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#Electricity: Leveraging Gas to Power Nigeria

In order for any country to experience sustainable growth, there is an underlying need for consistent, affordable, and environmentally-friendly energy.
Electricity plays a fundamental role in the socio-economic progress and development of every nation.
It facilitates the provision of basic amenities, essential health care, food, communication and transport.
It is also responsible for powering industries; from manufacturing to mining to agriculture to e-commerce to real estate and much more.
The Nigerian energy industry is arguably one of the most inefficient in meeting the energy needs of its consumers.
The persisting energy crises has weakened the progress of industrialization, hindered development, and contributed negatively to the quality of life in a country where majority of the populace live on less than $2 a day.
According to the Gas exporting countries forum, Nigeria has proven reserves of well over 5 trillion m³, the largest proven gas reserves in Africa.
With gas reserves far greater than our oil reserves, gas not only has the potential to power Nigeria for the next 50+ years, it also offers a comparably cheaper and cleaner way of generating energy.
Nigeria has reportedly flared more gas than any other country in the world despite the fact that the benefits of gas go beyond the socio-economic.
Gas discoveries in Nigeria have, for the most part, been incidental oil exploration and production activities.
As a result, despite the associated environmental hazards of gas flaring, experts say Nigeria used to flare about 1.2 billion cubic feet of gas a day (bcf/d), which could fuel about 7000MW of efficient thermal electric power, over 1,400 agro-processing facilities, 350 textile plants, and 70 fertilizer plants with a plethora of opportunities to create over one million jobs.
This amount of gas flared represents 12.5 percent of all globally flared gas. Between January and September 2014, Nigeria lost about $1billion as oil companies operating in the country flared a large proportion of the gas produced. This figure has now reduced by almost 50%, due to a realisation of the value of gas.
IOCs such as Shell recently announced they will focus their future investments in Nigeria on gas. Indigenous companies have also increased their own focus on the gas industry. For example, the indigenous oil and gas firm, Seplat Petroleum Development Company has invested $300m in the gas business.
The company also expanded its gas processing facility in Oben, Edo State to boost power generation in the region.
Oando PLC is another example. Their mid-stream subsidiary has begun the expansion of the Trans Amadi gas pipeline located in Port Harcourt, as well as a further extensive build-out of its vast Lagos gas grid to connect off-takers located on the Ijora-Marina-Bonny Camp axis.
The company has earmarked its approach as part of a long-term strategy to drive gas production and supply in every industrial centre in Nigeria. Oando has also announced plans to invest $36 million, in the construction of three gas-compression plants in the country within the next year.
A final example can be found in Seven Energy who recently secured a $495 million loan from a consortium of Nigerian and international lenders to help fund its spending to supply gas to the domestic market.
Seven has already invested $1 billion in related projects in the southeast gas fields along with the related infrastructure and pipelines so it can sell gas into the domestic market for use in power generation and industrial consumption.
These projects are all timely especially considering that domestic gas demand is projected to reach 5 billion cubic feet daily in the next two years.
The International Energy Agency (IEA) forecasts overall power generation in Africa to increase its current level of 17% to above 25% by 2040, further spurring an economy such as Nigeria’s, which is projected to grow to $4.2-trillion by 2040 and take its place as the world’s 4th largest economy.
This clearly outlines the trajectory of the global energy industry.
Undoubtedly, the transformation of Nigeria’s power sector is key in order to drive economic growth.
The power privatisation process, and the simultaneous process of divestment by major IOCs from gas rich, onshore Nigeria Delta assets heralded a period of investment in gas processing and distribution infrastructure that is vital to the long term success of the power industry, but much work remains to be done.
It is imperative that the government commits to accelerating and finishing the work that has been started in this area.
In certain areas, incentives, concessions, and enabling policies are still required. Institutions such as the World Bank have recognised this; its Partial Risk Guarantee Scheme in Nigeria is the largest such scheme in the world.
To provide the guarantees many investors are seeking, there has to be a regulatory process to enhance the creditworthiness of gas off-takers, along with the bankability and enforceability of domestic supply contracts as well as the gas price regime.
The benefits, if a viable framework is implemented, are exponential and indisputable. It is a simple fact that improving power generation and supply will have a considerable impact on our annual economic growth.
At a time when the Naira has devalued significantly and our overreliance on imported petroleum products has driven the currency even further down, import substitution is vital to power plants and industries to drive inclusive economic growth.
It is very clear that Nigeria’s energy requirements are very high while supply remains inadequate, insecure, and irregular.
Nonetheless, there is a firm belief in the future of the Nigerian gas industry and its potential to have a positive and tangible impact on energy provision, the economy and quality of life of every Nigerian.
Dawn Dimowo is a consultant with africapractice providing political and business intelligence, analysis and communications support to local and international clients in different industries including extractives, agriculture, ICT and finance. She worked formerly at the office of Legal Affairs of INTERPOL in Lyon and more recently with a government agency in Abuja. Dawn is a qualified lawyer and speaks English and French fluently
News
New Horizons Invests N50m to Empower Almajiris with Skills

New Horizons Nigeria has launched a N50 million initiative aimed at transforming 21 Almajiri children into skilled computer technicians within 90 days, to tackle youth unemployment and harness human potential.

