Gas Distributors Strengthen Value Chain As FG Decries 30% Market Utilisation

Gas distribution chain in Nigeria is broadening through an Industry-wide synergy and cooperation to promote ongoing gas commercialisation initiatives of the government.

This is as the federal government decries poor domestic gas utilisation.

This sentiment was echoed by the special adviser on Energy to the President, Mrs Olu Arowolo Verheijen, who highlighted the critical gap in domestic gas utilisation, noting that, only 30 per cent of Nigeria’s produced gas currently serves the local market.

The ongoing collaboration is being promoted by the Association of Local Distributors of Gas (ALDG) which marked a significant milestone towards accelerating activities in the downstream natural gas distribution value chain.

The association, in line with its set objectives, successfully hosted its inaugural Business Forum in Abuja which brought together key stakeholders from Nigeria’s gas distribution sector.

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At the forum, the stakeholders called for a deeper collaboration to unlock Nigeria’s gas capabilities. They reiterated the need for the industry to prioritise partnerships to collectively focus on enhancing infrastructure, improving the regulatory environment, and promoting commercially viable developments.

The event centred on the theme ‘Strengthening Nigeria’s Gas Distribution Value Chain: Challenges, Innovations, and the Path Forward.’

Chairman of ALDG and managing director of Axxela Gas Distribution, Kehinde Alabi, emphasised the urgent need to unlock Nigeria’s gas potential through infrastructure development, regulatory clarity, and market-driven pricing.
The question is no longer if gas matters, but how we unlock its full potential, he said.

The minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, represented at the event by his technical adviser (Downstream) Dr Abel Igheghe, strongly reaffirmed the government’s commitment to gas development. He praised local distributors’ contributions to job creation and energy access while pledging continued policy support.

Verheijen spoke on the critical gap in domestic gas utilisation and called 9n stakeholders to strengthen ties and push for an enhanced utilisation across the country.

The Authority chief executive officer(CEO) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr. Farouk Ahmed was represented by the executive director, Ogbugo Ukoha, emphasised the regulator’s role in ensuring reliable gas supply, efficient infrastructure, and competitive pricing to drive industrialisation and energy security.

Ahmed Aluko, deputy chairman of the House Committee on Gas, further reinforced legislative support and assured continued policy advancement to attract investments.

Industry associations, including the Nigerian Gas Association, Nigerian Liquefied and Compressed Gases Association, and Virtual Gas Infrastructure Association of Nigeria, united in their call for value chain collaboration to achieve scale and sustainability. Director of the Decade of Gas Initiative, Ed Ubong, commended ALDG’s rapid institutional growth and the progress made in gas infrastructure development.

The ALDG executive secretary, Oga Adejo-Ogiri, underscored the forum’s central message of collaboration across government, industry, and society. This inaugural event establishes a strong foundation for ongoing dialogue and action to strengthen Nigeria’s domestic gas distribution network, positioning natural gas as a driver of economic growth and energy transition.