Dangote Industries Limited and the Nigerian National Petroleum Co. (NNPC Ltd) have finalized a series of expanded Gas Sales and Purchase Agreements (GSPA), securing the massive energy feedstock required to power Africa’s largest industrial conglomerate.
The deal, signed over the weekend in Abuja, locks in natural gas supplies for Dangote’s refinery, fertilizer, and cement operations, providing the “energy bedrock” for the group’s ambitious Vision 2030 expansion.
The pact was unveiled alongside the NNPC Gas Master Plan (NGMP) 2026, a roadmap aimed at transforming Nigeria into a global gas hub and attracting $60 billion in new investment by the end of the decade.
Triple Supply: Refinery, Cement, and Fertilizer
The agreements provide a strategic “lock-in” for the energy-intensive subsidiaries of the Aliko Dangote-led empire:
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The Refinery Play: Dangote Petroleum Refinery CEO David Bird noted the deal is a “critical milestone” to secure the vast energy requirements needed as the facility scales toward full production capacity.
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The CNG Shift: Dangote Cement Plc will use the guaranteed supply to accelerate its transition to Compressed Natural Gas (CNG) for its massive logistics fleet (Autogas), helping lower its carbon footprint and operational costs.
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Fertilizer Expansion: For Dangote Fertiliser FZE, the agreement is foundational, as natural gas serves as the primary raw material for urea production, supporting upcoming capacity hikes to boost Nigerian agricultural yields.
Nigeria’s 12 bcf/d Ambition: The Gas Master Plan 2026
NNPC Group CEO Bashir Bayo Ojulari framed the agreements as the first major win for the newly launched NGMP 2026:
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Production Targets: The plan seeks to push national gas production to 10 billion cubic feet per day (bcf/d) by 2027 and 12 bcf/d by 2030.
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Reserve Potential: With 210 trillion cubic feet (Tcf) of proven reserves and an estimated upside of 600 Tcf, Nigeria is moving to reclassify “3P” resources into bankable “2P” reserves to attract global capital.
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Investment Magnet: The master plan is designed to catalyze over $60 billion in oil and gas value chain investments, supported by the fiscal incentives of the Petroleum Industry Act (PIA).
Speaking at the event, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, described the Gas Master Plan as a deliberate pivot from policy articulation to disciplined execution, anchored on commercial viability and integrated sector-wide coordination.
Hon. Ekpo further noted that the Plan’s strong focus on supply reliability, infrastructure expansion, domestic and export market flexibility, and strategic partnerships aligns seamlessly with the Federal Government’s Decade of Gas Initiative, positioning natural gas as the backbone of Nigeria’s energy security, industrialisation, and just energy transition.
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