Nigeria’s 215 TCF Gas Reserves Position It at Energy Ambitions …Indigenous Producers, Lo Strengthen Upstream Performance

Nigeria’s gas sector is entering a decisive phase of expansion, with proven reserves rising to 215.19 trillion cubic feet (tcf) as of January 1, 2026, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The latest figures mark an increase from 210.54 tcf in 2025, reflecting new discoveries, improved reservoir evaluations, and ongoing technical reassessments across producing and frontier basins.

The reserve growth comes at a time when Nigeria is intensifying efforts to reposition natural gas as the foundation of its energy transition, industrial development, and export strategy. Although crude oil and condensate reserves declined slightly to 37.01 billion barrels from 37.28 billion barrels the previous year, the country’s overall hydrocarbon outlook remains robust. The Reserve Life Index of 59 years for oil and 85 years for gas further underscores the long-term sustainability of Nigeria’s upstream resource base.

At the centre of the regulatory framework is Oritsemeyiwa Eyesan, Chief Executive of NUPRC, who said the upward revision in gas reserves reflects both new discoveries and enhanced field performance analysis. She reaffirmed that the Commission remains committed to strengthening upstream efficiency and expanding reserves under the Petroleum Industry Act (PIA), 2021, which continues to serve as the cornerstone of Nigeria’s petroleum governance reforms.

The growth in gas reserves is not accidental but the result of deliberate policy actions aimed at improving data quality, encouraging investment in exploration, and ensuring that assets are optimally developed. Part of the Commission’s focus is on ensuring sustainable production while attracting capital needed to unlock stranded and underdeveloped gas resources.

“In furtherance of the provisions of Chapter 1, Part III, Section 7 (g), (i), (j), (k), (m), (q), (r) and other powers enabling me in this respect, I, Mrs. Oritsemeyiwa Eyesan, Commission Chief Executive, hereby declare the Total Oil and Condensate reserves of 37.01 Billion Barrels and Total Gas reserves of 215.19 Trillion Cubic Feet as the official National Petroleum Reserves Position as of 1st January 2026,” Eyesan said.

“The Commission, in keeping with its mandate, is committed to improving upstream sector performance, enhancing the growth of oil and gas reserves, and ensuring stable production for shared prosperity via operationalisation of the Petroleum Industry Act, 2021 (PIA), and implementation of the strategic pillars of the Commission.”

Nigeria’s independent oil producers have significantly increased their contribution to national output in recent years. This progress would not have been possible without the support of local service providers, which are enhancing production and improving efficiency across the industry. These companies partner with leading multinationals such as Baker Hughes, Schlumberger, and Halliburton to deliver projects efficiently, supported by the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010. As a result, local content in the industry rose to 61 percent last year, up from about 56 percent the previous year.

Speaking on partnerships with multinational service companies, the Chairman of the Petroleum Technology Association of Nigeria (PETAN) and African Local Content Organisation (ALCO), Engr. Wole Ogunsanya, said the core objective of such collaborations is to boost Nigeria’s oil and gas production.

According to him, every initiative within the industry’s value chain must ultimately contribute to higher output and improved efficiency, as that remains the central value proposition of the sector.

He noted that existing partnerships are already playing a significant role in expanding the country’s production capacity. When indigenous firms and international partners collaborate effectively, he said, the entire oil and gas ecosystem benefits through stronger operational capability, enhanced technology deployment, and faster project execution.

Ogunsanya, who is also the CEO of Geoplex Drillteq Limited, further explained that the gains are not limited to the companies directly involved. Clients who engage these service providers also benefit from improved efficiency and reliability in operations. More broadly, the country stands to gain increased production levels, greater economic value, and a stronger industrial base.

“What we are witnessing today is that these partnerships are already contributing to the growth of Nigeria’s production capacity. When indigenous companies and international partners work together effectively, the entire ecosystem benefits. The partnerships strengthen operational capabilities, improve technology deployment, and accelerate project delivery,” he said in a recent interview with Majorwaves.

In his view, the partnership model ultimately delivers value across all stakeholders in the industry, resulting in higher production, greater value creation, and a stronger industrial base.

Indigenous Operators and Service Companies Deepen Collaboration

Ogunsanya also commended companies under the Independent Petroleum Producers’ Group (IPPG) for demonstrating strong operational capability and improving production outcomes, noting that indigenous operators have proven their ability to manage complex oil and gas assets.

