LAGOS — Nigeria has recorded a significant boost in its gas production, with gross output rising to 7.63 billion standard cubic feet per day (scfd), up from 6.83 billion scfd in 2023. The figures were disclosed by the Special Adviser to the President on Oil and Gas, Mrs. Olu Verheijen, during the Nigerian-British Chamber of Commerce Energy Day 2026.
According to Mrs. Verheijen, the growth in output is supported by proven gas reserves now standing at over 215 trillion cubic feet. The uptick is attributed to targeted presidential directives designed to optimize the business environment for deep-water and non-associated gas developments, as well as midstream infrastructure.
Driving Investment and Efficiency
The administration has successfully refocused over $4 billion in international oil company divestments toward deep-water and integrated gas projects. Furthermore, the government has streamlined bureaucratic processes, reducing contracting timelines from 36 months to approximately 14 months, with a long-term goal of hitting six months.
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Key highlights of the administration's energy strategy include:
• Market Response: Nigeria’s share of African upstream Final Investment Decisions (FIDs) surged from 4% in 2023 to roughly 40% between 2024 and 2025.
• Capital Commitment: Approximately $10 billion in capital has been committed, with a project pipeline estimated at $500 billion.
• Stalled Projects: Major developments, including Bonga North, Ubeta, and HI gas projects, have been reactivated to bolster long-term LNG export supply.
Gas as a 'Development Fuel'
The Presidency emphasized that gas is being positioned as a central pillar for industrialization serving as a catalyst for power, fertilizer, petrochemicals, and CNG transportation. "A nation does not grow wealthy by owning resources; it grows wealthy by converting them into value," Verheijen noted.
To ensure the financial sustainability of the sector, the government has launched the Presidential Power Sector Debt Reduction Programme. This strategic reset, which includes a bond programme of up to N4 trillion, is designed to settle verified arrears for generation and gas companies. Thus far, generation companies have signed settlement agreements worth N2.28 trillion, with the first series of the bond already oversubscribed and payments underway.
These reforms are intended to restore liquidity, provide investors with the confidence to expand, and ultimately translate Nigeria’s gas resources into domestic power, jobs, and export value.
