Dangote Group Inks Major Gas Supply Pact with NNPC, Aligning with Nigeria's Energy Expansion Drive
In a significant step for Nigeria's energy sector, Dangote Group—the industrial behemoth owned by billionaire Aliko Dangote—has finalized a comprehensive natural gas supply agreement with the Nigerian National Petroleum Company (NNPC). The deal directly supports the government's strategic pivot to harness gas as a primary engine for economic diversification and industrial scaling.
The agreement will channel gas to critical Dangote subsidiaries, including its massive new refinery, fertilizer plants, and cement operations. This comes as the group aims to double the refinery's capacity to 1.3 million barrels per day within the year. The partnership aligns with NNPC's recently launched Gas Master Plan, which targets a 50% surge in gas production to 12 billion cubic feet daily by 2030. Officials estimate the master plan could catalyze over $60 billion in oil and gas investments by the end of the decade.
Nigeria sits on Africa's largest proven gas reserves, exceeding 200 trillion cubic feet, yet development has lagged for decades amid an overwhelming focus on crude oil. This deal is viewed as a concrete step toward monetizing this underutilized resource, reducing reliance on imports, and powering domestic industry.
Analyst Perspective: "This isn't just a supply contract; it's a strategic alignment," said Chioma Okeke, an energy analyst based in Lagos. "It secures affordable energy for Dangote's expansion while giving NNPC a guaranteed off-taker for its gas, de-risking parts of its investment plan."
Critical View: Emeka Okafor, a policy advocate, reacted more sharply: "Once again, a sweetheart deal for the country's most powerful businessman. Where are the similar frameworks for smaller manufacturers struggling with crippling energy costs? This entrenches monopoly power while the public is told it's for 'national development.'"
Industry Voice: Veteran engineer Fatima Aliyu noted, "If the infrastructure and delivery follow through, this could finally kickstart a genuine gas-based industrial revolution we've been promised for 30 years. The proof will be in sustained supply, not just signatures."