Nigeria aims to boost economic growth by leveraging its vast natural gas reserves, but stakeholders are concerned about practical implementation. Despite investments in infrastructure, questions persist regarding the speed of gas access expansion for industries, homes, and transportation. In an interview with Valuechain’s Emmanuel Peter, Teryima Denen Toryila, Executive Director of Gas, Power & Renewable Energy at A.Y.M. Shafa Holdings Limited, discussed infrastructure’s crucial role in gas utilisation, assessed Nigeria’s Decade of Gas agenda, and highlighted the need for consistent policy and a favourable investment climate to unlock the nation’s gas potential. He spoke at the Association of Local Distributors of Gas (ALDG) Business Forum in Abuja, themed “From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives”.
The theme of this year’s forum calls for a reassessment of Nigeria’s gas distribution imperatives. What specific aspects of the current gas distribution framework require urgent reform to accelerate domestic gas penetration across the country?
Over the years, we have spent a great deal of time discussing policies, gas reserves, and regulatory frameworks. While these conversations are important, the focus today must shift from policy and reserves to actual gas utilisation. Gas has no value when it remains underground.
Regardless of how many policies the government introduces, if the gas is not utilised to transform the economy, its potential remains unrealised. The key challenge is bridging the gap between gas reserves, policy formulation, and practical utilisation.
The most critical factor in closing this gap is infrastructure. We need to build the infrastructure required to transport gas to end users, provide incentives that encourage adoption, and create an environment where industries and consumers can easily access and utilise gas. Until that happens, Nigeria cannot fully realise the value of its abundant gas resources.
Significant investments have been made in gas infrastructure over the years, including pipelines, processing facilities, and virtual pipeline solutions. Are these investments translating into improved gas availability for consumers, and what gaps still need to be addressed?
The industry has made significant progress. During the conference, we heard that the River Niger crossing for the OB3 pipeline has been completed. Progress has also been made on the AKK pipeline, and we have seen companies such as Axxela continue to expand gas delivery infrastructure. These are major milestones. Many of these projects have been under development for years, and today we are beginning to see them come to life. However, the real measure of success is whether these projects make gas more accessible to consumers and industries. Without that accessibility, their impact will remain limited.
We are already seeing the positive effects of government policy reforms. The removal of fuel subsidies and the establishment of the Presidential CNG Initiative have accelerated the adoption of alternative fuels. Many vehicles are now using Compressed Natural Gas (CNG) instead of Premium Motor Spirit (PMS), while transport operators and industries are increasingly embracing CNG and Liquefied Natural Gas (LNG).
These developments will deliver significant benefits, not only economically but also environmentally. Nevertheless, there is still a long way to go. I would estimate that we have achieved only about 10 to 15 per cent of what needs to be done.
Until every Nigerian has access to reliable electricity and clean cooking fuels, and until we significantly reduce dependence on firewood, kerosene, and other traditional fuels, we cannot say we have fully achieved our objectives. Progress is evident, but substantial work remains.
As Nigeria pursues its energy transition objectives, natural gas is expected to play a central role in power generation, industrialisation, transportation, and clean cooking. How can the country develop an integrated gas distribution strategy that effectively serves these competing demands?
At this point, I do not believe the challenge is the absence of strategy. Nigeria already has numerous policy and strategy documents that clearly define the direction the country should take.
The government has declared this decade as the “Decade of Gas”, and natural gas utilisation remains a national priority. The strategies are already in place. The real question is how to translate those strategies into practical actions that generate value for the economy and improve the lives of citizens.
That is the conversation we should be having today. While much remains to be done, I do not think we are doing a bad job. We can see tangible progress, and government efforts in policy implementation and regulation are helping to guide the industry in the right direction.
The gaps are still there, but there is no doubt that meaningful progress has been made.
Private sector participation remains critical to expanding gas access. What policy, regulatory, and commercial incentives are necessary to attract greater investment into gas distribution networks, particularly in underserved regions of the country?
Several policy initiatives have already created a more attractive investment environment.
One of the most important developments following the enactment of the Petroleum Industry Act (PIA) was the establishment of the Midstream and Downstream Gas Infrastructure Fund (MDGIF), which is designed to support gas infrastructure development and improve accessibility across Nigeria.
We have also seen the impact of the Presidential CNG Initiative, which has provided incentives for vehicle conversion from PMS to CNG. The economic benefits of this programme are already visible.
In addition, broader initiatives such as the Decade of Gas programme and other industry reforms are beginning to yield results. These policies have been in place for some time, but we are now starting to see their impact.
Pricing frameworks have been established, pipeline networks are expanding, and more investors are entering the sector. With continued price stability, sustained government support, and ongoing incentives, I believe the industry will continue to attract investment and deliver greater economic benefits over time.
Looking ahead, what practical steps should the government, regulators, operators, and financiers prioritise over the next five years to ensure that Nigeria’s vast gas resources are transformed into tangible economic benefits for households, industries, and communities nationwide?
The most important priority is policy consistency. The success of initiatives such as the Presidential CNG Initiative demonstrates what can happen when government remains committed to a clear policy direction. We must avoid abrupt policy shifts that could undermine investor confidence or reverse the gains already achieved.
Investors have committed significant capital to gas infrastructure and related projects. Any sudden policy change could jeopardise these investments and slow industry growth.
Over the next five years, policy consistency, regulatory stability, and continued government incentives will be crucial factors in determining how successfully Nigeria expands natural gas utilisation and maximises the value of its resources.
Your Final Thoughts
Thank you for the opportunity to share my views. I hope that the insights discussed during this conversation will contribute to a better understanding of the opportunities within Nigeria’s gas sector and encourage greater participation from industry stakeholders and prospective investors.
Nigeria has enormous gas potential. By working together to develop infrastructure, maintain policy consistency, and encourage investment, we can unlock that potential and use it to drive economic growth, improve energy access, and strengthen the nation’s future.
