AGPC MD Calls for Regulatory Stability, Infrastructure Expansion to Unlock Nigeria’s Domestic Gas Potential

The Managing Director of ANOH Gas Processing Company (AGPC), Mr. James Makinde, has called for reforms in Nigeria’s domestic gas sector, stating that regulatory stability, infrastructure development, and contract sanctity are critical to unlocking sustained investment and increased gas supply.

Speaking at the Association of Local Distributors of Gas (ALDG) Business Forum 2026 in Abuja, Makinde dismissed the perception that gas producers are unwilling to supply the domestic market, insisting that the Nigerian gas sector has matured and can now compete effectively in the export market.

He said that producers are willing and ready to commit more gas volumes to the domestic market, but enabling conditions should be in place.

“There is an erroneous perception that producers do not want to supply gas to the domestic market. That is not correct. The domestic market now offers opportunities that can compete favourably with export markets. However, investors need predictability. Capital flows to environments where there is stability and certainty,” he said.

Makinde identified regulatory uncertainty and frequent price adjustments as key constraints to investment in the sector, noting that they undermine long-term planning and financing decisions.

He explained that the inability to forecast revenues over a five to 10-year horizon makes it difficult for investors to secure funding for gas development projects.

“If investors cannot reasonably forecast revenues over a five- or ten-year period, it becomes difficult to secure financing. We need greater predictability in both regulation and pricing if we are to unlock more gas for the domestic market,” he stated.

On infrastructure, the AGPC Managing Director commended ongoing initiatives such as the OB3 river crossing but noted that significant gaps remain in upstream-to-midstream gas infrastructure.

He advocated the development of integrated domestic gas gathering systems and centralised processing hubs to aggregate gas from multiple fields and improve monetisation of stranded reserves.

“There are processing facilities that are underutilised because they lack sufficient feedstock, while significant gas resources remain undeveloped because operators cannot justify the infrastructure costs. We need a framework that aggregates gas, processes it centrally, and delivers it efficiently to market,” Makinde said.

He also emphasised the importance of commercial discipline and enforceable contracts, particularly within gas supply arrangements involving the power sector.

He noted that producers operate within financing structures that require assured revenue streams and reliable counterparties, adding that strengthening contract sanctity would significantly improve investor confidence and reduce commercial risks in the sector.

Addressing questions on the role of coal in the energy mix, Makinde said that competition from alternative fuels should not be viewed as a threat to the gas industry, but rather as a catalyst for efficiency and pricing discipline.

He noted that different energy sources can coexist within a properly regulated energy framework, with environmental considerations remaining the responsibility of relevant regulatory authorities.

“I do not see coal as a challenge to our business. In fact, competition in the energy space is healthy. It pushes us to think more critically about pricing and market efficiency, especially down to the last mile,” he said.

He added that such competition ultimately strengthens the industry’s focus on cost competitiveness and responsiveness to market realities.

Makinde reaffirmed that addressing regulatory predictability, infrastructure deficits, and contract enforcement would significantly enhance investor confidence and accelerate growth in Nigeria’s domestic gas market.

“If we collectively address these challenges, the market is ready for growth, and producers will be willing to commit even more gas volumes to the domestic market,” he further said.