“We are extremely proud of what the IPPG companies have accomplished,” he said. “They have demonstrated that indigenous operators possess the capacity to manage complex oil and gas assets and significantly increase production. Their performance has strengthened confidence in Nigeria’s local content framework and reinforced the case for continued indigenous participation across the upstream sector.”

He explained that PETAN members maintain a strong and collaborative relationship with IPPG operators, working closely with them to ensure efficient service delivery across upstream projects.

“Today, in most IPPG operated assets, indigenous service companies provide a significant share of operational support. It would be difficult to find an IPPG operated field where PETAN members are not actively contributing. In many cases, local companies deliver between 70 and 80 percent of the services required for these operations,” he added.

Gas Becomes the Centre of Nigeria’s Upstream Expansion

Across the broader upstream landscape, gas is increasingly emerging as the dominant growth driver. According to NNPC Limited’s One Year Mandate Report Summary, released recently, gas production averaged around 7.5 billion standard cubic feet per day (Bscf/d) in 2025, signalling steady progress in output recovery. Crude oil production stood at 1.51 million barrels per day (bpd) in February, according to NNPC. However, the emphasis has clearly shifted toward gas as Nigeria’s primary transition fuel.

The company highlighted significant progress on critical infrastructure projects, particularly the Ajaokuta–Kaduna–Kano (AKK) gas pipeline, which is now 93 percent complete, and the Obiafu–Obrikom–Oben (OB3) River Niger crossing, which has reached 96 percent completion. These projects are expected to transform domestic gas transportation, linking supply clusters in the south to demand centres in the north, while supporting power generation, industrial expansion, and reduced gas flaring.

Financially, NNPC Limited also reported revenue of N2.68 trillion, reflecting improved operational performance and stronger upstream output. The company described its current strategy as one focused on production resilience, infrastructure delivery, and deeper collaboration with operators to ensure sustained recovery across key assets.

In January, NNPC formally launched its Gas Master Plan 2026 (NGMP 2026), signalling a pivotal shift in Nigeria’s energy transition strategy. Speaking at the unveiling, the Group Chief Executive Officer of NNPC Ltd, Bashir Bayo Ojulari, described the plan as a bold, execution-driven roadmap aimed at unlocking Nigeria’s abundant gas reserves and positioning the country as a globally competitive gas hub.

Ojulari noted that the country’s gas potential could rise to as much as 600 tcf, a prospect further reinforced by the PIA and the Federal Government’s gas-focused energy transition agenda.

According to him, the plan is designed not only to meet but surpass the Presidential target of raising gas production to 10 Bscf/d by 2027 and 12 Bscf/d by 2030, while also catalysing over $60 billion in new investments across the oil and gas value chain within the same period.

“The Plan is structured not just to deliver – but to exceed – the Presidential mandate of increasing national gas production to 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030, while catalysing over 60 billion dollars in new investments across the oil and gas value chain by 2030,” Ojulari said.

Indigenous Operators Drive Production Surge

Beyond state-led efforts, indigenous operators are playing an increasingly central role in Nigeria’s gas expansion. Renaissance Africa Energy has emerged as one of the standout performers in the post-divestment era, recording gas production of 2.2 Bscf/d. The company attributes this milestone to regulatory reforms introduced by NUPRC, improved asset management, and a more enabling investment environment.

Its Managing Director and Chief Executive Officer, Tony Attah, said the company has already exceeded its internal targets and is now aiming for 3 Bcf/d by 2030. He explained that the company intends to pursue between 10 and 15 Field Development Plans annually, a strategy that underscores the scale of ambition driving Nigeria’s indigenous upstream operators.

Attah also praised regulatory reforms for restoring investor confidence and improving operational efficiency across the sector, noting that collaboration with government institutions would remain critical to achieving long-term expansion goals.

“The NUPRC should feel proud of the CCE here. Looking at the transformation happening in the industry and the regulatory side, we do not have a better team to drive the industry in the whole of Africa than the NUPRC team,” Attah said.

“We speak to energy security in Africa, but more importantly, the industrialisation of Nigeria… I am very proud to confirm that yesterday (30/03/2026) we delivered 2.2Bcf of gas, and we beat our target of 2030.”

His remarks reflect a broader shift in Nigeria’s upstream industry, where indigenous firms are increasingly taking over assets previously operated by international oil companies.

