Nigeria’s Dangote Group has strengthened gas supply agreements with units of the state-owned Nigerian National Petroleum Corporation (NNPC) to support its ongoing refinery and industrial expansion projects, officials said on Monday.
The new contracts involve three Dangote subsidiaries: Dangote Petroleum Refinery, Dangote Fertiliser Plant, and Dangote Cement Plc. The agreements were signed with Nigerian Gas Marketing Limited (NGML) and NNPC Gas Infrastructure Company (NGIC) during the launch of Nigeria’s Gas Master Plan 2026 in Abuja. The companies did not disclose the specific volumes of gas contracted.
The deals align with Nigeria’s broader efforts to leverage its abundant gas resources for industrial growth, cleaner energy adoption, and economic development. The Gas Master Plan, unveiled on Friday, seeks to expand gas infrastructure, improve supply reliability, attract domestic and foreign investment, and position gas as a central driver of national industrialisation.
Under the plan, Nigeria aims to increase national gas output to 10 billion cubic feet per day (bcf/d) by 2027 from around 8 bcf/d currently, with a longer-term target of 12 bcf/d by 2030. Authorities estimate that the programme could attract more than US$60 billion in investment across the gas value chain, covering production, processing, transport, and industrial utilisation.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the initiative represents a shift from policy formulation to execution. “The challenge for Nigeria is not the lack of gas reserves, but converting those reserves into reliable supply and tangible economic value,” he said during the master plan launch.
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NNPC Ltd Group Chief Executive Officer Bashir Bayo Ojulari added that the Gas Master Plan aims to optimise gas costs, enhance national production, attract fresh investment, and strengthen supply chains for industrial users, including power plants, refineries, and manufacturing operations. “The plan will ensure that Nigeria’s gas sector becomes a foundation for sustainable industrialisation and cleaner energy,” he said.
Dangote Group’s renewed contracts underscore the company’s strategy to secure stable feedstock for its industrial projects. The Ibeju-Lekki refinery, which began operations in 2023, has rapidly expanded Nigeria’s refining capacity and is central to the company’s integrated energy and industrial strategy. Access to reliable gas supplies is critical for refinery operations, fertiliser production, and cement manufacturing, enabling Dangote to reduce dependency on imported fuels and boost domestic output.
Industry analysts said the agreements signal growing collaboration between private industrial players and state energy agencies. “Securing gas supply is a critical step for large-scale industrial expansion in Nigeria,” said Adewale Ogunleye, an energy sector consultant. “It provides predictability for operations and underpins investment confidence.”
Nigeria’s gas sector has historically struggled with inadequate infrastructure, pipeline bottlenecks, and underutilised reserves. The government has sought to address these challenges by introducing reforms, encouraging private sector participation, and linking industrial growth to energy security. The Gas Master Plan 2026 is intended as a blueprint to accelerate these efforts, targeting industrial clusters, power generation, and export-oriented projects.
The Dangote-NNPC agreements come amid broader national initiatives to foster cleaner energy and reduce reliance on liquid fuels. By integrating gas into industrial operations, Nigeria aims to achieve environmental benefits while enhancing competitiveness and creating employment opportunities across energy-intensive sectors.
As the Ibeju-Lekki refinery and other Dangote facilities expand, sustained gas supply from NNPC units will be crucial to meeting operational targets, stabilising domestic fuel markets, and supporting Nigeria’s long-term economic growth. Observers expect that the combination of public-private collaboration and infrastructure investment could serve as a model for similar initiatives across West Africa, strengthening the region’s industrial base.
