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Nigerian National Petroleum Company NNPC pushes CNG investments as AKK nears completion

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The Nigerian National Petroleum Company Limited and other industry stakeholders have intensified efforts to attract investors ahead of the expected first gas delivery from the Ajaokuta–Gwagwalada segment of the AKK Gas Pipeline by July 2026.....TAP TO CONTINUE READING

The project, a critical component of the Ajaokuta–Kaduna–Kano pipeline network, is designed to boost domestic gas supply, support power generation, and stimulate industrial growth across northern Nigeria, with officials expressing confidence that its completion will unlock significant economic opportunities along the corridor.

This came as the national oil company called on investors to take advantage of emerging opportunities in compressed natural gas infrastructure, declaring that Nigeria has transitioned from an oil-focused economy to a gas-first nation in its drive for energy security and industrial growth.

The Executive Vice President, Gas, Power and New Energy of the Nigerian National Petroleum Company Limited, Olalekan Ogunleye, made the call in a statement on Friday following a stakeholders’ workshop on mini-LNG and L-CNG infrastructure in Abuja, where he was represented by Kachala Suleman.

The workshop, convened by Portland Gas Limited, focused on investment opportunities in a proposed mini-LNG and L-CNG station in Gwagwalada, Abuja, which stakeholders said would strengthen Nigeria’s gas commercialisation and transportation reform agenda.

In his address titled “Powering the Future: Leveraging CNG Infrastructure to Drive Nigeria’s Energy Transition and Sustainable Growth,” Ogunleye said the country’s long-standing oil dominance had given way to a strategic gas-led transition.

“For decades, Nigeria was described as an oil nation that happened to have some gas. That narrative has now been permanently retired,” he said. “As we advance the implementation of the NNPC Gas Master Plan and execute the national Decade of Gas agenda, Nigeria has become a gas-first nation, strategically, commercially, and operationally.”

He disclosed that the company had set measurable targets to scale gas output in line with national economic goals. “Our mandate is clear and measurable. We aim to increase national gas production to 10 billion cubic feet per day by 2027 and scale further to 12 billion cubic feet per day by 2030. These are not aspirational slogans. They are economic necessities for a country of over 230 million people seeking industrial revival, energy security, and global competitiveness,” he said.

According to him, Nigeria’s gas sector presents compelling opportunities for investors, citing proven reserves and growing domestic demand. “Nigeria holds over 210 trillion cubic feet of proven gas reserves, among the largest in Africa. Domestic supply has already surpassed 2 billion cubic feet per day, signalling readiness for industrial expansion,” Ogunleye stated.

He added that the CNG segment had witnessed rapid growth, with over $200m in private investment commitments and more than 300 conversion centres nationwide. “Our target is one million CNG vehicle conversions by 2027. Each conversion reduces fuel imports, preserves foreign exchange, lowers transport costs, and strengthens macroeconomic stability,” he said.

The NNPC official also backed Portland Gas Limited’s proposed Mini-LNG and L-CNG facility in Gwagwalada, Abuja, highlighting the project as a cornerstone of Nigeria’s gas-driven industrial growth and energy security strategy.

He noted that the Ajaokuta–Kaduna–Kano gas pipeline, particularly the Ajaokuta–Gwagwalada segment, expected to deliver first gas by July 2026, would transform energy supply in northern Nigeria, unlocking industrial demand, power generation, auto CNG, and mini-LNG expansion. NNPC will supply piped gas to Portland Gas’ Gwagwalada plant.

The Gwagwalada Mini-LNG and L-CNG project is now positioned as a strategic initiative to expand domestic gas infrastructure, strengthen industrial competitiveness, and support Nigeria’s long-term energy and economic goals.

“At the heart of our midstream transformation is the 614-kilometre AKK pipeline. The Ajaokuta–Gwagwalada segment is projected to be commissioned, with first gas expected by July 2026,” he said.

He noted that the project would link northern industrial hubs to gas supply, enabling competitive power generation, manufacturing expansion, auto-CNG growth, and job creation. “The countdown to July 2026 has begun. When the first valve opens, it will not simply release gas; it will release productivity, industrial growth, and economic renewal,” Ogunleye said.

He described Gwagwalada as a strategic logistics hub with strong demand from transport operators, manufacturers, agro-processing clusters, and real estate developers. “The mini-LNG and L-CNG station will fuel vehicles, power industry, reduce diesel dependence, and strengthen energy resilience. Positioned at the AKK Abuja take-off node, the project aligns strongly with market demand and investor appetite,” he added.

