Sagamu–Ibadan Gas Pipeline Reaches 80% Completion, NIPCO Says

NIPCO Gas says construction of the Sagamu–Ibadan natural gas pipeline has reached 80 per cent, with delivery expected between June and July. The company said the project should improve energy access for industries across Ogun and Oyo states.

Speaking during an interactive session with energy correspondents in Lagos on Friday, Managing Director of NIPCO Gas Ltd., Nagendra Verma, said the 18-inch, 80-kilometre pipeline remains on schedule. He said the project is being developed with NNPC Gas Marketing Ltd. and will serve industrial and commercial users in both states and nearby Southwest locations.

Mr Verma said the line is part of a wider push to expand domestic gas use and reduce the pressure manufacturers face from expensive fuel alternatives. According to him, many factories in the corridor currently rely on diesel and Low Pour Fuel Oil, which are costlier and more exposed to market swings.

He said steady access to pipeline gas should lower operating costs, improve planning for manufacturers and support more reliable production cycles. He added that this could strengthen competitiveness for companies in sectors such as cement, steel, food and beverage, pharmaceuticals and agro-processing.

Mr Verma also said the project has implications beyond factory operations. He said stronger gas infrastructure can support regional output growth, improve the investment outlook for industrial estates and contribute to wider economic activity in host communities.

Beyond Ibadan, he said NIPCO Gas and NGML are also building supporting distribution infrastructure from Sagamu to Abeokuta. According to him, that project is designed to deepen gas penetration in Ogun State by supplying existing manufacturers and opening room for new industrial investments.

He said the company is seeking continued support from federal and state authorities to keep execution smooth through final delivery. Mr Verma said collaboration with the Ogun State Government has remained strong, adding that policy and institutional backing are important for timely completion and long-term utilisation of the network.

He maintained that the Sagamu–Ibadan pipeline is strategic infrastructure for Southwest industrialisation and for national energy security goals. With completion now at 80 per cent, he said attention is focused on the final construction phase and operational readiness ahead of the projected commissioning window.