Nigeria has taken another major step toward expanding gas utilization and strengthening energy security with the signing of a $3.5 billion Memorandum of Understanding (MoU) involving state-owned oil company NNPC Ltd, the Gas Aggregator Company of Nigeria (GACN), and the Akwa Ibom State Government.
The agreement was formalized during the opening session of recently concluded South-South Gas Utilisation Forum 2025, held in Uyo, the Akwa Ibom State capital.
It was signed by GACN Managing Director Chijioke Uzoho and Secretary to the State Government Enobong Uwah.
The high-level event attracted dignitaries, including the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, and representatives from the governments of Akwa Ibom, Cross River, and Rivers States, highlighting regional collaboration on Nigeria’s gas industrialization drive.
Speaking at the opening session, Ekpo reiterated the federal government’s commitment to leveraging Nigeria’s vast gas resources for sustainable development, especially in the South-South, which holds some of the country’s most abundant oil and gas reserves.
NNPC Ltd was represented by Executive Vice President, Upstream, and GACN Board Chairman, Udy Ntia, along with Executive Vice President, Gas, Power, and New Energy, Olalekan Ogunleye
Why this matters
Akwa Ibom is one of Nigeria’s largest oil and gas-producing states and hosts Seplat Energy’s operational base, the country’s leading indigenous energy company.
Seplat currently reveals it supplies 30% of Nigeria’s domestic gas demand, supporting national industrial growth.
Following its acquisition of ExxonMobil’s onshore assets, Seplat’s gas production surged from 10 billion cubic feet (Bcf) in Q4 2024 to 14.9 Bcf in Q1 2025.
It is also completing a $420 million gas facility in Imo State, which could inject up to 300 million cubic feet of gas daily into the national market.
Additionally, Accugas (a subsidiary ofSavannah Energy) is another key gas supplier in Akwa Ibom.
Accugas currently supports over 20% of Nigeria’s thermal power capacity, serving major power plants like the 560MW Calabar NIPP and the 150MW Ibom Power Plant, which is owned by the Akwa Ibom State Government.
With this MoU, the capacity of existing gas infrastructure in Akwa Ibom is expected to rise significantly.
State Commissioner for Economic Development, Emem Almond Bob, who represented the governor on the second day of the event, pledged the state’s commitment to gas-led development, describing the agreement as “a strategic leap toward energy-led prosperity.”
“Akwa Ibom is committed to creating an enabling environment for investment, ensuring adherence to environmental standards, and delivering tangible benefits to our host communities,” Bob added.