Similarly, Oando Plc reported a 24 per cent rise in gas production to 19,982 barrels of oil equivalent per day (boepd) in its unaudited 2025 financial results, alongside a significant 715 per cent surge in natural gas liquids (NGL) output to 1,231 bpd.

The company attributed this strong performance to the full-year consolidation of its NAOC Joint Venture stake, enhanced operational efficiency driven by the reactivation of previously shut-in wells, and strategic infrastructure upgrades across its operated assets.

Aradel Holdings also reported gas production of 18.76 Bcf in FYUA 2025, marking a 59 per cent increase from 11.81 Bcf in FY 2024. Average daily output also rose by 59 per cent to 51.4 mmscf/d, up from 32.4 mmscf/d in the previous year, driven by new gas wells and improved recovery efforts.

Heirs Energies, which acquired a 45 per cent stake in OML 17 for $1 billion in January 2021 and assumed operatorship ahead of schedule in July 2021, has also recorded significant gains.

Five years into its operations, the company has significantly ramped up output, doubling gas production from less than 50 mmscf/d to over 120 mmscf/d. It has also tripled the volume of gas supplied to the domestic market, increasing from 30 mmscf/d to more than 100 mmscf/d, thereby supporting growth in electricity generation.

The company’s gas production is entirely dedicated to the domestic market, with no exports. It is currently the largest gross producer feeding into the Trans-Niger Pipeline and the leading gas supplier in eastern Nigeria.

Speaking at an event in December 2025, the Chief Executive Officer of Heirs Energies, Osa Igiehon, described the impact as transformative, noting that power plants are now operating at full capacity.

“The impact is catalytic. All the power plants are at full capacity. People in Eastern Nigeria see the difference every day. It’s changing lives for homes, businesses, small enterprises and large businesses alike,” he said.

Indigenous oil and gas producers now account for over 50 per cent of Nigeria’s crude oil and gas output, marking a significant shift in the country’s energy landscape. Average liquids production rose to approximately 1.64 million bpd in 2025, with local operators contributing more than half of total output — a milestone driven by strengthened domestic capacity and supportive policy reforms.

Speaking at an industry event in February, Chairman of IPPG, Adegbite Falade, called for coordinated efforts to build a resilient and self-sustaining energy sector capable of delivering long-term national prosperity.

“Nigeria’s energy future must be defined by self-sufficiency, competitiveness, and collaboration. We must move beyond exporting raw hydrocarbons and build an ecosystem that creates in-country value, strengthens GDP contribution, and delivers lasting benefits for all Nigerians,” he said.

Falade emphasised that the sector’s future depends on generating in-country value to drive economic growth, adding that Nigeria must develop an industry that is efficient, competitive, well-governed, and resilient, with tangible benefits for citizens.

Regional Ambition and Africa’s 600 TCF Opportunity

At the continental level, Nigeria’s gas ambitions are being mirrored by broader discussions around Africa’s vast but underutilised energy resources. The Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, has called for stronger regional coordination to unlock Africa’s more than 600 tcf of proven gas reserves.

Speaking at a ministerial roundtable in Abuja recently, he stressed that the continent’s energy challenge is not resource scarcity but inadequate infrastructure, weak policy alignment, and fragmented gas markets.

He noted that over 600 million Africans still lack access to electricity despite abundant energy resources, adding that natural gas offers a practical pathway for industrialisation, power generation, and cleaner energy access.

Ekpo emphasised that regional integration through cross-border pipelines and harmonised regulatory frameworks will be essential if Africa is to fully realise its energy potential.

“While the continent holds over 600 trillion cubic feet of proven natural gas reserves, more than 600 million people still lack access to electricity, with millions relying on traditional fuels for cooking. This is not a question of resource availability, but one of coordination, infrastructure, and collective action,” Ekpo said.

The minister said Nigeria is pursuing its “Decade of Gas” agenda to position itself as a regional energy hub through strategic partnerships with other African countries.

He pointed to major cross-border gas infrastructure projects already underway as examples of the gains of regional collaboration. These include the West African Gas Pipeline, Trans-Sahara Gas Pipeline, Nigeria–Equatorial Guinea Gas Pipeline, and the Nigeria–Morocco Gas Pipeline.

