Category: News

NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company Limited (NNPC), is set to acquire a 5.2 million standard cubic feet per day Compressed Natural Gas (CNG) compression and refuelling facility from Gas Network Services Limited (GNSL).

This development, disclosed in a merger and acquisition notice issued by the Federal Competition and Consumer Protection Commission (FCCPC), marks a significant move towards expanding Nigeria’s CNG infrastructure and improving access to cleaner energy alternatives.

GNSL, the current operator of the facility, specializes in providing virtual pipeline solutions by compressing natural gas and delivering it to industrial and commercial customers via mobile tube trailers.

The facility also includes dispensing points for refuelling natural gas vehicles (NGVs), catering primarily to clients outside the reach of traditional pipeline networks.

A boost for the government’s CNG initiative
By acquiring the facility, NGML aims to bolster its role in the marketing and distribution of natural gas across Nigeria.

The transaction is expected to strengthen the CNG market by increasing infrastructure capacity, making CNG more accessible and affordable, particularly for the transport and commercial sectors.
The acquisition aligns closely with the objectives of the Presidential Compressed Natural Gas Initiative (P-CNG Initiative), launched in August 2023.

The Initiative was introduced to cushion the impact of fuel subsidy removal and reduce energy costs nationwide by promoting the adoption of CNG as a cleaner and cheaper alternative to traditional fuels.
NGML’s move is seen as a strategic step towards accelerating the rollout of CNG infrastructure across the country, supporting national efforts to foster a more sustainable and cost-effective energy landscape.
The FCCPC noted that the transaction could have a significant impact on the competitive dynamics of the CNG market, but ultimately promises to benefit consumers through expanded access to cleaner energy solutions.

What you should know
As part of government’s efforts to boost the country’s CNG capacity, the Presidential Compressed Natural Gas Initiative (P-CNGi) and LNG Arete Ltd. recently signed a pivotal Memorandum of Understanding (MoU) for a $27.3 million gas plant project aimed at expanding compressed natural gas (CNG) infrastructure across Northern Nigeria.

The is aimed at addressing the region’s long-standing energy challenges, particularly in the transportation and industrial sectors, which have struggled with limited access to reliable and affordable energy.

Recall that President Bola Tinubu established the P-CNGi in August 2023 to revolutionize the transportation landscape in the country, targeting over 11,500 new CNG-enabled vehicles and 55,000 CNG conversion kits for existing PMS-dependent vehicles.

The initiative is also expected to boost local manufacturing and assembly of conversion kits while creating jobs for the country’s populace.

A group known as Concerned Nigerians has alleged that there is a plot to disrupt crude oil supply to local refineries in Nigeria.

The group’s National Coordinator, Obinna Francis, made this known in a statement on Monday, alleging that they had uncovered a “sinister plot to stop the supply of crude oil to domestic refineries.”

The group acknowledged the contribution of local refineries to Nigeria’s economic growth under President Tinubu, stating that this progress requires vigilance against any “cabal” allegedly working with importers to deny local refineries access to crude oil.

Tinubu’s Oil and Gas Reforms Must Be Guarded Jealously
According to Francis, the success of domestic refineries in Nigeria has led to a reduction in fuel prices, which in turn has lowered the cost of food items.

He expressed shock that certain unnamed individuals were allegedly plotting to undo the gains achieved under President Bola Ahmed Tinubu’s economic reforms.
“Such a sinister plot can only be driven by a desire to return Nigeria to the era of petrol importation and even the reintroduction of subsidies.

“This is because cutting off crude oil supply to domestic refineries would create a shortage of refined products, forcing the country to resume fuel imports,” he stated.

He warned that such actions could undermine Nigeria’s collective economic well-being.
The group called on the President and the Department of State Services (DSS) to ensure that no one, knowingly or unknowingly, disrupts crude oil supply to local refineries, so that the economy is not destabilized.
“We salute Mr. President and pass a vote of confidence in him for his impact in driving Nigeria toward energy sustainability, especially in the oil industry. The sector has revived to a point where Nigerians no longer experience harrowing times at petrol stations,” he added.

He stressed that oil and gas reforms must be protected, ensuring that no group or individuals are allowed to undermine the achievements recorded in the sector.
What You Should Know
Nigeria is gradually becoming a petroleum refining hub in West Africa, thanks to the commissioning of the Dangote Refinery and other private and state-owned refineries.

However, private refineries continue to struggle to secure sufficient feedstock for their operations.
Nairametrics reported that the increasing refining capacity of the Dangote Refinery has helped Nigeria reduce its fuel imports.
Nigeria’s gasoline imports have dropped to their lowest level in almost eight years.
In addition to meeting domestic demand, the Dangote Refinery is also exporting refined petroleum products to other countries, including Ghana, Togo, Cameroon, South Africa, Angola, and several European nations.
The Nigerian National Petroleum Company Limited (NNPCL) recently denied reports that it imported over 200 million litres of Premium Motor Spirit (PMS), also known as petrol, in February 2025.

NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, clarified that while the company has not imported PMS in 2025, it retains the right to do so if necessary.