The Almajiri-to-Tech programme, officially launched in Abuja on Monday, provides participants with full training, meals, clothing, tools, and logistics support, all fully funded.
Speaking at the launch, the Chief Executive Officer of New Horizons, Tim Akano, said the programme represents a new journey in the history of Nigeria by restoring the original purpose of the Almajiri system, which he described as “children sent out to seek knowledge.”
“The word Almajiri comes from an Arabic term meaning emigrant and seeker of knowledge. Historically, children were sent to learn morals, responsibility, and skills to add value to society,” Akano said.
He added that the disruption of this system during colonial times forced many children onto the streets, a challenge that persists today.
Akano highlighted the urgency of addressing the Almajiri issue, noting that there are an estimated 15 million Almajiris in the country, with a population growth rate of around three per cent annually.
“If we do not solve this problem as a country, we are sitting on a time bomb,” he warned.
According to him, the programme focuses on hands-on technical skills rather than theory. Trainees will learn to repair mobile phones, laptops, televisions, radios, standing fans, and other electronic devices, as well as build inverter batteries using recycled electronic waste.
“We are not teaching theory. We are teaching practical skills you can use to earn a living,” Akano said, stressing that the programme will not interfere with the participants’ Quranic education.
“We are still going to allow you, within the period of learning. Your learning computer here is not stopping your Quranic education.
“You still have time within our space here. Whenever you want to go and pray, you can pray, then come back to class,” the CEO stressed.
He added that participants will also receive daily meals, water, T-shirts identifying them as technicians-in-training, and access to all necessary tools and equipment throughout the 90-day programme.
Akano said the initiative is part of a larger mission by New Horizons Nigeria, which has spent the past 21 years training about 100,000 Nigerians annually in IT and related skills.
He said the new programme aims to “take human genius off the streets and convert it into human capital, enabling these youths to contribute meaningfully to the economy.”
He added that equipping Almajiris with skills could add 15 million people to Nigeria’s workforce and potentially increase the country’s GDP by as much as $20 billion, stressing that productivity depends on practical skills and opportunity.
“Everything that can be taught can be learned. If someone can memorize the Quran cover to cover, there is nothing that cannot be done. What they lack is information, opportunity, and infrastructure, and we are providing all of that,” Akano said.
Akano also stressed that the initiative is designed to inspire other organizations and government agencies to replicate similar programmes across the country.
“This is not just about 21 children; it is about showing Nigeria what is possible when resources meet intention and planning.
“If we succeed in empowering these Almajiris, we demonstrate that the country can turn social challenges into economic opportunities. It’s a blueprint for Nigeria’s future,” he said, noting that the initiative combines social reform, technical education, and economic empowerment.
Also speaking, one of the trainees, Fatima Umar, appreciated the organisers and promised to maximise the opportunity.
“We’ll make you proud of us. We have nothing to say here but to thank and appreciate you. May Almighty Allah continue to guide and protect you,” Umar said.
News
IMF Upgrades Nigeria’s 2026 Growth Projection to 4.4%

International Monetary Fund has upgraded Nigeria’s 2026 economic growth projection to 4.4 per cent, reflecting improved macroeconomic stability and sustained reforms.

IMF
The January 2026 World Economic Outlook Update forecasts Nigeria’s growth trajectory at 4.1 per cent in 2024, 4.2 per cent in 2025, and 4.4 per cent in 2026—a 0.2 percentage point increase from the October 2025 estimate.
This aligns with sub-Saharan Africa’s projected 4.6 per cent expansion in 2026 and 2027, driven by regional stabilisation efforts.
Globally, the IMF anticipates 3.3 per cent growth amid resilient conditions tempered by trade policy shifts and technology investments. For Nigeria, declining energy prices—expected to fall seven per cent due to weak demand—pose risks, though OPEC+ coordination and China’s stockpiling provide support.
Despite the optimism, downside risks persist from Middle East and Ukraine tensions, protectionism, high debt, and fiscal deficits. The Fund recommends rebuilding fiscal buffers, ensuring central bank independence, and limiting temporary fiscal measures to maintain stability.
Nigeria’s success hinges on consistent reforms and resilience against domestic and global shocks, the IMF concluded.
News
Nigeria’s Crude Output Falls to 1.486mbpd in November – OPEC

Organisation of Petroleum Exporting Countries (OPEC) reports that Nigeria’s crude oil production, excluding condensate, dropped by 0.7 per cent to 1.486 million barrels per day (mbpd) in November 2025 from 1.496 mbpd in October.

OPEC
The figure, drawn from secondary sources in OPEC’s December 2025 Monthly Oil Market Report, fell short of Nigeria’s 1.5 mbpd quota. Direct communication data showed output at 1.436 mbpd, up from October’s 1.401 mbpd, but still below target.
Nigeria produces around 196,028 bpd of condensate, excluded from quota calculations per Nigerian Upstream Petroleum Regulatory Commission figures. Year-on-year, November’s output marked a slight gain over 1.417 mbpd in November 2024.
Expert Cites Insecurity, Governance Gaps
Petroleum economics expert Wumi Iledare described the quota miss as unsurprising, blaming persistent insecurity, an ageing oil basin lacking new finds, and unoffered hydrocarbon blocks. Governance shortcomings and policy uncertainty further erode investor confidence, he noted.
Selective implementation of the Petroleum Industry Act worsens the situation, with Nigeria needing a single authoritative leader for the sector rather than multiple proxies, Mr Iledare stressed. The country has struggled to consistently hit OPEC targets for years.
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