Meanwhile, the intergovernmental agreement (IGA) for the proposed $25 billion Nigeria–Morocco gas pipeline is expected to be signed before the end of the year, according to Amina Benkhadra, head of National Office of Hydrocarbons and Mines (ONHYM) of Morocco, Reuters reports.

Also known as the African Atlantic Gas Pipeline, the initiative was first conceived about a decade ago. It will span approximately 6,900 kilometres, combining offshore and onshore routes, with a projected capacity of 30 billion cubic metres (bcm) of gas — approximately 1,059.3 bcf per annum.

The pipeline has the backing of the Economic Community of West African States and is expected to deliver around 15 bcm of gas to Morocco while also supporting exports to Europe.

Benkhadra disclosed that once the agreement is finalised, a transnational governing body will be set up in Nigeria. This authority will include ministerial representatives from the 13 participating countries to oversee political alignment and regulatory coordination.

She noted that both the feasibility study and the front-end engineering design (FEED) have already been completed, paving the way for the next phase of the project.

Ambitious 12 Bcf/d Target and Demand Expansion

Nigeria’s domestic ambition is equally aggressive. According to Ed Ubong, Coordinating Director of the Decade of Gas Secretariat, national gas production is projected to rise from about 7.5 bcf/d in 2025 to 12 bcf/d by 2030.

He said this growth will be driven by improved collaboration across government institutions, regulators, and private investors, as well as increased investment in demand creation projects. Ubong revealed that more than 215 gas demand projects are currently being tracked, covering power generation, industrial supply, and clean cooking initiatives.

“We have seen gas production rise from about 6.8 billion cubic feet per day in 2023 to about 7.5 billion cubic feet per day in 2025. This progress is largely driven by stronger collaboration among government institutions, regulators, investors, and industry players,” Ubong said.

“We are deliberately asking a critical question across the ecosystem: what support is required to move projects forward and unlock value for Nigeria?”

He also noted that Nigeria aims to significantly increase LPG consumption to reduce reliance on biomass fuels, improve public health outcomes, and expand access to cleaner energy sources across households.

Deepwater Investments and Global Capital Return

On the investment front, deepwater oil and gas projects are also experiencing renewed momentum. President Bola Tinubu recently approved targeted fiscal incentives to accelerate Shell’s Bonga South West development and similar projects, with the aim of boosting production, job creation, and foreign exchange earnings.

“These incentives are not blanket concessions,” Tinubu said, according to a statement. “They are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition.”

Shell plc has continued to expand its Nigerian portfolio, following final investment decisions on the Bonga North project in 2024 and the HI gas project in 2025, which will supply 350 mmscf/d to Nigeria LNG. Senior executives including Wael Sawan and Zoë Yujnovich have consistently described Nigeria as a key component of Shell’s global integrated gas and deepwater strategy.

Similarly, the resolution of the long-standing OPL 245 dispute involving Eni has cleared the path for the Zabazaba–Etan deepwater project, which is expected to contribute up to 150,000 barrels per day and significant associated gas output once fully developed (about 200 million standard cubic feet of gas per day).

Speaking on the resolution, Special Adviser to the President on Energy, Olu Arowolo-Verheijen, stated that by resolving the OPL 245 dispute, the Nigerian government has removed one of the “most prominent legacy risks” in Nigeria’s upstream sector.

“The settlement also represents a significant improvement on the 2011 Resolution Agreement, reflecting the policy framework established under the Petroleum Industry Act (PIA) and the administration’s broader fiscal and governance reforms in the energy sector,” she said.

“The revised terms strike a balanced outcome providing investors with the clarity and predictability required to proceed with major deepwater investments, while ensuring stronger value accretion and safeguards for the Federation,” Verheijen added.

Domestic Gas Monetisation Gains Momentum

Indigenous gas development is also gaining traction through projects such as the ANOH Gas Project operated by Seplat Energy, which achieved first gas in January 2026. Initial production has stabilised at between 40 and 52 mmscf/d, with capacity expected to ramp up significantly as infrastructure is completed and additional offtake agreements are finalised.

According to the Chief Executive Officer of Seplat Energy, Roger Brown, ANOH is the first of the seven critical gas development projects identified by the Nigerian government to commence operations.

“It is an important strategic project for Seplat, our partner NGIC, and Nigeria as a whole. It has taken a significant amount of commitment and hard work to complete the project in a part of the onshore Niger Delta with limited gas pipeline infrastructure, and we are extremely proud of this achievement. This is our third major gas processing facility onshore and increases our Joint Venture gross gas processing capacity onshore to over 850 MMscfd,” he said in a statement.

