Nigerian government launches $100 million gas pipeline project in the South-east

The Nigerian government has started a $100 million gas pipeline project to boost industry, attract investments, and create jobs in the South-east region.

This 400-kilometre pipeline aims to connect gas resources to commercial and industrial areas in Enugu, Anambra, Imo, Abia, and Ebonyi states.

About 150 potential customers have been identified, with a projected demand of 254 million standard cubic feet of gas each day.

President Bola Tinubu announced the project on Tuesday after signing the investment agreement at the South-East Gas Infrastructure Investment and Project Development Ceremony at Hotel Presidential, Enugu.

Mr Tinubu, represented by the Deputy Speaker of the House of Representatives, Benjamin Kalu, said the South-east Development Commission (SEDC) will implement the project.

He called it a "strategic investment" that would connect the region’s gas resources to industries. This will boost manufacturing and create economic opportunities across the five states.

“The South-east’s entrepreneurial spirit is one of Nigeria’s greatest economic assets. I have always believed that the prosperity of the South-east is inseparable from the prosperity of Nigeria,” Mr Tinubu stated.

He added that the project fits with his administration’s goal of building a connected regional economy. He emphasized that gas infrastructure should support industry across state lines, not just serve isolated markets.

“That is the economic logic of regional integration,” he explained.

The pipeline will help manufacturers in Aba. It will strengthen industrial areas in Nnewi and Onitsha. The project will also attract businesses to Enugu, expand agro-processing and manufacturing in Ebonyi, and connect Imo’s gas resources to the wider economy.

Mr Tinubu mentioned that the plan goes beyond supplying current factories. It aims to create conditions for new industries.

“It was issued to make possible factories that do not yet exist, industrial parks yet to be developed, and investments that have remained on the drawing board because reliable energy was unavailable,” he said.

He described the SEDC as a body set up to deliver real development. He urged it to measure its success by the investments it attracts, the infrastructure it supports, and the lives it improves.

“This is the model I expect from our development institutions: identify strategic economic opportunities, prepare credible projects, commit public resources responsibly and mobilize private capital at a scale government budgets alone cannot achieve,” he stressed.

The president praised the SEDC for investing $3 million in the gas project. He acknowledged the commission’s efforts to bring in more investments from state governments and private investors.

He noted the initial phase of the project needs about $100 million. He called the partnership between public bodies and private investors key to building lasting infrastructure.

“We are not investing in pipelines for their own sake. We are investing in the industries, businesses, and jobs those pipelines will make possible,” the president said.

Mr Tinubu urged the commission and its partners to maintain commercial discipline, transparency, environmental responsibility, and safety standards during the project.

The main goal is to turn the region’s gas resources into economic activity, jobs, and better living standards.

“Let the gas beneath our soil power our industries. Let that energy become production. Let production become employment. Let employment become prosperity for our people,” he added.

He also called for clear timelines, measurable milestones, and regular progress reports, saying the project's success will depend on attracting investments, reviving industries, and creating jobs.

Governor Peter Mbah of Enugu State praised Mr Tinubu for creating the SEDC. He said the commission is needed to fulfill the South-east’s long-held dreams of industrial growth.

“Tinubu loves the Igbo. The SEDC is a commission whose time has come. It was an idea conceived many decades ago, but it took President Tinubu to establish this long-awaited dream of industrialisation of the South-east,” Mr Mbah stated.

He called the signing of the investment agreement the beginning of the investment process. He added that this initiative will help create a common market and coordinated industrial development in the region.

The governor mentioned that the project will provide opportunities for young people to build their futures in the South-east rather than seek jobs elsewhere.

“We, the South-east governors, are committed to this. We will ensure that the right of way and EIA are given accelerated approval,” he said.

The SEDC Managing Director and CEO, Mark Okoye, said the commission did thorough checks before committing funds to the project, which received approval from its board.

Mr Okoye said they are aiming for a regional investment of up to $30 million, including the initial $3 million commitment. This is part of their efforts to gather the private capital needed to move the project forward.

He noted that the initiative matches the commission’s industrialization plan and commitment to develop infrastructure for the whole region.

Callistus Mba, a representative of GasSync, the project promoter, explained that the pipeline will connect nearby gas resources to industrial users across the five states. This will cut down on the costly transport of compressed natural gas and liquefied natural gas by road.

Mr Mba said the proposed pipeline will start from the Ohaji area of Imo State, run through Owerri, and extend to Aba in Abia State and Onitsha in Anambra State, with further connections to Enugu and Ebonyi.