Domestic Gas Supply Rises as Nigeria Expands Support for Industries

Nigeria increased the volume of natural gas supplied to the domestic market in May 2026, a development that could strengthen electricity generation and support industrial growth as the country pushes to maximise the economic value of its gas resources.

Latest data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that domestic gas sales rose to 2.18 billion standard cubic feet per day (bcf/d) during the month, accounting for 26.6 per cent of total gas utilisation.

The increase came as Nigeria recorded an average daily gas production of 7.93 bcf/d in May, slightly higher than the 7.88 bcf/d produced during the same period in 2025.

The figures underscore the Federal Government's efforts to make more gas available within the country as part of its broader strategy to improve energy security, support manufacturing and expand access to reliable power.

According to the commission, total gas production in May was only marginally lower than the 7.94 bcf/d recorded in April. However, the larger story was the continued allocation of substantial gas volumes to domestic consumers and productive sectors of the economy.

The NUPRC reported that export sales accounted for 3.07 bcf/d, representing about 40 per cent of total production. Another 2.11 bcf/d, equivalent to 26.5 per cent of output, was used for field operations and operational requirements across production facilities.

The commission noted that gas production has followed a generally upward path since the beginning of the year. Output increased from 7.80 bcf/d in January to 7.81 bcf/d in February, 7.85 bcf/d in March and 7.94 bcf/d in April before settling at 7.93 bcf/d in May. Year to date average production also improved to 7.87 bcf/d from 7.82 bcf/d recorded in the first quarter.

Another notable feature of the May figures was the growing contribution of non associated gas, which slightly exceeded associated gas production. Non associated gas production stood at 3.98 bcf/d, while associated gas contributed 3.96 bcf/d.

The NUPRC said the trend reflects the increasing maturity of dedicated gas development projects designed to expand Nigeria's gas supply base and reduce dependence on gas produced alongside crude oil.

The stronger domestic supply comes as the government continues to implement policies aimed at encouraging gas based industries and increasing the use of gas as a transition fuel in the country's energy mix.

The commission also reported continued progress in reducing waste through improved gas utilisation. Between January and April 2026, Nigeria produced 947.78 billion standard cubic feet of gas and utilised 872.69 billion standard cubic feet for domestic supply, exports and field operations. This represented about 92 per cent utilisation of total production.

During the same period, 57.34 billion standard cubic feet of gas was flared, while monthly flaring levels remained between 6 and 7 per cent of output.

Nigeria possesses more than 200 trillion cubic feet of proven natural gas reserves, making it one of Africa's largest gas resource holders. To further unlock the sector's potential, the NUPRC unveiled a Gas Development Roadmap aimed at commercialising over 55 trillion cubic feet of uncommitted reserves and attracting fresh investment into the country's gas value chain.

The government has also maintained its commitment to end routine gas flaring by 2030 while increasing gas availability for electricity generation, industrialisation and broader economic development.