- Akwa Ibom signed an MoU with GACN, triggering NNPC’s $3.5 billion investment in gas infrastructure, including pipelines, methanol and floating LNG.
- The deal positions the state as a gas-based industrial hub, aligning with Nigeria’s energy transition goals.
Akwa Ibom State has taken a significant step toward becoming a top gas-based industrial hub after the Nigerian National Petroleum Company Limited (NNPC Ltd) approved a $3.5 billion investment in gas infrastructure.
The state government, led by Governor Umo Eno, signed a landmark Memorandum of Understanding (MoU) with the Gas Aggregator Company of Nigeria (GACN) during the South-South Gas Utilisation Forum in Uyo. Deputy Governor Senator Akon Eyakenyi signed the agreement on behalf of the state.
Governor Eno called the MoU and investment a “strategic leap toward energy-led prosperity.” He credited President Bola Tinubu for supporting gas development and thanked the Minister of State for Petroleum Resources (Gas), Obongemem Ekperikpe Ekpo, industry leaders, and stakeholders for advancing the federal energy vision.
“We will provide a business-friendly environment, enforce environmental standards, and deliver real benefits to host communities,” Eno said.
Minister Ekpo praised Governor Eno’s leadership and described the summit as a turning point for Akwa Ibom’s energy ambitions. “This is more than a forum, it is a bold statement and a clear roadmap for gas-led growth,” Ekpo said. “Governor Eno’s vision supports President Tinubu’s Gas to Prosperity, Renewed Hope Agenda.”
The minister urged the South-South region to move beyond raw gas production and focus on building value-added industries. He listed priorities such as petrochemicals, fertilisers, modular refineries, and CNG-powered transport systems.
He also highlighted the Petroleum Industry Act (PIA) 2021, which requires oil and gas companies to invest three per cent of their annual operational expenditures in host community development, including education, healthcare, infrastructure, and economic empowerment.
“We want host communities to co-own the energy sector, not stand on the sidelines,” Ekpo said.
NNPC’s Executive Vice President (Gas), Olalekan Ogunleye, explained that the $3.5 billion investment will support major infrastructure projects. These include a cross-country gas pipeline, offshore-to-land gas systems, methanol plants, fertiliser plants, and floating LNG facilities.
The MoU, signed by Secretary to the State Government Prince Enobong Uwah and Attorney General Uko Udom SAN, outlines a framework to position Akwa Ibom as a key destination for gas-based industrial investment.
The agreement also provides for an Akwa Ibom State Gas Master Plan (AKS-GMP), which will focus on data mapping, infrastructure planning, and demand forecasting.
The MoU commits both parties to develop gas-based industries using transparent and commercially viable access to gas. It also promotes virtual pipeline solutions such as CNG, LPG, and LNG for industrial and domestic use.
Finally, the agreement supports Nigeria’s energy transition and climate goals under the federal government’s Decade of Gas initiative.