The ANOH project forms part of a broader network of gas infrastructure commissioned in May 2024 by President Tinubu, including the AHL Gas Processing Plant 2 (GPP2) and the ANOH-OB3 CTMS Gas Pipeline.

The AHL facility, with a processing capacity of 200 mmscf/d, expands the existing Kwale Gas Processing Plant (GPP-1), which currently supplies about 130 mmscf/d to the domestic market. The upgraded facility is designed to process high-quality gas and transport lean gas through the OB3 pipeline, supporting growing industrial demand.

Developed by AHL Limited — a joint venture between NNPC Limited and SEEPCO — the project is expected to significantly boost gas availability for domestic consumption.

The ANOH-OB3 CTMS Gas Pipeline Project, which includes a 36-inch, 23.3-kilometre pipeline, will further enhance gas evacuation capacity. Combined, the ANOH infrastructure is projected to deliver up to 600 mmscf/d from two processing trains, each with a capacity of 300 mmscf/d, operated by AGPC and the SPDC joint venture.

Overall, these integrated projects are expected to increase domestic gas supply by approximately 500 mmscf/d, creating a more attractive investment climate while supporting long-term economic growth.

In parallel, the NUPRC advanced its gas commercialisation agenda in December 2025 by issuing permits to 28 companies under the Nigerian Gas Flare Commercialisation Programme (NGFCP). The initiative is designed to convert flare gas — previously treated as waste — into commercially viable resources, marking a shift toward environmental sustainability and economic value creation.

Among the beneficiaries are Ace Energy Limited, Afagaf Company Limited, AGH Lero, Almina Resources Limited, Amazon Energy Limited, AUT Energy, Beluga Asiko, Bodej Investment Limited, Cainergy Limited, Cimcmonobuo Nigeria Limited, Dawcon Consortium, Dawnwatch Limited, Fargab Limited, Folstaj International Limited, Geospectra Energy Limited, Izzi Project Limited, and MMLet Energy Limited. Others include MSN Consortium, Newgaz Integrated Services Limited, NG Lyon Construction Limited, Oaks Cluster Energy, Seal Energy Limited, Tecnis EPS International Limited, Teobell International, Terms Energies, Zipora Gas, and Stelog Gas Company Limited.

The permit awards mark a critical step in reducing gas flaring while supporting Nigeria’s broader net-zero ambitions.

Meanwhile, Nigeria LNG Limited announced in June last year that its $10 billion Train-7 gas project on Bonny Island, Rivers State, had reached 80 per cent completion. This marks an improvement from the 67 per cent progress recorded in June 2024.

The NLNG Train-7 Project is a major expansion of the company’s Bonny Island facilities, aimed at increasing Nigeria’s LNG production capacity by about 35 per cent — from 22 million tonnes per annum (mtpa) to 30 mtpa. The expansion includes the addition of a new liquefaction train and supporting utilities.

In addition, the Federal Government has partnered with Southfield Petroleum Limited to develop a 200 mmscf/d gas processing plant in Delta State, aimed at addressing persistent supply shortfalls and reducing reliance on imports.

Located in Iwherekan, Ughelli South Local Government Area, the Southfield Utorogu Gas Processing Plant is being developed in collaboration with the Nigerian Content Development and Monitoring Board. The facility is expected to boost gas supply for power generation, industrial use, and households, while deepening Nigeria’s gas value chain.

Upon completion, the plant will produce Liquefied Petroleum Gas (LPG), condensate, and autogas — key products that will enhance energy access and help curb dependence on imported fuels.

Outlook: Gas as Nigeria’s Economic Backbone

Taken together, these developments point to a structural shift in Nigeria’s upstream sector, where gas is increasingly becoming the centre of gravity for investment, policy direction, and production growth. With reserves now at 215 tcf and major projects advancing across both public and private operators, experts say Nigeria is positioning itself not only as a leading LNG exporter but also as a critical hub for regional energy integration.

The outlook suggests that if ongoing reforms under the PIA are sustained, and infrastructure constraints continue to ease, Nigeria could meet its ambitious 12 bscf/d production target by 2030.

More importantly, it could fully unlock the economic value of its vast gas resources, transforming them from dormant reserves into a powerful engine of industrialisation and national development.