Managing Director of NIPCO Gas Limited, Mr. Nagendra Verma, has disclosed that the ongoing construction of the 18-inch, 80-kilometre natural gas pipeline from Sagamu to Ibadan has reached about 80 per cent completion and is on track for delivery between June and July 2026.
Verma, who spoke in Lagos on Friday, reaffirmed the company’s commitment to completing the strategic infrastructure within the projected timeline, noting that the pipeline will significantly enhance gas supply to industries and commercial consumers across Ogun and Oyo States, as well as adjoining areas in the Southwest.
According to him, the Sagamu–Ibadan pipeline represents a critical milestone in Nigeria’s gas expansion agenda and will serve as a major boost to industrial productivity in the region.
“This critical infrastructure will enhance manufacturing competitiveness, reduce production costs for industries currently dependent on alternative fuels, and stimulate regional economic growth. Given its strategic importance to Southwest industrialisation and national energy security, we respectfully seek the continued cooperation and support of relevant Federal and State Government authorities to ensure timely and seamless execution,” Verma stated.
He explained that many manufacturers in the region currently rely on more expensive and less environmentally friendly fuels such as diesel and Low Pour Fuel Oil (LPFO), which have been subject to price volatility. The availability of pipeline gas, he noted, will provide a more stable, cost-effective, and cleaner energy alternative, enabling businesses to optimise production processes and expand capacity.
Verma further disclosed that in line with efforts to deepen gas penetration across the Southwest, NIPCO Gas Limited, in partnership with NGML, is also developing complementary gas distribution infrastructure from Sagamu to Abeokuta in Ogun State.
The Sagamu–Abeokuta initiative, he said, is designed to accelerate industrial growth within the state by providing reliable gas supply to existing industries while attracting new manufacturing investments. The project is also expected to improve energy reliability for businesses, enhance operational efficiency, and strengthen internally generated revenue for the state government through increased economic activities.
“The project continues to enjoy strong collaboration and support from the Ogun State Government, reflecting a shared commitment to energy-driven economic development and sustainable industrial expansion,” Verma added.
Industry stakeholders have described the Sagamu–Ibadan pipeline as a strategic backbone infrastructure that will further consolidate Ogun and Oyo States as key industrial hubs within the Southwest corridor. The improved gas access is projected to stimulate growth in sectors such as cement production, food and beverage manufacturing, steel processing, pharmaceuticals, and agro-processing.
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Verma noted that Nigeria’s energy sector is undergoing a significant transformation under the framework of the Petroleum Industry Act (PIA), which has introduced improved regulatory clarity, strengthened governance structures, and enhanced investor confidence across the oil and gas value chain.
He observed that the Federal Government’s renewed emphasis on domestic gas utilisation, energy affordability, and economic diversification has further positioned natural gas as a critical transition fuel for sustainable national development.
“In the context of ongoing economic reforms, including fuel subsidy removal and fiscal restructuring, natural gas has become even more central to stabilising energy supply, supporting industrial productivity, and reducing the nation’s exposure to imported fuel volatility,” he said.
Verma emphasised that the clarity introduced by the PIA, alongside the issuance of Gas Distribution Licences by relevant regulators, has significantly strengthened the regulatory environment and created a more predictable investment climate for long-term infrastructure projects.
He added that private sector-led investments in gas transportation and distribution infrastructure will continue to play a pivotal role in unlocking Nigeria’s vast gas reserves for domestic economic use, reducing flaring, improving environmental outcomes, and advancing the country’s energy transition objectives.
With the Sagamu–Ibadan pipeline nearing completion, industry analysts believe the project will mark a major step forward in Nigeria’s quest to leverage its abundant natural gas resources as a catalyst for industrialisation, job creation, and sustainable economic growth.
