lExports grow as coking gas shortages persist
Stakeholders blame poor policy alignments, seek overhauls
By Udeme Akpan, Energy Editor
Despite more than 200 trillion cubic feet (Tcf) of proven natural gas reserves and nearly two decades of multiple policies aimed at making gas the foundation of Nigeria’s industrial economy, the country continues to export more gas than it sells to the domestic market.
Data from the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, obtained by Financial Vanguard, showed that Nigeria exported 3.83 Tcf of gas between 2022 and 2025, compared with 2.69 Tcf sold domestically, representing a difference of about 1.15 Tcf, or 43 per cent, in favour of exports.
The trend continued in the first eight months of 2026, when the country exported 733.8 billion cubic feet (Bcf), compared with 516.8 Bcf sold domestically.
Cumulatively, Nigeria exported about 4.56 Tcf between 2022 and August 2026, compared with approximately 3.21 Tcf sold domestically, leaving exports about 42 per cent higher than domestic supplies.
The figures have renewed concerns over Nigeria’s ability to translate its huge gas reserves into reliable domestic energy for industries, commercial concerns and households, particularly as shortages continue to affect electricity generation, manufacturing, fertiliser production and other gas-dependent industries as well as homes.
The paradox is further highlighted by Nigeria’s continued reliance on imported liquefied petroleum gas, LPG, commonly known as cooking gas, despite its abundant natural gas resources.
Policy trajectories, wobbles
Behind the paradox is a record of 18 years policy run including the National Gas Policy, Petroleum Industry Act, PIA, Domestic Gas Delivery Obligation, DGDO, Decade of Gas Initiative, gas infrastructure projects and the proposed Gas Swap Framework.
However, industry stakeholders said the fundamental challenge remains the conversion of gas reserves and production into reliable, affordable and commercially viable supplies for domestic consumers.
According to them, the problem is increasingly linked to inadequate processing and transportation infrastructure, pricing, payment security, pipeline vandalism and insufficient investment across the gas value chain.
Speaking to Financial Vanguard, the National President, Oil and Gas Services Providers Association of Nigeria, OGSPAN, Maxi Colman Obasi, said inadequate gas supply was undermining power generation, increasing business costs and constraining industrial growth.
“Gas shortages reduce the availability of gas-fired power plants, contributing to lower electricity generation and unreliable supply. Manufacturers and other businesses are forced to rely more on diesel and other alternative energy sources, increasing operating and production costs,” he said.
Obasi said the resulting increase in energy and production costs ultimately fed into the prices of goods and services, while inadequate gas supply could force fertiliser, petrochemical and other manufacturing plants to operate below capacity.
“Despite Nigeria’s large gas reserves, inadequate domestic supply means the country is not fully converting its resources into economic growth, jobs and industrial development,” Obasi said.
He added that limited gas availability was constraining the development of power, CNG, LPG, fertiliser, petrochemical and other gas-based industries capable of supporting economic diversification.
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