Nigeria’s state-owned energy company, Nigerian National Petroleum Company Limited (NNPC Ltd), has signed six strategic agreements aimed at expanding the use of natural gas, strengthening energy supply and supporting major industrial projects as the country seeks to position gas as a key driver of economic transformation.

The agreements, signed during the NOG Energy Week in Abuja, are designed to improve gas availability for power generation, industrial activities and large-scale energy projects, according to the company.

Among the key initiatives is an agreement linked to the revival of the Ajaokuta Steel Complex, one of Nigeria’s most ambitious industrial projects. The deal is expected to provide the gas supply needed to support power generation and industrial operations at the steel facility, which has remained largely inactive for decades.

The government views the revival of Ajaokuta as a strategic priority because a functioning steel industry could support infrastructure development, manufacturing, construction and other sectors of the economy.

The agreements also include a gas supply deal for the UTM Floating Liquefied Natural Gas (FLNG) project, as well as partnerships involving Chevron Nigeria Limited, ANOH Gas Processing Company (AGPC) and NNPC Exploration & Production Limited.

Through these agreements, NNPC aims to increase the supply of natural gas to Nigeria’s domestic market, including power plants and energy-intensive industries. The company said the initiatives could contribute hundreds of millions of standard cubic feet of gas per day to the national gas network.

Nigeria holds some of the largest natural gas reserves in the world, but the country has struggled for years to fully benefit from these resources due to infrastructure challenges, limited processing capacity and underinvestment in gas transportation networks.

President Bola Ahmed Tinubu’s administration has identified natural gas as a cornerstone of its economic diversification strategy, seeking to reduce dependence on crude oil exports and develop industries based on domestic energy resources.

The government’s gas strategy focuses on increasing electricity generation, supporting manufacturing, expanding petrochemical industries, reducing gas flaring and attracting private investment into the energy sector.

Analysts say the success of the initiative will depend on the implementation of the agreements, the development of infrastructure and the ability of the country to create a stable investment environment.

The signing of the six agreements highlights Nigeria’s broader ambition to transform its natural resources into industrial capacity and strengthen its position as one of Africa’s leading energy economies.