Key points
- NRGI says Nigeria should scale back its gas-to-power ambitions and adopt a balanced energy strategy.
- The institute warns against relying on gas as the backbone of the country’s electricity system.
- It recommends combining targeted gas investments with accelerated renewable energy deployment.
- The report also calls for reforms to improve gas supply, electricity distribution and energy planning.
Main story
The Natural Resource Governance Institute (NRGI) has urged Nigeria to scale back its gas-to-power ambitions and adopt a more balanced energy strategy, warning that overreliance on gas-fired electricity could undermine efforts to achieve reliable, affordable and sustainable power.
The recommendation is contained in a report titled “Nigeria’s Gas-to-Power Ambitions: Limits, Opportunities and Alternatives,” unveiled on Monday in Abuja during the National Dialogue on Nigeria’s Energy Transition.
The report said gas would remain an important part of Nigeria’s energy mix for decades but cautioned against treating it as the country’s primary long-term electricity solution.
According to the institute, two decades of experience have exposed persistent fuel supply constraints, financing challenges and governance weaknesses that continue to limit the performance of Nigeria’s gas-to-power sector.
It said these challenges require policymakers to adopt a pragmatic energy transition centred on affordability, operational efficiency and development outcomes rather than favouring a single electricity generation technology.
The report recommended preserving existing gas-fired power plants through targeted interventions while accelerating investments in renewable energy and strengthening electricity infrastructure.
It also urged the Ministries of Petroleum Resources and Power to improve gas supply to operational power plants through enhanced pipeline security, stricter enforcement of domestic gas supply obligations and stronger coordination among industry operators.
The institute further called on the Presidency to establish a multi-stakeholder committee to examine options for electricity generation companies to purchase gas in naira, saying the measure could reduce operating costs and ease foreign exchange pressures.
It also recommended increased investment in electricity distribution, improved metering and billing systems, integrated least-cost power planning and stronger regulatory frameworks for energy storage technologies.
The report advised the government against assuming generation companies’ debts to gas suppliers or issuing additional sovereign guarantees, urging it instead to channel public funds towards renewable energy projects and electricity storage.
The issues
Nigeria has identified natural gas as a key transition fuel in its drive to expand electricity access and reduce emissions. However, the country’s power sector continues to face challenges including inadequate gas supply, weak transmission and distribution infrastructure, financing constraints and poor revenue collection. NRGI argues that while gas will remain important, a diversified energy mix combining gas, renewable energy and storage technologies would deliver a more reliable and financially sustainable electricity system.
What’s being said
“The country’s energy future should not be framed as a choice between gas and renewables.” — Natural Resource Governance Institute
“It should instead be viewed as an opportunity to allocate limited public resources to technologies delivering reliable, affordable and sustainable electricity for long-term national development.” — Natural Resource Governance Institute
What’s next
The report recommends that agencies reviewing Nigeria’s Integrated Resource Plan and Strategic Investment Plan clearly define the future roles of gas and renewable energy while prioritising projects with realistic prospects of completion and stronger economic returns.
Bottom line
The NRGI is calling for a shift in Nigeria’s energy transition strategy, arguing that balancing gas with greater investment in renewable energy, storage and electricity infrastructure offers a more sustainable path to reliable power.
 has urged Nigeria to scale back its gas-to-power ambitions and adopt a ...){kind=link}