Gas Firm Expands Medical Oxygen Capacity, Says Local Production Will Save Forex

Apex African Gas Nigeria Limited has expanded Nigeria’s medical oxygen production capacity with the commissioning of a new 70-tonnes-per-day Air Separation Unit in Lagos, saying increased local production will reduce the country’s dependence on imported industrial gases and save scarce foreign exchange.

The new facility raises the company’s combined production capacity to 110 tonnes per day, positioning it among Nigeria’s largest domestic producers of industrial and medical gases. The investment is expected to improve the supply of oxygen, nitrogen and argon to hospitals, manufacturers, food processors, construction firms, and the oil and gas industry.

Speaking at the inauguration, the Chairman of Apex African Gas, Chief Najimu Adeniji, said the plant was designed to strengthen local production while reducing the nation’s import bill.

“This plant does not just produce oxygen. We also produce nitrogen and argon, which are used in industries. Oxygen, we can change the configuration to produce more oxygen if we want or more nitrogen,” he said.

According to him, nitrogen remains a major product for the oil servicing industry, particularly in Port Harcourt and its environs.

“Our main customers for nitrogen are in the oil service industries in Port Harcourt and the environment. They represent also a significant part of our revenue. These are gases that would have been imported if we are not producing locally. So it saves us the foreign exchange costs that we are able to produce here,” Adeniji stated.

Despite the expansion, he identified unreliable electricity supply as a major challenge driving up production costs.

“If we can get a power supply from the national grid, the cost will be significantly cheaper. What we would like is for the government to provide cheaper power so that the cost of oxygen to the general public will be much lower than it is,” he said.

The General Manager of Apex African Gas, Charles Allam, said the company remained committed to ensuring affordable access to medical oxygen despite rising operating costs.

“While the major concern now is power, we are working closely with the government, especially with the Presidential Initiative for Unlocking the Healthcare Value Chain, to see how we can reduce power costs. But for now, we are trying our best,” Allam said.

He added that the company continues to support federal and other hospitals with oxygen at competitive prices, with some facilities receiving supplies free of charge.

“We are supporting all the medical hospitals and the federal hospitals with oxygen at the best rate and at the best cost. Some of them, as we mentioned during the ceremony, are free. There are challenges, but with God’s help, we will overcome them,” he said.

Allam disclosed that the project involved an investment of more than ₦10 billion, describing it as a strategic investment aimed at supporting healthcare delivery and industrial development across Nigeria.

“What we have done so far belongs to all Nigerians. It belongs to Nigeria, and it is for the benefit of all Nigerians. Together, we can make a big difference for this country,” he added.

Partners of the company also commended the investment, describing it as a major boost to healthcare delivery.

The Technical Director of FHI 360, Dr. Kenny Ewulum, said Apex African Gas had played a critical role in expanding access to liquid medical oxygen across the country.

“To need liquid oxygen in the country is one thing, but to have access is a big challenge. That’s where Apex Gases came to the rescue for the country to access liquid medical oxygen across Nigeria,” Ewulum said.

He noted that the company had continued supporting healthcare institutions since the COVID-19 pandemic by supplying oxygen free of charge to facilities including the Nigerian Navy Reference Hospital, Ojo.

Representing the National Coordinator of the Presidential Initiative for Unlocking the Healthcare Value Chain, Technical Adviser Eniitan Tejuoso described the new plant as a milestone for Nigeria’s healthcare and industrial sectors.

“Medical oxygen sits squarely at the intersection of these priorities. It is more than an industrial product; it is an essential medicine. Every investment that strengthens our ability to produce medical-grade oxygen locally strengthens the resilience of our health system and our capacity to save lives,” she said.

Tejuoso added that with the new 70-tonne-per-day air separation unit, Apex African Gas had established itself as the country’s leading producer of liquid oxygen, describing the achievement as significant for both Nigeria and the wider West African region.