The Nigerian National Petroleum Corporation Limited (NNPCL), Akwa Ibom State Government, and the Gas Aggregation Company of Nigeria (GACN) signed a $3.5 billion Memorandum of Understanding (MoU) on July 15, 2025, to drive gas industrialization in the region.
The agreement, inked at the Government House in Uyo, aims to harness Akwa Ibom’s 2.2 trillion cubic feet of proven gas reserves to establish a gas processing hub, creating 10,000 jobs and boosting Nigeria’s 2025 gas production target of 4 billion cubic feet daily. The project includes a 300-megawatt power plant and fertilizer plants, with construction slated to begin in 2026.
Governor Umo Eno hailed the deal as a economic lifeline, addressing the state’s 15% unemployment rate, while NNPCL’s Group CEO Mele Kyari emphasized its role in diversifying from oil amid a 20% production drop in 2024.
GACN’s Managing Director Justin Ezeala outlined a 10-year timeline, though funding challenges loom, with 60% of the cost reliant on private investment. Environmental groups caution against ecological risks in the Niger Delta, but local leaders see it as a step toward industrial growth, with the MoU pending regulatory approval from the Nigerian Upstream Petroleum Regulatory Commission.