KEY POINTS
- Shell warns that Nigeria risks losing industrial growth without clearer policies and faster investment in gas infrastructure.
- Rising energy costs continue to squeeze households and small businesses, as delays in gas delivery systems keep prices high.
- Shell says collaboration between government, international oil companies and local firms is essential to lower production costs and make gas a reliable, affordable energy source nationwide.
Nigeria needs to move beyond speeches and begin taking concrete steps to attract investment into its gas sector, Shell executives said in Lagos, warning that delays in infrastructure and inconsistent policies are already weighing on industries that rely on gas to keep their doors open.
Their comments came at the third Gas Investment Forum, where senior figures from Shell Energy Nigeria and Shell Nigeria Gas told participants that Nigeria has the resources to drive a gas-led industrial revival, but not yet the systems to make it work.
For many Nigerians, the issue is no longer abstract. Manufacturers have been struggling with higher diesel prices, unreliable grid power and soaring production costs. Households are paying more to cook and small businesses are increasingly squeezed as the country tries to balance its energy transition with an overstretched economy.
Shell says partnerships and stability are now critical
Markus Hector, general manager of Shell Energy Nigeria, said the sector will not achieve lift-off without stronger collaboration between international oil companies and local independents. Speaking through portfolio and regulation lead, Chuka Amos-Ejesi, he said foreign firms bring capital and global experience, while domestic players offer the flexibility needed to navigate Nigeria’s tough operating environment.
According to him, partnerships should not only target production but also build the country’s technical base in engineering, supply chains and operations, ensuring that Nigerians benefit beyond short-term projects.
Policy clarity, he warned, remains a sticking point. Investors want long-term certainty before committing the billions needed to turn Nigeria’s large gas reserves into affordable energy for homes and industries.
Infrastructure delays keep gas prices high for ordinary Nigerians
Ralph Gbobo, managing director of Shell Nigeria Gas, noted that the company is expanding its gas hubs in Port Harcourt, Aba, Ota and Yenagoa, with plans for more cities. But until infrastructure gaps are closed nationwide, industries will continue to pay more for the gas that should have been Nigeria’s cheapest source of energy.
Gbobo said gas infrastructure is the backbone of industrial growth and can drive down production costs, reduce emissions and support regional trade. But the lack of pipelines, processing facilities and last-mile delivery networks means many small and medium enterprises still depend on diesel generators which continue to inflate the cost of everything from bread to plastic containers.
He also stressed that consistent policies would make Nigeria more attractive to long-term capital, adding that effective collaboration between public and private sectors could help unlock the full economic benefits of gas.
The forum brought together policymakers, investors and operators to discuss opportunities across the gas value chain, from extraction to distribution. But the general consensus was clear: without stable rules and real investment in infrastructure, Nigeria risks missing out on a cheaper and cleaner energy source that could lower living costs and revive struggling industries.
