Lagos: Three key subsidiaries of Dangote Industries Limited have significantly strengthened their natural gas supply agreements with units of the Nigerian National Petroleum Company Limited (NNPC Ltd) in a move designed to secure energy for ambitious expansion plans and support cleaner, higher-output industrial operations.
The gas contracts – signed during the unveiling of Nigeria’s new Gas Master Plan (GMP) 2026 at the NNPC Towers in Abuja – were entered into by Dangote Petroleum Refinery, Dangote Fertilizer Plant and Dangote Cement Plc with two NNPC Ltd subsidiaries: Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company Limited (NGIC). Though specific volumes were not disclosed, the agreements mark a significant step toward securing stable gas supplies critical to the conglomerate’s growth strategy.
The move comes as Nigeria seeks to shift its energy mix toward cleaner fuels and accelerate industrial growth. Natural gas, as an abundant and lower-carbon fuel compared with traditional petroleum products, plays a central role in the government’s energy vision. The GMP 2026 framework aims to fix longstanding supply bottlenecks by boosting infrastructure, expanding domestic output and attracting more than $60 billion in investments into the gas value chain by 2030.
Speaking at the ceremony, David Bird, Managing Director of the Dangote Petroleum Refinery, described the reinforced gas agreements as a “critical milestone” that will underpin planned expansions at Africa’s largest single-line refinery. By locking in gas supply, the refinery expects to sustain higher throughput and reduce the risk of operational disruptions that have historically affected energy-intensive industries in Nigeria.
For Dangote Cement Plc, the newly strengthened supply pact secures the fuel required to support its increasing demand and the adoption of Compressed Natural Gas (CNG) as an alternative fuel for industrial use and Autogas – a cleaner option for Nigeria’s transport sector. Cement production is highly energy-dependent, and guaranteed gas supply is expected to enhance output consistency and production efficiency.
At the Dangote Fertilizer Plant, gas supply stability is equally critical. Natural gas is a primary feedstock in fertilizer manufacturing, and reliable delivery is seen as essential to expanding capacity to meet both local and regional agricultural demand. By securing these supplies, Dangote’s fertilizer arm aims to underpin growth plans and contribute to broader food security objectives across West Africa.
The signing ceremony also highlighted the Nigerian government’s broader gas agenda. Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo emphasized that the updated Gas Master Plan represents a shift from policy drafting toward disciplined execution that seeks to convert Nigeria’s vast gas reserves into measurable economic value. With over 210 trillion cubic feet (Tcf) of proven reserves and even larger potential upside, officials argue that the nation’s challenge has been harnessing these resources into reliable, cost-effective supply for domestic use.
NNPC Ltd Group CEO Bashir Bayo Ojulari noted the enhanced gas deals align with broader national goals: raising gas output from approximately 8 billion cubic feet per day (bcf/d) to 10 bcf/d by 2027, and to 12 bcf/d by 2030. Officials say this ramp-up is critical to attracting investment, strengthening energy security and enabling industrial competitiveness in Nigeria’s downstream sectors.
Analysts say that while securing gas supply through long-term contracts is vital, the success of Nigeria’s gas strategy will depend on improvements in infrastructure, regulatory certainty and sustained investment to reduce bottlenecks. For Dangote Group, these agreements not only help safeguard energy access for current expansion but may also signal greater confidence among foreign and domestic investors in the country’s capacity to support large-scale industrial growth.