Stalled Sagamu-Ibadan Pipeline Threatens Gas Supply

The 80-km Sagamu-Ibadan pipeline project, crucial for gas supply to businesses in South-west Nigeria, is currently stalled, threatening economic activities in the region. NIPCO Gas Limited, in a joint venture with the Nigerian National Petroleum Corporation (NNPC), has called for urgent intervention from President Bola Tinubu to resolve disputes and expedite the project.

This initiative is part of the implementation of the Petroleum Industry Act (PIA) aimed at utilizing Nigeria's abundant gas resources to revitalize industrial growth. NIPCO Gas Limited has been awarded four gas distribution licenses, which cover several locations including Ibadan and the Lekki Free Trade Zone.

The company aims to supply an additional 1.8 billion cubic feet of gas per day by 2026 to meet rising domestic demand. The project is expected to attract significant investment across the oil and gas value chain, contributing to Nigeria's target of supplying 10 billion cubic feet per day by 2027.