He disclosed that NNPC will supply piped natural gas to the facility, which will function as a “mother station” for mobile refuelling units and retail outlets. “This is infrastructure meeting real demand. With scalable deployment and reliable supply, early investors are positioned to shape the next decade of clean energy growth,” he said.

Ogunleye said natural gas would remain the anchor of Nigeria’s energy transition, as replacing diesel and petrol with LNG and CNG could reduce transport emissions by about 25 per cent while improving air quality. He added that Nigeria’s zero routine gas flaring mandate would capture wasted gas and channel it into productive use.

The Chairman of the Presidential Compressed Natural Gas Initiative, Ismaeel Ahmed, represented by Tosin Coker, said Nigeria was building a competitive gas economy that would reduce transport costs and stimulate local manufacturing.

“Nigeria is not merely transitioning energy systems; we are building a competitive gas economy. That shift requires more than policy pronouncements. It requires infrastructure, capital, partnerships, and execution,” he said.

He noted that CNG conversion centres and refuelling stations were expanding nationwide. “Policy must move beyond documents and become visible infrastructure, stations built, vehicles converted, jobs created, and costs reduced. Today, we are seeing that transformation unfold,” Ahmed said.

According to him, mini-LNG and L-CNG infrastructure would address availability, accessibility, and scalability challenges. “These systems allow gas to move beyond pipeline limitations and reach emerging demand centres. They enable fleet refuelling, support industrial clusters and unlock regional growth,” he added.

Ahmed said the government was strengthening regulatory coordination, safety frameworks, and certification processes to de-risk investments. “The message to investors is simple: Nigeria’s gas market is not speculative; it is strategic. Every station built generates employment. Every conversion centre develops new technical expertise. Every fleet converted improves cost efficiency and environmental performance,” he said.

In her remarks, the Chief Commercial Officer of Portland Gas, Michelle Ejiofor, said the project would bridge the gap between stranded gas and end users while lowering energy costs. “This is more than a project; it is a bridge between high energy costs and affordable alternatives, between environmental concerns and cleaner energy solutions,” she said.

She added that the workshop was aimed at unlocking partnerships among government, investors, regulators, and technology providers to accelerate decentralised gas infrastructure development.

Nigeria has intensified efforts to expand gas utilisation as part of its energy transition strategy, following the removal of petrol subsidies and rising fuel costs. The Federal Government has also promoted CNG adoption through incentives and fleet conversion programmes to reduce dependence on imported fuels.

Large-scale investments in pipelines, mini-LNG facilities, and virtual gas distribution networks are needed to reshape Nigeria’s energy landscape, improve industrial competitiveness, and strengthen macroeconomic stability.

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Federal Government of Nigeria Finally Commissions CNG Station to Boost Domestic Supply

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The Federal Government has commissioned an integrated Compressed Natural Gas, CNG, refueling station at Obafemi Awolowo University, Ile-Ife, Osun State, as part of efforts to strengthen domestic gas supply and promote cleaner energy alternatives.....TAP TO CONTINUE READING

Speaking at the inauguration, the Executive Director of the Midstream and Downstream Gas Infrastructure Fund, Oluwole Adama, described the move as a major step toward advancing Nigeria’s gas-powered energy transition.

He noted that the facility goes beyond being just a refueling station, adding that it reflects progress, collaboration, and commitment to expanding domestic gas utilization in line with national energy goals.

“This project represents more than the commissioning of a refueling station. It symbolizes progress, partnership, and purpose in advancing Nigeria’s energy transition, promoting cleaner fuels, and deepening domestic gas utilization in line with national energy objectives,” Adama stated.

On his part, the Vice-Chancellor of Obafemi Awolowo University, Prof. Adebayo Simeon Bamire, praised the initiative, saying the facility will serve both the university community and residents of the surrounding area.

He added that the project would create opportunities for research, hands-on learning, and innovation in alternative energy solutions.

DAILY POST gathered that the federal government-backed initiative forms part of broader efforts to drive renewable energy adoption and support Nigeria’s transition to cleaner fuel sources.

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BREAKING NEWS: MTN Nigeria invests N1trillion on fibre rollout, network upgrade

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MTN Nigeria said it invested N1tn in 2025 to expand fibre infrastructure, roll out additional base stations and strengthen network capacity nationwide, as the country’s biggest telco returned to profitability after a choking financial year marked by foreign exchange pressures and negative equity.....TAP TO CONTINUE READING

The capital expenditure, more than double the prior year’s spending, formed part of a broader recovery that saw the company post a profit after tax of N1.1tn for the year ended December 31, 2025. The rebound followed a difficult 2024 in which MTN suspended dividend payments and grappled with balance sheet strain.