He emphasized that NNPCL has a responsibility to ensure energy security in the country and would intervene with imports if fuel shortages arise to stabilize the market.

The Transmission Company of Nigeria (TCN) has announced that the country’s power sector achieved a new peak generation of 5,713.6 megawatts (MW) on March 2, 2025, successfully transmitted across the national grid.

According to a statement issued by TCN’s management, this new peak surpasses the previous peak generation of 5,543.20MW recorded on February 14, 2025, by 170MW.

However, it remains 88MW lower than Nigeria’s all-time maximum peak generation of 5,801.60MW, achieved on March 1, 2021.

“This was recorded on Tuesday, March 2, 2025 at 21:30 hours, with the new generation peak of 5,713.6 megawatts (MW), surpassing the previous peak generation of 5,543.20MW achieved on February 14, 2025, by 170MW,” the management said in a statement on Tuesday.

Additionally, Nigeria’s electricity industry recorded its highest-ever daily energy transmission, reaching 125,542.06 megawatt-hours (MWh) on March 2, 2025. This surpasses the previous record of 125,159.48MWh, set on February 14, 2025, by 382.58MWh.

“Furthermore, a new record for the new daily energy ever attained in the history of the electricity industry in Nigeria was also set yesterday, with a total of 125,542.06 megawatts-hours (MWh). This surpasses previous record of 125,159.48 (MWh) achieved on February 14, 2025, by 382.58MWh,” in a statement signed by Management.

Implications for Nigeria’s Power Sector
The new milestone signals an improvement in power generation and transmission capabilities, reinforcing efforts to stabilize Nigeria’s electricity supply.

Analysts urge the government and stakeholders to implement policies that address these bottlenecks to ensure that increased generation translates to improved electricity access for homes and businesses.

More insights
Previously, reported last month that TCN announced a new peak generation of 5,543.20 megawatts (MW).

The General Manager of TCN, Ndidi Mbah noted that this new record surpasses the previous peak of 5,478.73MW.
Mbah further explained that the new Maximum Daily Energy of 125,159.48 megawatt-hours (MWH) is the highest ever recorded in the nation’s electricity industry, exceeding the previous record of 121,674.88MWH on February 7, 2025, by 3,484.60MWH.
She confirmed that TCN has successfully transmitted the new peak generation and maximum daily energy to the distribution companies’ load centers nationwide for onward distribution to customers.
On January 8, 2021, the Transmission Company of Nigeria (TCN) announced that it achieved a peak transmission of 5,552.80 MegaWatts (MW) as reported by Nairametrics.

Mbah noted that this achievement reflects growth in Nigeria’s electricity distribution, noting that TCN has a transmission potential of 8,100 MW.

TCN enhanced peak transmission at a frequency of 50.08Hz where Mbah confirms that the peak transmission surpasses the record set on 30 October 2020, which was 5,520.40MW.

Nigeria’s power prices need to rise by about two thirds for many customers to reflect the cost of supplying it and an increase can be expected within months, President Bola Tinubu’s special adviser on energy said.

Higher electricity tariffs, which need to be balanced by subsidies for less-affluent consumers, are required to fund the maintenance needed to improve reliability and to attract private investors into power generation and transmission, said the adviser, Olu Verheijen.

“One of the key challenges we’re looking to resolve over the next few months is transitioning to a cost-efficient but cost-reflective tariff,” Verheijen said in an interview in Dar es Salaam, Tanzania, this week. This is needed “so the sector generates revenue required to attract private capital, while also protecting the poor and vulnerable,” she said.

Tinubu has already taken a number of steps to ease the burden on state finances and encourage private investment since taking office in May 2023, including removing subsidies on motor fuel. Power prices were already tripled for some customers last year.

While Nigeria, a nation of about 237 million people, has an electricity access rate of around 62%, an erratic grid supply limits productivity and disrupts daily life.
The move to raise tariffs comes amid mounting pressure from Nigeria’s debt-burdened electricity distribution companies for tariffs to be cost-reflective so they can improve their finances.

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The country privatized generation and distribution in 2013, yet prices set by the government’s Nigeria Electricity Regulatory Commission don’t cover the suppliers’ costs. Government subsidies cover some of the difference, but profitability is hard to achieve.

Verheijen was in Tanzania attending a World Bank-backed conference where Nigeria presented a $32 billion plan to boost electricity connections by 2030. Private investors are expected to contribute $15.5 billion and the rest will come from public sources, including the World Bank and African Development Bank.

Nigeria’s power industry needs significant investment to achieve its development aims, Verheijen said. Of the country’s 14 gigawatts of installed power, only 8 gigawatts can be transmitted around the country and just four or five gigawatts can be directly delived to homes and businesses, she said.

Ahmed Usman Ododo, Kogi State governor, has said that the establishment of five Mini Liquefied Natural Gas (LNG) plants in Ajaokuta by the Federal Government through the Nigerian National Petroleum Company (NNPC) Limited and its private sector partners would strategically position Kogi as an energy hub in Nigeria.

