Natural gas infrastructure in Nigeria
Business News

Nigeria’s Gas Exports Outpace Domestic Sales Despite Abundant Reserves

Nigeria has vast natural gas reserves, yet the country is exporting more gas than it sells to its own market. Between 2022 and 2025, Nigeria exported about 3.83 trillion cubic feet (Tcf) of gas, while only 2.69 Tcf was sold domestically. This trend has continued into 2026, with exports outpacing domestic sales by a significant margin.

Despite having over 200 trillion cubic feet of proven gas reserves, Nigeria faces ongoing challenges in ensuring reliable gas supplies for local industries and households. Stakeholders are concerned that the country’s energy needs are not being met, especially as shortages impact electricity generation and manufacturing.

For nearly two decades, various policies have aimed to boost the domestic gas market, including the National Gas Policy and the Petroleum Industry Act. However, industry experts point out that these efforts have not effectively translated into reliable supplies for consumers. Issues such as inadequate infrastructure, high costs, and security problems continue to hinder progress.

Maxi Colman Obasi, the National President of the Oil and Gas Services Providers Association of Nigeria, highlighted that gas shortages are driving up costs for businesses, forcing them to rely on more expensive energy sources like diesel. This situation is not only affecting production but also leading to higher prices for goods and services.

Moreover, Nigeria has been importing liquefied petroleum gas (LPG) despite its own gas resources. Reports indicate that the country imported nearly 1.94 million metric tonnes of cooking gas over the past three years, showcasing a disconnect between available resources and actual supply to local consumers.

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Experts suggest that Nigeria needs a comprehensive strategy to improve domestic gas supply while maintaining its export capabilities. This includes investing in infrastructure and creating a competitive market that attracts local supply. They argue that addressing these issues is crucial for the country’s economic growth and energy security.

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