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Home Energy

Seplat Energy positions natural gas as Nigeria’s engine of economic growth

by Onome Amuge
October 8, 2025
in Energy
Seplat Energy positions natural gas as Nigeria’s engine of economic growth

Onome Amuge

Seplat Energy Plc is intensifying its investment in Nigeria’s domestic gas market, positioning natural gas as the central pillar for the country’s economic growth and industrial transformation. The company’s renewed push aligns with its strategic vision to expand gas processing capacity, diversify into cleaner fuels such as LPG and CNG, and help Nigeria unlock the full potential of its vast natural gas reserves.

Speaking at the 2025 Africa Energy Week (AEW) in Cape Town, South Africa, Okechukwu Mba, Seplat Energy’s director of new energy, said the company views domestic gas as the engine of prosperity for Nigeria and Africa, powering industries, homes, and transportation while providing a cleaner alternative to biomass and diesel. 

During a panel titled “Beyond Exports: Developing Commercially Viable Domestic Gas Markets,” Mba said Nigeria’s ambition to expand power supply and industrial activity will remain constrained unless structural challenges within the gas-to-power value chain are addressed. He identified liquidity issues in the power sector and inadequate transmission and distribution infrastructure as key bottlenecks that must be resolved to create a bankable, self-sustaining energy ecosystem.

“Bankable anchor customers are needed to underpin the development of new gas projects. To achieve growth in the domestic gas market, we must have a commercially viable power sector that guarantees consistent offtake and ensures investors recover value,” Mba said. 

Seplat Energy currently supplies gas to five power stations across Nigeria, reinforcing its pivotal role in the nation’s energy transition and electrification efforts. With the anticipated completion of the ANOH gas processing plant before the end of the year, Seplat expects a boost in its capacity to supply the domestic market. The plant is designed to process 300 million standard cubic feet per day (MMscfd), contributing to the company’s long-term goal of producing over 1 billion cubic feet per day (Bcf/d) of gas by 2030.

In addition to pipeline gas, Seplat is expanding its footprint in the liquefied petroleum gas (LPG) and compressed natural gas (CNG) segments. The company already supplies butane from its NGL plant at the Bonny River Terminal and plans to begin LPG deliveries from its Sapele and ANOH gas plants by year-end. The move will position Seplat among Nigeria’s leading domestic LPG suppliers, helping displace biomass and kerosene for cooking while improving health outcomes and reducing carbon emissions.

Seplat’s investment in CNG aims to extend access to gas for industrial and commercial users not connected to the national pipeline grid, a segment of the market that has remained largely untapped due to infrastructure limitations. By developing a distributed gas supply model, the company hopes to reach manufacturers and small enterprises seeking cheaper and cleaner energy alternatives to diesel.

Mba also welcomed recent fiscal incentives introduced by the Nigerian government to stimulate growth in the gas sector, describing them as a catalyst for accelerating investment and meeting the country’s energy transition goals. He said the incentives would encourage private developers to expand infrastructure and production capacity in support of Nigeria’s Decade of Gas initiative.

Beyond its commercial agenda, Seplat Energy continues to emphasise sustainability and responsible operations as central to its strategy. At the same conference, Chioma Afe, the company’s director of external affairs and social performance, stressed that environmental, social, and governance (ESG) principles remain embedded in Seplat’s operations. Speaking on a panel titled “Bureaucracy or Bridge? Tailoring Global ESG Approaches for African Realities,” she argued that Africa must define its own path to sustainable development, one that reflects its unique socio-economic and cultural contexts.

“For a truly successful and impactful ESG implementation, we must move away from a ‘one-size-fits-all’ model to frameworks that are co-created locally. Our goal is to ensure ESG becomes a bridge for value creation across industries and countries, not a bureaucratic exercise,” Afe said. 

She added that Seplat’s community engagement model prioritises identifying and closing development gaps through partnerships that align with local needs in education, healthcare, and economic empowerment. This approach, she said, has allowed Seplat to implement sustainability programmes that deliver tangible benefits and long-term trust with host communities.

Onome Amuge

Onome Amuge serves as online editor of Business A.M, bringing over a decade of journalism experience as a content writer and business news reporter specialising in analytical and engaging reporting. You can reach him via Facebook ,X and  LinkedIn

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