Benin City:Nigeria’s oil and gas sector has seen a significant boost with NIPCO Group’s investment of approximately $2 billion, focusing on pipelines, compressed natural gas (CNG), liquefied petroleum gas (LPG), and retail infrastructure.
According to News Agency of Nigeria, NIPCO’s Managing Director Nagendra Verma highlighted this substantial investment during a briefing, emphasizing the company’s commitment to supporting Nigeria’s energy security and infrastructure development. The investments span pipeline infrastructure, CNG facilities, fuel retail outlets, automotive gas oil, and premium motor spirit infrastructure, along with LPG and propane facilities, logistics, and distribution networks.
NIPCO currently operates about 700 retail outlets for PMS, AGO, and LPG across Nigeria, strengthening its presence in the downstream energy market. Verma mentioned that the company has secured Gas Distribution Licences under the Petroleum Industry Act for four gas distribution zones, providing a regulatory and infrastructure platform for expanding its gas sector operations.
The company is focused on monetizing Nigeria’s abundant natural gas resources sustainably by developing infrastructure and increasing access to alternative fuels. As a private-sector pioneer in LPG storage and distribution infrastructure, NIPCO supports government initiatives to reduce dependence on PMS and promote cleaner, efficient energy solutions. In Benin City, more than 10,000 vehicles are estimated to operate on CNG, reflecting NIPCO’s contribution to the CNG ecosystem.
To strengthen gas connectivity, NIPCO has invested significantly in natural gas pipeline infrastructure, including an 18-inch, 80-kilometer pipeline from Sagamu to Ibadan and ongoing developments in the Lekki Free Trade Zone, Lagos State. Construction is also progressing on the Sagamu-Abeokuta gas pipeline, which aims to enhance natural gas availability for industrial and commercial users.
Verma stated that NIPCO has made substantial progress in developing gas infrastructure and commercial opportunities across the licensed areas. Alhaji Abdulkadir Aminu, Group Executive Director, noted that these initiatives align with the government’s goal of deepening indigenous gas utilization and expanding access to reliable and affordable gas for consumers and businesses. Through these investments, NIPCO continues to support Nigeria’s energy transition, promote CNG and LPG adoption, strengthen energy access, and contribute to economic growth.