The Federal Government has unveiled a new gas production target of 12 billion standard cubic feet per day by 2030, with plans to expand domestic supply for electricity generation, manufacturing and other industrial activities.
Under the Gas Master Plan 2026, the government aims to increase daily output to 10 billion standard cubic feet by 2027 before reaching 12 billion standard cubic feet by 2030.
President Bola Tinubu announced the targets on Monday at the 20th anniversary of OTL Africa Downstream Energy Week in Lagos. He was represented by the Permanent Secretary of the Ministry of Petroleum Resources, Patience Ojekunle.
Tinubu said Nigeria’s proven gas reserves of more than 250 trillion cubic feet offered an opportunity to drive economic growth if investment increased in production, processing, transportation and distribution infrastructure.
He said the government intended to move beyond exporting raw energy resources to developing industries that use gas for power generation, petrochemicals, transportation and manufacturing.
The plan also prioritises expanded use of compressed natural gas and liquefied petroleum gas, alongside liquefied natural gas exports.
Tinubu said reforms under the Petroleum Industry Act were designed to improve transparency, commercial viability and investor confidence. However, he acknowledged that meeting the production targets would depend on addressing infrastructure gaps, financing needs and the challenge of connecting gas supplies to consumers.
Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Oritsemeyiwa Eyesan, also stressed the need to strengthen domestic hydrocarbon supply to support refining and industrial development.
She disclosed that Nigeria recorded average crude oil and condensate production of 1.717 million barrels per day in September 2026, representing a 2.34 per cent increase from August.
Crude oil production alone averaged 1.53 million barrels per day, marking the fifth consecutive month in which Nigeria met or exceeded its OPEC production quota, she said.
Eyesan attributed the increase to improved asset integrity, better security around evacuation infrastructure, collaboration with operators and efforts to restore shut-in production facilities.
She added that more than 127 million barrels of crude oil and condensate were delivered to Nigerian refineries between January and September 2026.
However, she said disagreements under the willing-buyer, willing-seller arrangement had initially affected deliveries to domestic refiners.
The commission was engaging producers and refiners to resolve disputes over pricing benchmarks, transportation costs and payment terms, while consultations continued on a proposed domestic crude swap framework.
According to Eyesan, the arrangement could enable refiners to obtain crude from the nearest suitable production or export point, potentially reducing transportation costs by $3 to $4 per barrel.
She said the NUPRC was also working with the Nigerian Midstream and Downstream Petroleum Regulatory Authority to align crude supply planning with refinery demand.
Chairman of the OTL Advisory Board, Otunba Adetunji Oyebanji, said Africa’s downstream petroleum industry had gradually shifted from import dependence and managed pricing towards local refining and regional trade.
He cited the expansion of large-scale private refining capacity in Nigeria as evidence of the sector’s changing structure but warned that infrastructure gaps, foreign exchange constraints and continued reliance on imports in some markets remained challenges.
Oyebanji also said geopolitical tensions, shipping risks and global supply chain disruptions had increased freight rates and cargo costs for downstream operators.
He urged industry stakeholders to develop solutions that balance environmental objectives with Africa’s industrial needs and consumers’ purchasing power.
Meanwhile, the Special Adviser to the President on Energy, Olu A. Verhijen, said government reforms had encouraged domestic refining, private investment and competition in the downstream market.
She disclosed that government efforts had helped mobilise more than $2bn in private investment in downstream gas over the past three years.
Verhijen identified affordable gas, regulatory certainty and regional integration as priorities for the next phase of the reforms.
She said expanding gas access would require infrastructure linking production centres to power plants, industries, households and transport operators. Predictable regulations and consistent enforcement were also necessary to attract long-term investment.
She added that the African Continental Free Trade Area offered opportunities for Nigeria to expand regional trade in refined petroleum products, gas and technical expertise.
Verhijen said the success of the reforms should be measured by their effects on employment, skills development, household welfare and business productivity.
“A secure energy system that leaves citizens behind is neither stable nor sustainable,” she said, calling for targeted measures to protect vulnerable households and support small businesses.
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