KEY POINTS
- Shell says Nigeria can drive industrial growth by strengthening gas regulations, pricing systems and infrastructure.
- Experts say clustering industries and expanding pipelines will make gas distribution easier and more attractive to investors.
- Nigeria still imports significant volumes of cooking gas despite holding some of the largest gas reserves in Africa.
Nigeria can unlock large scale industrial growth through its vast natural gas reserves if it fixes long standing problems around regulation, pricing and infrastructure, a senior Shell executive has said.
Ralph Gbobo, managing director of Shell Nigeria Gas, said the country already holds the resources needed to power factories and industries.
What remains is building the right environment that can attract sustained investment and guarantee reliable supply.
Speaking at Energy Week organised by the Lagos section of the Society of Petroleum Engineers in Lagos, the Shell MD said Nigeria must focus on consistent regulatory enforcement, fair gas pricing and stronger infrastructure systems if it hopes to build a gas powered industrial economy.
Nigeria holds one of the largest proven gas reserves in Africa. Despite this advantage, industries across the country still struggle with unstable energy supply and high energy costs.
Stable policies key to attracting investors
Gbobo told industry stakeholders that investors are willing to support Nigeria’s gas sector but they need confidence that policies will be implemented consistently and transparently.
According to him, the country must ensure what he described as stable, fast and transparent implementation of regulatory rules. Such stability would reduce uncertainty and encourage long term investments in gas pipelines, distribution networks and industrial energy supply.
He also stressed the need for a pricing system that encourages companies to develop pipeline gas infrastructure while still keeping energy affordable for industries.
Fair pricing incentives, he said, can unlock more capital for pipeline projects and increase domestic gas supply.
Infrastructure development remains another critical challenge for Nigeria’s gas sector.
Gbobo said existing gas transportation systems must become more reliable, especially the Escravos Lagos Pipeline System, one of the country’s most important gas supply routes to industries in the southwest.
Improving service standards and completing ongoing infrastructure projects would strengthen confidence in the gas market and reduce supply disruptions.
