NNPC, Akwa Ibom, and GACN sign $3.5bn gas deal to boost South-South industrial growth.
MoU aims to turn region into gas-powered hub as stakeholders push for swift implementation.
In a landmark move aimed at accelerating Nigeria’s gas industrialization agenda, the Nigerian National Petroleum Company Limited (NNPC Ltd.), the Akwa Ibom State Government, and the Gas Aggregation Company of Nigeria (GACN) have signed a $3.5 billion memorandum of understanding (MoU).
The agreement was formalized on Tuesday during the opening session of the 2025 South-South Gas Utilization Forum in Uyo, Akwa Ibom State, underscoring the region’s commitment to leveraging its vast gas resources for industrial and economic growth.
According to a statement by NNPC Ltd., the agreement represents a joint effort to catalyze sustainable development across the South-South geopolitical zone through strategic gas utilization. It aims to foster shared prosperity by transforming the region into a central gas hub for industries, power, and innovation.
NNPC delegation was led by Udy Ntia, Executive Vice President of Upstream, who also chairs the GACN board. Olalekan Ogunleye, Executive Vice President for Gas, Power, and New Energy at NNPC, joined him. GACN Managing Director, Chijioke Uzoho, and his team convened the forum to rally regional stakeholders behind a shared industrialization vision.
Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo, who attended the event alongside representatives from Akwa Ibom, Cross River, and Rivers State governments, described the event as both official and personal.
“As an indigene of Akwa Ibom, I am proud to witness this convergence of visionaries committed to gas-powered prosperity,” Ekpo said, hailing the MoU as a defining moment for the South-South.
The minister also commended Governor Umo Eno for fostering an investment-friendly environment and praised GACN’s leadership for driving the conversation toward tangible development.
“This is our opportunity to lead not just a regional dialogue but a national transformation,” he noted. “Let’s convert gas into jobs, industries, and inclusive growth through key initiatives such as the Decade of Gas, the LPG penetration program, the AKK and OB3 pipelines, and the Petroleum Industry Act (PIA).”
Despite the upbeat tone of the forum, recent figures released by NNPC indicate a slight decline in national gas output. Nigeria’s gas production in May 2025 stood at 7.352 billion standard cubic feet per day (scfd), slightly down from 7.354 billion scfd recorded in April.
Gas sales also dipped from 4.240 billion scfd in April to 4.185 billion scfd in May. However, the company’s overall revenue rose marginally from ₦5.972 trillion in April to ₦6.008 trillion in May, supported by slight gains in crude oil and condensate production.
The $3.5 billion MoU is expected to catalyze attracting private investment, creating employment, and boosting regional energy access. It also aligns with the broader goals of the Federal Government’s energy transition and economic diversification strategies.
