Finance and Technology Key to Unlocking Nigeria’s Gas Potential
Energy industry stakeholders have identified finance and technology key to unlocking Nigeria gas potential, urging policymakers and investors to prioritise funding structures, infrastructure expansion, and digital innovation to accelerate domestic gas utilisation.
The Managing Director of Zamam Offshore Services Limited, Oluwole Asalu, made this call during a panel discussion at the recently concluded Lagos Energy Week. The session, which focused on sustainable energy development, explored how environmental, social and governance (ESG) principles could support responsible gas development in Nigeria.
Asalu stressed that despite Nigeria’s enormous gas reserves, the country continues to struggle with supply reliability due to inadequate infrastructure.
According to him, while demand for gas across industrial, power and household sectors remains strong, the major bottleneck lies in the country’s ability to transport and distribute gas efficiently.
“Demand for gas is not Nigeria’s problem. The key issue remains the infrastructure required to deliver gas reliably and at scale,” Asalu said.
He explained that the pipelines, processing plants and distribution networks required to expand gas utilisation are capital-intensive projects that often require support from large institutional investors and development finance institutions.
Industry analysts have repeatedly emphasised that finance and technology key to unlocking Nigeria gas potential will determine how quickly the country can transition from crude oil dependence to a gas-driven economy.
Infrastructure deficit slowing domestic gas growth
Nigeria holds one of the largest proven gas reserves globally, estimated at more than 210 trillion cubic feet, yet the country has struggled to maximise this advantage due to infrastructure deficits.
Experts say pipelines connecting gas fields to industrial hubs remain insufficient, while limited processing capacity also affects the stability of supply.
Asalu noted that many of the operational limitations experienced today are the result of legacy infrastructure that was never designed to support the current scale of domestic gas demand.
He said expanding infrastructure requires deliberate planning and sustained financing, especially as Nigeria seeks to increase gas utilisation in power generation, manufacturing and cooking fuel adoption.
“These infrastructures are not ordinary projects; they are large-scale social-impact assets that demand significant financial commitment from investors and government-backed institutions,” he said.
Energy stakeholders say addressing these gaps is central to ensuring finance and technology key to unlocking Nigeria gas potential translates into real economic outcomes.
Digital technology improving transparency
Beyond financing, industry leaders highlighted the importance of digital transformation across the gas value chain.
Asalu explained that modern digital systems could enhance transparency, improve operational monitoring and strengthen regulatory oversight within the sector.
“When the right digital systems are deployed, transparency improves significantly. Regulators can track operations more effectively and companies are able to demonstrate accountability in real time,” he said.
Experts believe that adopting digital tools for pipeline monitoring, asset management and emissions tracking will not only improve efficiency but also help Nigeria align with global ESG standards.
This technological advancement, stakeholders say, reinforces the argument that finance and technology key to unlocking Nigeria gas potential must go hand in hand.
Cost of capital remains major challenge
Also speaking during the panel session, the Managing Director of Axxela GMI, Frank Umole, pointed out that the biggest obstacle facing Nigeria’s gas sector is the high cost and structure of financing required to build midstream infrastructure.
He noted that Nigeria does not lack demand for gas, given its large population and growing industrial base.
Instead, the challenge lies in attracting long-term capital that matches the extended timelines required for infrastructure projects.
“We do not have a demand problem in Nigeria,” Umole said.
“With over 210 trillion cubic feet of gas reserves and a rapidly growing population, demand will continue to rise. The real issue is the cost of financing and the mismatch between investor expectations and infrastructure development timelines.”
According to him, resolving this financing gap will be critical to ensuring finance and technology key to unlocking Nigeria gas potential becomes a practical reality.
Talent development crucial for sector growth
In addition to financing and technology, industry experts also highlighted the importance of building local talent within Nigeria’s energy sector.
Asalu said there remains a noticeable skills gap in specialised areas of the industry, particularly among young engineers and technical professionals.
To address this challenge, he noted that Zamam Offshore Services Limited has initiated structured training programmes and partnerships aimed at developing the next generation of energy professionals.
“We have identified a persistent talent gap in the sector and we are deliberately investing in programmes that expose young engineers to practical industry experience,” he said.
Industry observers believe strengthening local expertise will enhance Nigeria’s capacity to manage complex gas infrastructure projects while reducing reliance on foreign technical support.
Gas expected to play major role in Nigeria’s energy transition
Nigeria has increasingly positioned natural gas as a bridge fuel in its energy transition strategy, particularly as global energy markets shift toward cleaner sources.
Government initiatives such as the “Decade of Gas” programme aim to expand domestic gas utilisation in transportation, manufacturing and electricity generation.
However, experts warn that without the right financial frameworks, technological innovation and infrastructure investment, the country may struggle to fully realise the benefits of its massive reserves.
For Nigeria to capitalise on this opportunity, stakeholders insist that finance and technology key to unlocking Nigeria gas potential must remain at the centre of policy and investment decisions.
