Nigeria must address regulatory uncertainty, infrastructure deficits, and weak contract enforcement to unlock greater investment and gas supply to the domestic market, said James Makinde, the managing director of the ANOH Gas Processing Company (AGPC).

Speaking at the 2026 Business Forum of the Association of Local Distributors of Gas (ALDG) in Abuja, Makinde stated that Nigeria’s domestic gas market has evolved significantly and can now compete favourably with export destinations, provided investors are given the certainty needed to commit long-term capital.

The forum, themed “From Policy to Performance: Unlocking Demand, Industrialisation and Energy Security,” brought together stakeholders across the gas value chain to discuss challenges and opportunities in Nigeria’s push to deepen gas utilisation.

Makinde challenged the perception that gas producers are reluctant to supply the domestic market, arguing that commercial realities have changed. He noted that the domestic market now offers opportunities that can compete favourably with export markets, but investors require predictability.

His comments come as Nigeria seeks to leverage its vast gas reserves to drive industrialisation, improve electricity supply, and strengthen energy security under the Federal Government’s Decade of Gas initiative. Despite possessing more than 200 trillion cubic feet of proven gas reserves, the country struggles with inadequate domestic gas supply, infrastructure bottlenecks, and underinvestment.

Makinde identified regulatory unpredictability and frequent pricing changes as major obstacles to attracting new investments in gas development projects. Investors require visibility over future revenues before committing capital, particularly for projects with long development cycles.

“If investors cannot reasonably forecast revenues over a five- or ten-year period, it becomes difficult to secure financing. We need greater predictability in both regulation and pricing if we are to unlock more gas for the domestic market,” he said.

Beyond policy concerns, he noted that infrastructure gaps remain a significant constraint to growth. While commending ongoing projects like the Obiafu-Obrikom-Oben (OB3) gas pipeline, Makinde stressed the need for a more integrated approach to gathering, processing, and transporting gas.

He advocated for the establishment of centralised gas gathering and processing systems that would aggregate supplies from multiple fields and improve the commercial viability of stranded gas reserves. This would address situations where processing facilities are underutilised due to insufficient feedstock, while significant gas resources remain undeveloped due to prohibitive infrastructure costs.

Industry stakeholders have repeatedly cited inadequate pipeline infrastructure as a key reason why significant gas reserves remain untapped despite growing demand from power plants, industries, and households.

Makinde also called for stronger contract sanctity and greater commercial discipline across the sector, particularly in gas supply agreements linked to power generation. He noted that gas development projects are typically financed based on expected cash flows, making reliable counterparties and enforceable contracts critical to investment decisions.

Improving contract enforcement would significantly reduce commercial risks and enhance investor confidence across the industry. On the role of competing energy sources like coal, Makinde stated that competition should be viewed as a positive force that drives efficiency rather than a threat to the gas industry.

“I do not see coal as a challenge to our business. In fact, competition in the energy space is healthy. It pushes us to think more critically about pricing and market efficiency, especially down to the last mile,” he said. He added that a diversified energy mix can coexist within a well-regulated framework.

Makinde concluded that Nigeria’s domestic gas market is poised for significant growth if longstanding structural challenges are addressed. “If we collectively address these challenges, the market is ready for growth, and producers will be willing to commit even more gas volumes to the domestic market,” he said.