The Nigerian National Petroleum Company Limited (NNPCL) has formalised a $3.5 billion memorandum of understanding (MoU) with the Akwa Ibom State Government and the Gas Aggregator Company of Nigeria (GACN), in a move aimed at accelerating gas industrialisation in Nigeria’s South-South region.
The agreement was signed on Tuesday during the opening session of the South-South Gas Utilisation Forum 2025 in Uyo, Akwa Ibom State, which brought together key stakeholders to chart a path toward leveraging the region’s abundant gas reserves for industrial growth and shared prosperity.
In its official statement, NNPCL described the MoU as a demonstration of the South-South geopolitical zone’s collective commitment to driving economic development through gas-based industries.
The event was attended by high-level government officials, including Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), and representatives from the governors of Akwa Ibom, Cross River, and Rivers States.
Leading the NNPCL delegation was Udy Ntia, Executive Vice President, Upstream, who also chairs the GACN Board. He was joined by Olalekan Ogunleye, Executive Vice President for Gas, Power, and New Energy at NNPCL. The Managing Director of GACN, Chijioke Uzoho, and his team convened the forum to rally stakeholders behind a unified vision of gas-driven development.
“The opening session culminated in the signing of a $3.5 billion Memorandum of Understanding between NNPC Ltd., GACN, and the Akwa Ibom State Government, signalling the South-South geopolitical zone’s commitment to driving gas industrialisation for shared prosperity,” the company said.
In a separate statement, Minister Ekpo underscored the personal significance of the event, noting his pride as an indigene of Akwa Ibom witnessing “this convergence of visionaries committed to gas-powered prosperity.”
He also used the occasion to commend Governor Umo Eno for fostering a business-friendly environment that could support the planned industrialisation drive, and praised GACN for spearheading the dialogue.
“This is a defining moment for the South-South. We have the gas reserves, the will, and now the platform,” Ekpo said.
“Our message is clear: Let’s turn gas into jobs, industries, and inclusive growth. Through the Decade of Gas, the LPG penetration programme, the AKK and OB3 pipelines, and the spirit of the PIA, we are building something lasting.”
He called on all stakeholders to move beyond discussions and deliver tangible results, stressing that this initiative represents a chance to lead not just a regional, but a national transformation.
The South-South region of Nigeria holds a significant portion of the country’s proven gas reserves, making it a natural focus for industrialisation strategies aimed at reducing reliance on crude oil exports while spurring local manufacturing, power generation, and job creation.
Meanwhile, NNPCL also released updated operational data for May 2025. The report showed a slight dip in gas production to 7.352 billion standard cubic feet per day (bscfd) from 7.354 bscfd in April. Gas sales similarly declined from 4.240 bscfd to 4.185 bscfd over the same period.
Despite these marginal declines in gas output and sales, the company reported an increase in total revenue, rising to N6.008 trillion in May from N5.972 trillion in April. Crude oil and condensate production also saw modest improvement during the month.
The $3.5 billion agreement in Akwa Ibom is widely seen as part of broader efforts by the Nigerian government and NNPCL to unlock the country’s gas potential, diversify the economy, and deliver on the promises of its “Decade of Gas” initiative.