*Expands LPG Penetration to One Million Homes in South-East
By Silverline Ifeanyi Onyeabor
Nigeria’s gas sector received a significant boost recently as President Bola Ahmed Tinubu’s administration advanced a dual-track strategy to accelerate upstream gas development, strengthen gas-to-power generation, and deepen domestic gas utilisation under the Decade of Gas initiative.
At the national level, the National Economic Council (NEC) approved the settlement of legacy debts totalling N185 billion owed to gas producers, a long-standing liability that has constrained investment and gas supply to power plants. Simultaneously, the Federal Government expanded its Liquefied Petroleum Gas (LPG) penetration programme with the flag-off of a major clean cooking gas outreach in the South-East, targeting one million households annually in the zone.
The NEC decision, reached at its December 2025 meeting, which marked a turning point for Nigeria’s gas industry. The unpaid obligations, accumulated over years for gas supplied to the domestic market, particularly the power sector, have weakened the financial position of gas producers, discouraged upstream investment, and contributed to chronic gas shortages for electricity generation.
By approving the settlement of the N185 billion debts through a royalty offset mechanism, the council signalled renewed government commitment to restoring confidence in the gas value chain. Analysts say the move is expected to unlock new upstream investments, increase domestic gas production, and improve gas availability for power generation, with positive implications for electricity supply and industrial growth.
President Tinubu has consistently identified natural gas as a cornerstone of Nigeria’s energy transition and economic reform agenda. His administration’s focus on clearing financial bottlenecks, expanding gas infrastructure, and promoting domestic utilisation aligns with broader efforts to stabilise gas-to-power agenda, which seeks to improve electricity availability and reliability by ensuring adequate gas supply to thermal power plants. Analysts say improved gas supply could significantly reduce power outages and support manufacturing, small businesses and households.
Industry experts expect the debt clearance to restore trust between the government and gas producers, stimulate increased gas production, enhance power generation capacity and attract both local and foreign investment into the sector.
The move is consistent with Nigeria’s Decade of Gas programme, which aims to work with critical stakeholders to unlock more than 12 billion cubic feet per day (bcfd) of gas supply by 2030.
That vision was reinforced in Owerri, Imo State, where the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, officially flagged off the LPG Penetration Programme and distribution of cooking gas cylinders in the South-East, in partnership with the Imo State Government.
Speaking at the event, Ekpo described the programme as another major milestone in the implementation of the Decade of Gas Initiative championed by President Tinubu. He said the Federal Government is expanding LPG penetration across all six geo-political zones, with the South-East programme designed to reach up to one million homes per year.
“Clean cooking is not just an energy choice; it is a life-changing intervention,” the minister said, noting that millions of Nigerian households still rely on firewood, charcoal and kerosene—fuels linked to serious health risks, environmental degradation and socio-economic burdens, particularly on women and children.
Ekpo explained that the transition to LPG would significantly reduce exposure to harmful smoke responsible for respiratory diseases, cut the time women and girls spend gathering firewood, protect forests and biodiversity, lower household energy costs, and improve safety through the use of modern, regulated fuel.
According to the minister, over 17 million Nigerian households still depend on biomass for cooking, making the country one of the largest contributors to deforestation and household-level greenhouse gas emissions in Africa. “By transitioning these households to LPG, we significantly reduce carbon emissions while safeguarding our forests and the climate,” he said.
He added that the LPG expansion aligns with the United Nations Clean Cooking Agenda and contributes directly to key Sustainable Development Goals, including SDG 7 (Affordable and Clean Energy), SDG 5 (Gender Equality), and SDG 13 (Climate Action).
The minister noted that the LPG penetration programme has already been launched across other geo-political zones—North-Central, South-South, South-West, North-East and North-West—and is now being fully rolled out in the South-East. Under the Decade of Gas framework, the Federal Government aims to transition at least five million Nigerian homes to clean cooking gas by 2030.
Ekpo commended the Imo State Government for embracing the initiative and providing an enabling environment, while also acknowledging the role of the Decade of Gas Programme Office and private sector partners in driving nationwide implementation.
“To our women and youth beneficiaries, the cylinders you receive today are tools of empowerment,” he said, adding that LPG expansion creates opportunities across the gas value chain, from cylinder manufacturing and distribution to retail supply, maintenance and safety training.
He stressed that the South-East, known for its strong entrepreneurial culture, stands to benefit significantly from emerging opportunities in the gas economy, including job creation and local enterprise development.
The minister further disclosed that the Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), will intensify LPG safety education and expand last-mile distribution networks to ensure safe and confident adoption by households.
Industry stakeholders view the combined impact of clearing gas supply debts, boosting upstream investment, expanding gas-to-power capacity, and accelerating LPG adoption as a holistic approach to repositioning gas as a catalyst for national prosperity.
“With these reforms,” Ekpo said, “we are building a Nigeria where no child grows up inhaling harmful smoke, where women cook with dignity and safety, where forests are preserved, and where gas truly drives economic growth and sustainable development.”
Together, the NEC’s debt resolution and the expanded LPG penetration programme underscore a renewed momentum under President Tinubu’s leadership to translate Nigeria’s vast gas resources into tangible social, economic and environmental benefits.