Chief Executive Officer Dr Karl Toriola described 2025 as a defining year for the company, linking the improved earnings position to renewed long-term infrastructure investment.

“During the year, we invested N1tn in network expansion and modernisation, more than double the prior year’s capital expenditure. This investment translates to additional base stations, deeper fibre rollout, expanded capacity and improved network resilience across the country because sustaining critical digital infrastructure requires disciplined capital allocation and a deliberate long-term approach,” the executive said.

The telcos’ total subscriber base increased to 87.3 million, up 7.9 per cent, while active data subscribers rose to 53.2 million. Data traffic grew by 34 per cent during the year. These figures reflect sustained demand for digital services across the country and underscore the need for continued investment in network capacity and resilience.

“We are mindful that in a period of economic pressure, expectations from customers are heightened. When Nigerians purchase data or rely on our network for work, education, financial services or daily communication, they expect reliability, fairness and continuous improvement. That expectation is both legitimate and central to our responsibility, Toriola noted.

MTN’s service revenue rose 55.1 per cent to N5.2tn in 2025, while earnings before interest, tax, depreciation and amortisation more than doubled to N2.7tn. Earnings per share improved to N53.07 from a negative N19.05 a year earlier, reflecting the sharp turnaround in operational performance.

Chief Financial Officer Modupe Kadiri said the company’s financial recovery was built on deliberate balance sheet repair, disciplined capital allocation and reduced foreign exchange exposure.

“A year ago, MTN Nigeria was in negative equity. Today, we are declaring a N20 total dividend for the 2025 financial year,” Kadiri stated.

The board approved a final dividend of N15 per share, subject to shareholder approval at the annual general meeting, bringing the total dividend for the year to N20 per share, including an interim dividend of N5 already paid in the fourth quarter.

According to its report, MTN generated N1.2tn in free cash flow during the year and rebuilt shareholders’ equity to N548.7bn, with retained earnings standing at N400.4bn at year-end, signalling restored financial stability after the previous year’s market volatility.

Toriola said profitability would continue to underpin infrastructure expansion, noting that profit enables sustained reinvestment in network quality and broader coverage rather than serving as an end in itself.

“Profit, in our context, is not an end in itself. It is the mechanism that enables continued investment in network quality, broader coverage and enhanced customer experience. As Nigeria’s digital ecosystem continues to expand across fintech, small businesses, education and public services, resilient and future-ready telecommunications infrastructure remains foundational to national development,” he added.

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Nigeria Civil Aviation Authority, NCAA orders airline to refund passengers charged VAT before January 1

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The Nigeria Civil Aviation Authority has directed Overland Airways to refund passengers who were wrongly charged Value Added Tax on flight tickets purchased before January 1, 2026.....TAP TO CONTINUE READING

The directive followed clarification issued by the Nigeria Revenue Service on the implementation of the new tax regime affecting airline tickets.

Passengers had complained to the regulators after an elderly woman was forced to pay the new tax in 2025, a fee that was expected to take effect on January 1, 2026.

The Director of Public Affairs and Consumer Protection at the NCAA, Michael Achimugu, in a statement on Saturday, disclosed that the matter had been resolved after regulatory engagement with the airline and the Nigeria Revenue Service.

“As directed by the NCAA, the operator, Overland Airways, has reverted with clarification from the Nigeria Revenue Service,” Achimugu said.

He clarified that passengers who bought tickets before the new tax laws came into force should never have been subjected to additional charges.

“Tickets purchased before January 1, 2026 were not affected by the new tax laws,” he said, adding that passengers who bought tickets in 2025 but were later made to pay VAT at check-in in 2026 were not supposed to have been charged.

According to the NCAA, the airline had initially implemented the VAT requirement based on its interpretation of the new fiscal policy, prompting complaints from affected travellers.

Achimugu explained that regulatory clarification became necessary to determine the correct application of the tax.

“The onus was on the NRS to clarify, which they have now done,” he said, noting that the aviation regulator had earlier communicated its position to the airline.

Following the clarification, Overland Airways agreed to correct the situation.

“The airline has committed to redress the situation by initiating a refund for affected passengers,” Achimugu added.

The controversy arose after several passengers complained that they were compelled to pay additional VAT charges at airport counters despite purchasing their tickets months before the tax provisions took effect.

Travellers described the development as unexpected and financially burdensome, especially during peak travel periods in December.

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