INTRODUCTION

In our 2024 Mid-Year Report, we reviewed progress under Nigeria’s Decade of Gas policy, major investments, infrastructure development and divestments in the sector by oil majors, the Federal Government of Nigeria’s (FGN) efforts to boost investments through the 2023-2030 Drilling Campaign and Deep-Water Projects, and the funding sources driving these developments. We also highlighted trending industry events and projections for Nigeria’s gas sector. Globally, the United Nations has set ambitious climate goals, calling for a 45% reduction in carbon emissions by 2030 and net-zero emissions by 2050. For developing nations like Nigeria, which heavily rely on fossil fuels, balancing these goals with economic growth presents unique challenges. In response, Nigeria has cautiously committed to achieving net-zero carbon emissions by 2060 while declaring 2020-2030 as its Decade of Gas, reflecting the nation’s strategy to harness gas as a lower-carbon transition fuel. President Bola Ahmed Tinubu’s administration has reaffirmed this commitment, emphasizing gas as both Nigeria’s transition fuel and the energy source of the future. With proven crude oil reserves of 37.50 billion barrels, a daily production capacity of approximately 2.19 million barrels, and substantial gas reserves of 209.26 trillion cubic feet (TCF)—including 102.59 TCF of associated gas and 106.67 TCF of non-associated gas, Nigeria’s role as a global energy player remains significant. At the core of the Decade of Gas initiative is a vision to drive infrastructure development, industrial growth, and economic prosperity. Our Mid-Year Analysis revealed that gas demand continues to outpace supply, primarily driven by increasing domestic needs supported by improvements in the Domestic Gas Supply Obligation framework. According to the Nigerian Upstream Petroleum Regulatory Commission (“NUPRC”), gas demand is projected to grow at a compound annual rate of 16.6% through 2030. However, this growth underscores the risk of a looming supply shortfall of 3.1 billion cubic feet per day (Bcf/d) of gas under the Base Case Demand and Supply scenario. As we conclude 2024, this Report builds on earlier analysis, offering deeper insights into emerging opportunities, challenges, and investment projections for Nigeria’s gas sector. With gas positioned as a catalyst for economic growth and sustainable energy development, this Report aims to outline pathways to meet demand, attract investments, and align with global energy transitions.