KEY POINTS
- The $26bn Nigeria-Morocco gas pipeline is gaining momentum after ECOWAS signed a regional intergovernmental agreement.
- Financing and Nigeria’s ability to supply enough gas while meeting domestic and existing export demand remain major challenges.
- The project’s biggest potential benefit is not just gas exports but stronger power supply, industrialisation and trade across Africa.
The proposed Nigeria-Morocco gas pipeline is moving closer to becoming a major piece of Africa’s energy infrastructure, following a regional agreement that could pave the way for construction of the ambitious project.
Estimated at about $26 billion, the African Atlantic Gas Pipeline is expected to run roughly 6,800 kilometres along Africa’s Atlantic coast, carrying up to 30 billion cubic metres of natural gas annually. Beyond transporting Nigerian gas, the project could strengthen electricity supply, support industrialisation and boost trade across several African countries.
However, its success will depend on more than completing the pipeline. Financing, reliable gas supply from Nigeria, political stability and the development of industries around the pipeline will determine whether it delivers the wider economic benefits being promised.
The project, which has been under discussion for nearly a decade, received a major boost on July 19 when ECOWAS leaders signed an intergovernmental agreement for the African Atlantic Gas Pipeline.
The agreement provides a broader legal and institutional framework for the project, transforming it from a largely bilateral initiative between Nigeria and Morocco into a major regional infrastructure project.
Morocco has also begun discussions with the US Export-Import Bank and the World Bank over possible financing, signalling that efforts are shifting from political commitments towards securing the funding required to move the project forward.
The pipeline is being developed by Nigeria’s NNPC Limited and Morocco’s National Office of Hydrocarbons and Mines, ONHYM.
NNPC Group Chief Executive Officer Bayo Ojulari said the ECOWAS agreement provides the “sovereign foundation” needed to move the project from a long-standing vision towards implementation.
$26bn project could strengthen Africa’s energy network
The proposed pipeline would eventually connect Morocco to the existing Maghreb-Europe Gas Pipeline and the wider European gas network.
For Nigeria, it offers another potential route to monetise its huge natural gas reserves. For countries along the pipeline corridor, it could provide additional gas for power generation, manufacturing and other industries.
But the project’s importance extends beyond the movement of gas.
Africa’s total trade was estimated at about $1.4 trillion in 2025, with intra-African trade accounting for only around 18 per cent. The continent has established the African Continental Free Trade Area to expand cross-border commerce, but inadequate infrastructure continues to limit its benefits.
Reliable energy is one of the biggest constraints facing African businesses. High energy costs and unreliable electricity can make manufacturing uncompetitive even before transport, customs and financing costs are considered.
The pipeline could help address part of that problem by providing a more reliable source of energy for businesses and industries along its route.
Despite the political progress, raising the estimated $26 billion required to build the pipeline remains a major hurdle.
Governments and project sponsors will need to create a financing structure capable of attracting development banks, commercial lenders and private investors.
Potential financiers will want assurances that the project can generate sufficient revenue to repay its costs. They will also need clarity over who will fund construction, who will purchase the gas and how agreements between the numerous countries along the route will be maintained.
The discussions with the World Bank and US EXIM Bank are therefore significant, but they do not amount to a final financing commitment.
The project will need to demonstrate that it is commercially viable before major construction funding can be secured.
Another major challenge is whether Nigeria can consistently supply enough gas for the pipeline while meeting domestic requirements and existing export commitments.
Nigeria possesses some of the world’s largest natural gas reserves, but reserves underground do not automatically translate into reliable supplies.
The country must increase production, expand gas processing capacity and improve the infrastructure needed to transport gas from producing fields to consumers.
At the same time, Nigeria is seeking to increase gas availability for electricity generation and industrial users at home.
This creates a delicate balance. The Nigeria-Morocco pipeline could open a major new export market, but insufficient production could leave the country competing between domestic consumers, existing export contracts and the new pipeline.
Projects such as the Ajaokuta-Kaduna-Kano pipeline and the Obiafu-Obrikom-Oben pipeline could help strengthen Nigeria’s internal gas network and improve the movement of gas to both domestic and export markets.
The key issue is therefore not simply how much gas Nigeria has in its reserves, but how much it can produce, process and transport reliably.
