A renewed push to unlock Nigeria’s abundant domestic gas reserves is gaining momentum as industry leaders call for accelerated financing structures, large-scale infrastructure investment and deeper technology integration to reposition gas as a driver of industrial growth and energy transition.
Oluwole Asalu, managing director of Zamam Offshore Services Limited, made the case for a coordinated reform agenda during a panel session at Lagos Energy Week held recently. The session, themed “Advancing Domestic Gas Utilisation: An ESG Framework for Emission Reduction,” convened operators, financiers and policymakers to examine how sustainability principles can enhance responsible gas development.
With proven reserves estimated at over 210 trillion cubic feet, Nigeria ranks among Africa’s largest gas holders. Yet inadequate midstream and downstream infrastructure, including pipelines, compression stations and processing facilities, continues to limit optimal utilisation.
Asalu described these assets as capital-intensive, long-gestation investments that require patient funding and institutional participation.
“These infrastructures are social-impact assets that typically require the biggest funders to step in,” he noted, adding that legacy infrastructure constraints still shape operational bottlenecks across the value chain.
Asalu positioned financing reform as the decisive lever for accelerating gas development, particularly within an environmental, social and governance (ESG) framework increasingly demanded by global capital markets.
“Finance has to be the starting point. Whoever provides capital will demand standards, metrics and governance. Increasingly, access to funding is tied directly to ESG alignment,” he said.
Sustainability-linked financing structures, blended finance mechanisms and development finance participation, he suggested, could help de-risk projects while embedding accountability and emissions discipline into project design.
Beyond physical infrastructure and funding, Asalu underscored the importance of digitalisation in strengthening operational efficiency and regulatory oversight.
“When the right systems are deployed, transparency improves, regulators gain clarity, and accountability becomes easier for everyone,” he said.
Asalu further highlighted a persistent skills deficit within the energy ecosystem, stressing the need for structured talent development to sustain long-term growth.
“We have identified a persistent talent gap in the industry, and we are taking deliberate steps to address it through structured exposure and partnerships that deepen the competencies of young engineers,” he said.
Bridging technical capability gaps, he argued, is essential as the sector adopts more sophisticated technologies and stricter compliance standards.
Industry analysts say the absence of sufficient gathering systems and transmission networks has created recurrent supply shortfalls, affecting power generation, industrial feedstock supply and domestic distribution.
Frank Umole, managing director of Axxela GMI, reinforced this view, arguing that financing architecture, rather than market appetite, is the principal barrier to scale.
“We do not have a demand problem. We have over 210 trillion cubic feet of gas reserves and a young population that will continue to drive consumption. The problem is the cost of financing and the mismatch between infrastructure timelines and investor expectations,” Umole said.
According to him, infrastructure payback cycles often extend beyond the risk tolerance of conventional investors, creating a structural funding gap.
With global energy markets shifting toward lower-carbon pathways, domestic gas is widely viewed as a transition fuel capable of displacing more carbon-intensive alternatives, provided infrastructure and regulatory frameworks are aligned.
