply chains, and regulatory bottlenecks.

By unlocking Nigeria’s gas potential, the country can achieve economic diversification and growth. Further improve energy access and security, which will enhance the country’s global competitiveness.

According to industry experts, Nigeria’s vast gas reserves hold the key to unlocking its economic potential. Accordingly, it is stated that strategic infrastructure investments can boost power generation, industrialisation, and economic growth.

“Nigeria’s gas reserves are vast and underutilised, representing one of the greatest untapped assets in the global energy market,” Olakunle Williams, CEO, Tetracore Energy Group, said in a keynote address at the recent Nigeria Energy Conference.

Known for bringing together key players in the energy industry, the conference provided the perfect backdrop for Williams’ message about the transformative potential of Nigeria’s natural gas resources.

Building on his opening statement, Williams emphasised the urgent need for a strategic pivot in Nigeria’s energy landscape. According to him, Natural gas is not just an alternative; it is the backbone of Nigeria’s energy future.

He highlighted the country’s estimated 290 trillion cubic feet of untapped reserves. “We stand at a critical juncture, with the power to leverage these resources to drive unprecedented economic growth and ensure long-term energy security for our nation.

Citing Tetracore’s launch of a high-capacity Compressed Natural Gas (CNG) station, Williams also highlighted recent progress in decentralising energy access in Nigeria. “This initiative represents a significant step towards establishing a network of virtual pipelines across Nigeria, bringing cleaner, more affordable energy to communities previously left in the dark.”

The Tetracore CEO painted a vivid picture of the economic opportunities inherent in expanding the role of natural gas in local industries. “By incentivizing industries to adopt natural gas as their primary energy source, we can catalyze a ripple effect of positive change.”

According to him, the shift could significantly reduce the country’s dependence on imported energy products, fuel the growth of domestic manufacturing sectors, and drive job creation across various industries.

Read also: FG disburse N122bn to six companies under gas infrastructure fund

Addressing Nigeria’s electricity challenges, Williams emphasised the critical role of gas in power generation. He stated that with 70 percent of the country’s electricity already derived from gas, Nigeria must double down on improving the efficiency and capacity of its gas-fired power generation.

“Targeted investments to upgrade and expand our gas-to-power infrastructure are not just desirable – they are imperative. By streamlining gas delivery to power plants through strategic public-private partnerships, we can ensure affordable and accessible electricity for all Nigerians,” Williams said.

In taking a broader perspective in discussing Nigeria’s potential to emerge as a regional leader in energy supply, Williams said that by leveraging natural gas to power Africa, Nigeria can position not just as an energy producer, but as a central hub for energy trade and economic growth across the region. “With hundreds of millions of Africans still lacking reliable power, Nigeria’s gas reserves can be a game-changer for industrialization across the continent.”

Williams concluded his keynote with an optimistic outlook on Nigeria’s energy future, disclosed that the country’s ambition to become a $1 trillion economy by 2030 is not a pipe dream – rather it is an achievable goal if Nigeria fully embrace and strategically develop its natural gas potential.

Williams rallied the audience with a call to action in his closing statement, urging that the path forward is clear. “When we focus on these strategic solutions, we can not only address our energy challenges but also open up unparalleled economic growth and development. Together, we can pave the way for a more sustainable, prosperous future – not just for Nigeria, but for all of Africa. The time to act is now”

Williams’ keynote at the Nigeria Energy Week served as a catalyst, setting the stage for Nigeria’s journey towards a gas-powered future and inspiring stakeholders to take decisive action in realising the country’s vast potential in the global energy landscape.