• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Sectors Energy

Nigeria has adopted modular solutions to address its gas financing problems in the short term

Omono Okonkwo by Omono Okonkwo
March 23, 2023
in Energy, Sectors
Nigeria has adopted modular solutions to address gas financing problems in the short term
Share on FacebookShare on TwitterShare on Linkedin

Key highlights

  • This report highlights small and modular solutions as one-way African countries can still explore natural gas.
  • Nigeria has been identified as being able to use modular solutions to address the lack of proper gas infrastructure
  • African countries face huge gas financing gaps, and this hampers the industry on the continent.

Nigeria has adopted small, modular and flexible solutions to address gas financing problems, according to the Gas Africa report by the International Gas Union (IGU) and investment research agency, Hawilti.

The report also noted that gas-rich African countries are facing a financing problem. It highlighted that the lack of large and credit-worthy off-takers in Sub-Saharan Africa has hindered the development of the small-scale gas industry.

It further disclosed that while small-scale projects will not drastically transform Africa’s gas sector in the short term, they can be built with much fewer risks, provide a sandbox to demonstrate new business models, and eventually scale up as demand grows. So, this has made them very credible options to pre-develop domestic gas markets on the continent.

RelatedStories

The International Gas Union supports local adoption of natural gas in Nigeria, other African countries

The International Gas Union urges local adoption of natural gas in Nigeria, other African countries

March 22, 2023
NNPC, IJV model, JV

Niger Delta youths fight against alleged relocation of NGMC

May 6, 2019

Nigeria’s progress in the gas industry

The report said Nigeria has been able to adopt small solutions before proper infrastructure can be built. The report stated:

  • “The case of Nigeria notably illustrates how small, flexible, modular solutions can go a long way in pre-developing markets before proper infrastructure can be built. One of the country’s main challenges is bringing energy to its manufacturing hubs in the north when all its gas is produced hundreds of kilometers further south.
  • “In the absence of pipeline infrastructure, private investors started investing in small compressed natural gas (CNG) stations over a decade ago, allowing gas to be trucked across the country to factories and industries. The growth of these “virtual pipelines” has successfully pre-developed markets and unlocked enough gas demand to justify the development of the 614km Ajaokuta-Kaduna-Kano (AKK) pipeline that is now under construction.”

Nigeria has also been successful in attracting private capital into piped natural gas (PNG) projects within local industrial areas. This has been achieved through the private sector forming joint ventures with state governments or through franchise agreements with the state-owned Nigerian Gas Marketing Company (NGMC).

The report also highlighted the fact that some of these ventures were developed by Axxela, which has grown gas distribution ventures around small demand centers in Lagos and Port Harcourt and is now able to scale up operations.

Recall that in 2022, Japan’s Sojitz Corporation acquired a 25% interest in Axxela, demonstrating the success and scalability of its business model.

What you should know

The report noted that the bankability of the African gas-to-power industry has largely relied on such securities issued by the World Bank, giving assurance that bills would be paid to gas producers and power generation companies.

  • However, these same structures that have made projects bankable are not only becoming harder to secure from Development Finance Institutions (DFIs), but they are also increasingly being challenged by African governments as they are deemed too expensive for state utilities and bulk power purchasers whose balance sheets are weak.

Follow us for Breaking News and Market Intelligence.
Tags: International Gas Union (IGU)Nigerian Gas Marketing Company NGMC
Omono Okonkwo

Omono Okonkwo

Omono Okonkwo is an accomplished Mass Communicator, with a remarkable track record spanning over a decade across various dimensions of the field. Her proficiency encompasses Print, Digital, and Broadcast Journalism, Copywriting, Research and Writing, Podcasting, Public Speaking, as well as a comprehensive grasp of Energy Markets. Her engagement in energy market coverage commenced officially in 2016, as she assumed the role of a country correspondent (Nigeria) with Natural Gas World, a subsidiary of Minoils Media based in Vancouver, Canada. Since then, Omono Okonkwo has consistently demonstrated excellence and left an indelible mark on the ever-evolving energy sector.

Related Posts

The International Gas Union supports local adoption of natural gas in Nigeria, other African countries
Business

The International Gas Union urges local adoption of natural gas in Nigeria, other African countries

March 22, 2023
NNPC, IJV model, JV
Business News

Niger Delta youths fight against alleged relocation of NGMC

May 6, 2019
Next Post
Aviation unions tackle NCAA's Director of Human Resources over welfare of members

International Airlines adjust exchange rate to N551/$1

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank
Zenth Bank








DUNS

Recent News

  • Anambra Govt acquires land in Aguata, Orumba for new industrial city 
  • US-based Nigerian archaeologist Abidemi Babalola wins $300,000 Dan David Prize  
  • Inside Access Bank’s N180 billion claims against MTN 

Follow us on social media:

Recent News

UNDP partners with Anambra State to establish Innovation Makerspace 

Anambra Govt acquires land in Aguata, Orumba for new industrial city 

June 12, 2025
US-based Nigerian archaeologist Abidemi Babalola wins $300,000 Dan David Prize  

US-based Nigerian archaeologist Abidemi Babalola wins $300,000 Dan David Prize  

June 12, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics