Gas
Federal government reassures Nigerians on gas pricing stability
Nigerian officials have stated that domestic gas prices will remain insulated from international oil shocks, while highlighting infrastructure progress in the sector.
Key points
- Compressed Natural Gas and cooking gas prices will not follow petrol hikes.
- Proven natural gas reserves reached 215.19 trillion cubic feet by January 2026.
- Major pipeline infrastructure projects near completion to boost domestic supply.
What happened
The federal government has assured citizens that prices for Compressed Natural Gas and cooking gas will not experience the same upward trajectory as petrol. According to THISDAYLIVE, Tosin Coker, representing the Presidential Initiative on Compressed Natural Gas and Electric Vehicles, stated during a media briefing in Kano that domestic gas pricing is locally managed. He noted that unlike petrol, whose costs are subject to international benchmarks and geopolitical disruptions such as the crisis in Iran, natural gas is abundant within the country. Coker projected that broader adoption would increase market competition and potentially lower consumer costs over time.
Providing updates on the national gas sector, Taofeek Balogun from the Decade of Gas Secretariat reported that Nigeria's proven gas reserves rose from 208.83 trillion cubic feet in 2023 to 215.19 trillion cubic feet by January 2026. Average gas production increased to roughly 7.5 billion cubic feet per day, with domestic supply surpassing 2 billion cubic feet daily. Balogun also noted $3.5 billion in committed investments across four key projects, alongside the full completion of the OB3 pipeline and near-completion of the AKK pipeline. Public funding of ₦671 billion has helped draw approximately ₦1.6 trillion in private capital.
Why it matters
For energy investors and policymakers in Nigeria, decoupling domestic gas pricing from global oil volatility is essential for the success of the nationwide transition to cleaner fuels. With international benchmarks such as Brent crude trading at 115.22 US dollars per barrel and gasoline at 2.897 US dollars per gallon as of October 2020 data from the US Energy Information Administration, protecting local consumers from imported inflation remains a core regulatory priority. Expanding domestic gas utilisation supports broader energy security and cleaner cooking initiatives, which target five million households by 2030 ahead of the planned Willing Buyer, Willing Seller market framework introduction in September 2028.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
21.9% of electricity in the world came from gas in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
