Three major subsidiaries of the Dangote Group have moved to strengthen long-term gas supply arrangements with units of the Nigerian National Petroleum Company Ltd, marking how central gas has become to Nigeria’s industrial and energy transition ambitions.
The agreements, disclosed at the launch of the Nigeria Gas Master Plan 2026 in Abuja on Friday, involve the Dangote Petroleum Refinery, Dangote Fertilizer Plant and Dangote Cement Plc. On the supply side are Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company, both subsidiaries of NNPC Ltd. While the exact volumes covered by the contracts were not made public, officials described the deals as critical to supporting Dangote’s expansion plans across refining, petrochemicals, fertilizer production, and cement manufacturing.
The move comes when Nigeria is seeking to reposition natural gas as the backbone of its industrialization drive, while also using it as a transition fuel in the shift away from heavier, more polluting hydrocarbons. The Dangote–NNPC agreements sit squarely within that policy direction, linking the country’s largest industrial conglomerate with its national oil company at a moment when government rhetoric is shifting from ambition to delivery.
Speaking at the event, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo framed the Gas Master Plan 2026 as a turning point. He said the launch marked a move away from repeated policy articulation toward an execution-focused framework designed to translate Nigeria’s vast gas reserves into tangible economic outcomes.
Ekpo stressed that Nigeria’s challenge has never been the size of its gas endowment, but the ability to convert that potential into sustained industrial output, infrastructure development, and jobs. His remarks echoed a long-standing frustration within the sector: despite decades of gas discovery, domestic utilization has lagged due to weak infrastructure, inconsistent pricing frameworks, and limited offtake certainty.
NNPC Ltd Group Chief Executive Officer, Bashir Bayo Ojulari, placed the Dangote agreements within the broader objectives of the new plan. He said the Gas Master Plan is designed not only to meet, but to exceed, the presidential mandate of raising national gas production to 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030. Achieving those targets, he added, is expected to catalyze more than $60 billion in new investments across the oil and gas value chain by the end of the decade.
For Dangote Group, reliable gas supply is more than an energy issue; it is a core input for its business model. Gas powers the massive 650,000 barrels-per-day Dangote Refinery, feeds the fertilizer plant that has positioned Nigeria as a net exporter of urea, and supports cement production across multiple plants. Securing stronger contracts with NNPC units reduces exposure to supply disruptions, price volatility, and infrastructure bottlenecks, all of which have historically undermined large-scale industrial operations in Nigeria.
The agreements also highlight the strategic role of NNPC’s gas subsidiaries as the government attempts to build a more integrated domestic gas market. Nigerian Gas Marketing Limited plays a key role in commercializing gas supply, while NNPC Gas Infrastructure Company is central to pipeline development and network expansion. Their involvement suggests an effort to align supply, transportation, and industrial demand under a more coordinated framework.
The backdrop to these deals is the evolution of Nigeria’s gas policy itself. The Nigeria Gas Master Plan was first introduced in 2008 as a blueprint to stimulate domestic gas utilization and reduce the dominance of crude oil in the economy. Over time, however, shifting market dynamics, persistent infrastructure gaps, and regulatory uncertainty limited its impact. The passage of the Petroleum Industry Act and the launch of the Decade of Gas Initiative reshaped the sector’s operating environment, making a revised and more practical framework necessary.
Under the updated plan, national gas output is expected to rise from about 8 billion cubic feet per day currently to 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030. Officials say the focus is not only on production, but also on expanding processing facilities, pipelines, and distribution networks to ensure gas can be delivered reliably to industrial users such as Dangote.
Recent policy steps are meant to reinforce this push. In December 2025, Nigeria launched its first online gas trading, clearing, and settlement platform, designed to improve transparency, efficiency, and price discovery in the domestic gas market. Regulators argue that such mechanisms are essential if large contracts, including those signed by Dangote, are to contribute meaningfully to national supply growth rather than remain isolated bilateral arrangements.
Data from the Nigerian Upstream Petroleum Regulatory Commission show that total gas production in 2025 stood at about 2.71 trillion standard cubic feet, highlighting both progress and the scale of the challenge ahead. Moving from current output levels to the ambitious targets set in the Gas Master Plan will require sustained investment, policy consistency, and the resolution of long-standing infrastructure constraints.
In that sense, the Dangote–NNPC gas contracts are both symbolic and practical. They signal confidence from the country’s largest private industrial player in Nigeria’s gas agenda, while also testing whether the new emphasis on execution can finally close the gap between policy intent and industrial reality. If the agreements translate into steady supply, expanded capacity, and measurable economic spillovers, they could become a template for how gas is used to anchor Nigeria’s long-promised industrial transformation.
