Gas Utilisation Still Less Than 50% Capacity Despite Growing Infrastructure – NMDPRA

Nigeria has large natural gas reserves and growing demand from power plants, businesses and industries.

But July 2026 data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shows that much of the country’s gas-processing capacity remains unused.

Nigeria supplied an average of 4.723 billion cubic feet of gas per day in July.

Of this, 2.695 billion cubic feet per day went to Nigeria LNG, while 2.028 billion cubic feet per day supplied the domestic market.

Domestic gas was used by power plants, commercial businesses and gas-based industries.

Power generation received 0.534 billion cubic feet per day. Commercial users received 0.507 billion cubic feet, while gas-based industries received 0.552 billion cubic feet.

However, major gas-processing facilities operated at only 49.21 per cent of their capacity.

The facilities processed an average of about 7.966 billion standard cubic feet of gas per day.

This means Nigeria does not only need to produce more gas. It must also make better use of the infrastructure already available to process and transport it.

Several major projects are intended to improve gas supply across the country. They include the Ajaokuta-Kaduna-Kano pipeline, OB3 River Niger Crossing, Odidi-Warri Expansion Project, Escravos-Odidi Pipeline and ELPS Midline Compressor Project.

These projects are important because gas must be moved from production sites to power plants, factories, businesses and export terminals.

Gas reserves have limited value if the fuel cannot be processed and delivered to users.

The government is also considering measures to increase domestic gas supply and reduce costs. These include proposed domestic crude and gas swap arrangements and stronger enforcement of supply obligations.

Nigeria has abundant gas, but many homes and businesses still face unreliable electricity and energy supplies.

The July figures show that the main challenge is not simply finding more gas. It is completing infrastructure, ensuring reliable supply, setting workable prices and connecting producers with consumers.

Nigeria’s priority should therefore be to use more effectively the gas and infrastructure it already has.