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Nigeria’s Gas Dream in Trouble as Debt, Pricing, and Policy Confusion Pile Up

Nigeria wants to grow its economy and meet net-zero targets using its 200 trillion cubic feet of gas. But that dream is under threat.

Debt is rising. Gas pricing makes no business sense. And policies keep changing like harmattan winds.

At the Oriental News Nigeria 2025 Conference in Lagos, key players in the energy sector warned that the gas sector is losing balance.

“We supply gas, but for nearly two years now, no payment has come in,” said Chichi Emenike, Acting MD of Neconde Energy Ltd. “We borrowed money to produce this gas. How do we pay back?”

A Dollarised Industry With No Dollar Returns

Everything about gas—from drilling to technology—is paid for in US dollars.

“There’s no local substitute. All our inputs are imported,” Emenike said. “It costs more to drill a gas well than an oil well. Handling gas is more sophisticated.”

She added that over 500 million standard cubic feet of gas are now running through the NGIC pipeline daily. “Just multiply that by one dollar, and you’ll see the money we’re talking about,” she said.

Gas operators, she warned, are bleeding. Without a practical, realistic national gas plan, Nigeria may not meet its energy targets.

*“Let market forces play. Stop creating monopolies. We need clear direction,” she urged.

Subsidies, Shortfalls, and Legacy Debts

Professor Barth Nnaji, Chairman of Geometric Power, added to the concern. He said GenCos are barely surviving under the current pricing system.

Right now, domestic gas is capped at $2.13 per MMBtu, yet open market prices can range from $2.70 to $9 per MMBtu depending on supply levels.

This gap has left the power sector hanging by a thread.

In just six months of 2025, Nigeria recorded a ₦1.1 trillion subsidy shortfall. The total debt owed to GenCos has crossed ₦5.2 trillion, according to Nnaji.

He warned that if the government does not act fast, the situation could collapse the power sector—and stall the entire gas value chain.

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