The Federal Government has reaffirmed its commitment to transitioning Nigeria into a gas-powered Economy with the commissioning of the Otakikpo Liquefied Petroleum Gas (LPG) extraction plant and a 20-megawatt power project in Rivers State. Speaking at the event in Andoni Local Government Area, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, highlighted the country’s vast gas reserves, positioning Nigeria as the largest holder of Natural Gas in Africa. He emphasised that the initiative aligns with the administration’s economic agenda and the Decade of Gas initiative launched in 2021 to promote domestic gas utilisation and economic development.
Moreover, the minister commended the joint venture behind the project, Green Energy International Limited and its partner, Lekoil Oil and Gas Investment Limited, for their role in advancing Nigeria’s energy sector. He noted that the creation of the Ministry of Petroleum Resources (Gas) under President Bola Tinubu underscores a strategic focus on maximising the country’s natural gas resources. Ekpo further assured continued government support for investments that align with Nigeria’s broader energy transition goals, particularly those that reduce Gas Flaring while creating economic value.
Community support is key to long-term success.
Chairman of Green Energy International Limited, Professor Anthony Adegbulugbe, stated that the $60 million investment in the twin projects demonstrates the company’s commitment to Nigeria’s energy transformation. He explained that the initiative is part of the World Bank’s Gas Flares Reduction Programme, designed to monetise associated gas rather than waste it through flaring. He also expressed gratitude to the host communities for their cooperation, urging them to maintain a peaceful environment to sustain development efforts.
Furthermore, the chairman of the Ikuru Town Host Community Development Trust Fund, Professor Lysias Gilbert, described the projects as a welcome development for local communities. He noted that while the venture is a major investment for the companies involved, it also has the potential to drive socio-economic growth in the region. He expressed optimism that it would create jobs, improve living conditions, and expand access to Electricity and gas resources. However, he stressed the need for all stakeholders to remain committed to ensuring that the benefits reach the wider community.
Harnessing gas will drive sustainable growth.
Beyond its economic impact, the Otakikpo project reflects Nigeria’s push to harness its gas resources for sustainable development. With increasing global concerns over carbon Emissions and energy security, initiatives like this could position Nigeria as a leader in Africa’s energy transition. Reducing gas flaring aligns with international climate goals while generating new Revenue streams. Investing in gas-powered projects could also help reduce reliance on expensive fuel imports, making energy more affordable for households and industries.
However, achieving long-term success will require a stable investment climate and Infrastructure expansion to support broader gas distribution. While this project marks progress, industry experts highlight the need for clear government policies that encourage Private Sector participation and innovation. Regulatory uncertainties and weak infrastructure have long hindered Nigeria’s gas sector, making investment risky. Expanding Pipeline networks and improving storage facilities would help ensure a steady supply and maximise the sector’s potential.
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Ultimately, the commissioning of the plant also raises concerns about balancing domestic energy needs with Export ambitions. Gas exports remain a key revenue source, but boosting local consumption could help address Nigeria’s power deficit and strengthen its industrial growth. Affordable and stable energy is crucial for economic development, and increasing domestic gas supply could lower production costs for businesses. Ensuring long-term success will require policies that prioritise local industries while maintaining a competitive export market.