Finance, Technology Seen as Critical to Unlocking Nigeria’s Gas Potential

The Managing Director of Zamam Offshore Services Limited, Mr Oluwole Asalu, has urged government and private investors to put stronger financing structures, targeted infrastructure spending and faster technology adoption at the centre of Nigeria’s domestic gas push.

Mr Asalu spoke during a Lagos Energy Week session titled “Advancing Domestic Gas Utilisation: An ESG Framework for Emission Reduction,” where industry stakeholders discussed how environmental, social and governance standards can support responsible gas development in Nigeria.

He said the biggest obstacle is not demand for gas, but weak delivery infrastructure across the chain. According to him, supply reliability will remain difficult until large-scale infrastructure gaps are closed.

“Demand for gas is not the problem. The real challenge is the infrastructure required to deliver gas at scale. Until we close that gap, reliability will remain a structural issue. These infrastructures are capital-intensive, social-impact assets that typically require the biggest funders to step in,” he said.

Mr Asalu added that long-standing infrastructure shortfalls are still affecting present-day operations in the sector.

On digitalisation, he said technology can improve transparency and accountability for both regulators and operators.

“When the right systems are deployed, transparency improves, regulators gain clarity, and accountability becomes easier for everyone,” he said.

He described finance as the main trigger for faster ESG-compliant growth in domestic gas, arguing that capital providers now increasingly tie funding decisions to governance and measurable standards.

“Finance has to be the starting point. Whoever provides capital will demand standards, metrics, and governance,” he stated. “Increasingly, access to funding is tied directly to ESG alignment.”

The Managing Director of Axxela GMI, Mr Frank Umole, echoed that view. He said Nigeria has strong demand fundamentals and large reserves, but financing structure remains the core bottleneck for midstream expansion.

“We do not have a demand problem in Nigeria. We have over 210 trillion cubic feet of gas reserves and a young population that will continue to drive consumption. The problem is the cost of financing and the mismatch between infrastructure timelines and investor expectations.”

Mr Asalu also pointed to skills development as another pressure point, saying industry players must build stronger local talent pipelines to sustain growth.

“We have identified a persistent talent gap in the industry, and we are taking deliberate steps to address it through structured exposure and partnerships that deepen the competencies of young engineers,” he said.

He said progress in Nigeria’s gas market will depend on how quickly the country aligns funding, infrastructure delivery, technology systems and talent development.