Nigeria Sees Uptick in Natural Gas Production

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Nigeria’s gross gas production has risen to 7.63 billion standard cubic feet per day from about 6.83 billion standard cubic feet per day in 2023, the Presidency has said.

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Special Adviser to the President on Oil and Gas, Mrs Olu Verheijen, disclosed this at the Nigerian-British Chamber of Commerce Energy Day 2026.

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A text of her presentation at the event, held recently in Lagos, was made available to the News Agency of Nigeria on Tuesday.

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Verheijen also disclosed that the nation’s proven reserves now stand at over 215 trillion cubic feet of gas.

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She said the increase was achieved through targeted presidential directives which improved the environment for deep-water, non-associated gas and midstream infrastructure.

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The Special Adviser disclosed that over $4 billion in international oil company divestments were refocused on deep-water and integrated gas.

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She said the feat was also achieved because President Bola Tinubu’s administration successfully addressed the challenge of the cost of doing business.

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According to her, contracting that once took 36 months currently takes around 14 months, while the government is driving toward a target of six months.

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“The market responded. Nigeria’s share of African upstream Final Investment Decisions rose from about four per cent in 2023 to roughly 40 per cent across 2024 and 2025.

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“With the development, about $10 billion was committed, with a visible pipeline of some $500 billion ahead.

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“Stalled projects are moving again, including Bonga North, Ubeta and HI gas developments, and new non-associated gas developments that anchor long-term supply to our LNG exports.

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“When Nigeria improves the rules of the game, capital returns to the field,” she said.

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Beyond increased production, the Special Adviser said the administration repositioned gas as the foundation for industrialisation.

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According to her, the administration does not see gas as merely a transition fuel, but as a development fuel, central to power, fertiliser, petrochemicals, clean cooking, CNG transport, LNG exports and manufacturing.

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“The goal is not simply to produce more gas; it is to ensure Nigerian gas becomes Nigerian power, Nigerian products, Nigerian jobs and Nigerian exports.

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“A nation does not grow wealthy by owning resources; it grows wealthy by converting them into value,” she said.

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Verheijen said the Tinubu administration is restoring financial viability to the gas-to-power chain.

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She noted that for years, the power sector was constrained by accumulated arrears, weak payment discipline and tariff distortions.

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She said the Presidential Power Sector Debt Reduction Programme was built to address the challenges directly.

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The Special Adviser recalled that the Federal Executive Council approved a bond programme of up to N4 trillion to settle verified generation and gas company arrears.

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“Under it, generation companies have signed full and final settlement agreements worth about N2.28 trillion.

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“The N501 billion Series 1 bond was issued and oversubscribed, with payments to generation and gas companies now underway.

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“A second series of N729 billion will follow to complete the first phase,” she said.

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Verheijen restated that the fund was not a bailout, but a strategic reset that cleared verified arrears, restored liquidity, and gave operators the footing to invest with confidence. (NAN)

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