Ododo expressed the optimism during the groundbreaking ceremony of the LNG plants in Ajaokuta where he emphasised that the project would play a pivotal role in enhancing Nigeria’s energy landscape, fostering economic growth, improving energy access, and reinforcing Kogi State’s significance in the country’s industrial development.

The governor equally described the LNG plants as a transformative investment that would not only position Kogi as an energy hub but also stimulate economic activities in the state.

He said: “We are witnessing a historic moment that will redefine Kogi’s place in Nigeria’s energy sector.

“This project is not just about gas production; it is about economic transformation, job creation, and ensuring that our state plays a central role in Nigeria’s energy future.”

He underscored the economic impact of the initiative, highlighting its potential for job creation, increased investment, and industrial growth, stressing that his administration’s commitment to developing a skilled workforce will find through expression in opportunities being created by new investment in the emerging energy sector , as he commends President Bola Tinubu for his dedication to Nigeria’s energy transition and for mobilizing NNPC Limited and its private sector partners including Prime LNG, NGML/GASNEXUS LNG, LNG Arete, Highland LNG, and BUA LNG to establish the LNG plants in Ajaokuta.

Read also: NNPCL unveils five LNG mini-plants to boost gas supply in Nigeria

He expressed the optimism that the LNG plants would become a crucial part of Kogi’s energy infrastructure, significantly reducing carbon emissions while advancing sustainable energy solutions in Kogi state and Nigeria.

He said: “With an initial combined production capacity of over 80 million cubic feet per day, these plants will serve as a key resource for both national and international energy markets.”

Ododo equally assured that his government remains committed to providing an enabling environment, sustaining peace and security, and attracting more investments to the state.

Earlier, Mele Kyari, Group chief executive officer of NNPC Limited, emphasised that the LNG plants were part of the Federal Government’s strategy to revolutionise the gas sector, positioning it as a key driver of economic prosperity, noting that the initiative was not just a symbolic event but a concrete step towards energy transformation, stressing that all necessary equipment are ready for immediate deployment with assurance that the project would be completed on schedule in partnership with relevant stakeholders.

Kyari equally commended Governor Ododo for mobilising support from host communities, recognising them as the first beneficiaries of the initiative.

The project, spearheaded by the Nigerian National Petroleum Company (NNPC) Limited in collaboration with private sector partners, aims to enhance domestic gas supply, drive industrialisation, and create employment opportunities.

The Minister of State for Petroleum Resources (Gas), Ekperikpo Ekpo credited President Tinubu’s executive order for fast-tracking the development of the LNG plants.

He emphasized that the project was a direct response to the federal government’s push to maximise Nigeria’s gas potential and support industrialisation efforts.

Shuaibu Abubakar Audu, minister for Steel Development, noted that the LNG initiative aligns with Tinubu’s Renewed Hope Agenda, which aims to create a $1 trillion economy by 2030.

Aliko Dangote, group chairman and founder of Dangote Group has disclosed that the newly built Dangote refinery located in Lagos, Nigeria would not have been possible without the African Export-Import Bank (Afreximbank), the International Finance Corporation (IFC), and Access Bank.

He also disclosed that he has paid interest and principal of about $2.4 billion out of the $5.5 billion borrowed to establish the refinery in Nigeria.

Dangote said this on Tuesday during a fireside chat with CNN on ‘Using Industrial Transformation to Build Bridges: The Global Africa Vision and Experience of the Dangote Group’, at the ongoing 2024 Afreximbank annual meetings, incorporating Africaribbean trade and investment forum, in Nassau, The Bahamas.

“We borrowed the money based on our balance sheet, we borrowed a total of $5.5 billion but we have paid a lot of interest as we go along because the project was delayed because of lack of land, also the sand filling. It took a long time, almost six years or so. We didn’t do anything for five years.

“It was actually in 2018 that we started. We borrowed that much, we have actually of course paid interest and some principal, of about $2.4 billion. So, we’ve done very well. We now have only about $2.7 billion left to be paid. So we’ve done very well for a project of that magnitude,” he said.

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“I think the luck that we had by getting the refinery done is because people believed that we were crazy, it will never happen. So I think the people who were sabotaging us were less concerned because they knew that these guys had entered into something that they were going to finish. They thought that we were going to fail. And I must thank a lot of our bankers for not panicking.

“The issue is that I must say, not because Benedict Oramah is here, but I can tell you, this refinery wouldn’t have been possible without Afreximbank. I think he’s one person who has so much belief in the refinery himself and then the other gentleman who is late now, Herbert Wigwe of Access Bank.

“Oramah is actually more convinced than some of my staff. Yes, he’s more convinced because when we took him there, both him and some of his board members, they became so much sort of convinced that this is the right way to go. And I must honestly tell you that, which I told you in the interview, even though I didn’t see that path. I said without the likes of Afreximbank, African Finance Corporation (IFC), it will be very difficult for us to industrialise,” Dangote said.

Narrating his experience in the refinery journey, he said, “I feel great but we really went through tough times, also including covid-19 time. So, during the setting up of the refinery, when we thought about building the refinery, we first of all did not have a clue of how huge this refinery is going to turn out to be. That is the reason we went into building the refinery. If we knew what we were really going to get into, we would not have started at all.”