Akwa Ibom To Become Top Gas Destination As NNPC Invests $3.5bn

Indications have emerged that Akwa Ibom State would soon become a top gas-based industrial destination.

This followed the signing of a landmark Memorandum of Understanding (MoU) by the administration of Governor Umo Eno  and the Aggregator Company of Nigeria (GACN), which triggered a $3.5 billion Final Investment Decision (FID) by the Nigerian National Petroleum Company Limited (NNPCL).

Represented by his deputy, Senator Akon Eyakenyi, the governor who led the state’s delegation to the ongoing South-South Gas Utilisation Forum (GUF) at the Ibom  Hotel and Golf Resort, Uyo, the state capital, described the MoU and the investment portfolio as “a strategic leap toward energy-led prosperity.”

The governor commended President Bola Tinubu, for his unwavering commitment to gas development in Nigeria, and expressed appreciation to the minister of State for Petroleum Resources (Gas), Obongemem Ekperikpe Ekpo, along with the industry leaders, stakeholders, and participants, for their dedication in translating the president’s vision into action.

He expressed optimism that the summit would renew their collective resolve to harness gas for industrialisation, domestic energy use, economic growth, and inclusive development.

“Akwa Ibom is committed to creating an enabling environment for investment, ensuring adherence to environmental standards, and delivering tangible benefits to our host communities,” the governor assured.

Also speaking at the event, Minister Ekpo, praised Eno’s leadership style, describing the summit as a milestone in Akwa Ibom’s journey toward becoming an energy and industrial powerhouse.

“This is more than a meeting—it is a declaration of intent and a roadmap to gas-based prosperity,” Minister Ekpo said. “Governor Eno’s vision aligns perfectly with President Bola Tinubu’s Gas to Prosperity – Renewed Hope Agenda (RHA).”

The minister noted that although the South-South remains the heart of Nigeria’s gas production, the region must now evolve from a resource base to a centre of value addition, innovation, and inclusive growth, and emphasised the need to develop industries such as petrochemicals, fertilizers, modular refineries, and Compressed Natural Gas (CNG)-powered transport systems.

Underscoring the importance of inclusive development, the minister highlighted the provisions of the Petroleum Industry Act (PIA) 2021—particularly the establishment of the Host Communities Development Trust (HCDT), which mandates oil and gas companies to contribute three percent of their annual operational expenditure toward the development of host communities in education, healthcare, infrastructure, and economic empowerment.

“This is in line with our call for communities to be co-owners, not just spectators, in the energy development process,” he explained.

Providing details on the investment, NNPC’s executive vice president (Gas), Mr. Olalekan Ogunleye, stated that the $3.5 billion commitment will support the development of vital gas infrastructure projects.

These include an inter-county gas pipeline, offshore-to-land gas delivery systems, a methanol plant, a fertilizer plant, and a floating Liquefied Natural Gas (LNG) facility.

The MoU signed between the Akwa Ibom State government represented by the Secretary to the State Government, (SSG), Prince Enobong Uwah and the  Attorney General and commissioner for Justice, Uko Udom SAN, and the GACN, it was gathered, aimed at “establishing a strategic framework to promote the state as a natural gas development and industrial investment destination.”

“It also provides for the development of a robust Akwa Ibom State Gas Master Plan (AKS-GMP), with a focus on data mapping, infrastructure planning, and demand forecasting.

“In addition, the MoU commits both parties to promoting domestic gas-based industries through transparent and commercially viable access to gas supply. It also supports the development of virtual pipeline solutions—such as Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and LNG—for both industrial and domestic use.

“The agreement  further aligns with national goals on energy transition and decarbonization under the federal government’s decades of gas initiative and climate change agenda,” the document stated.