Nigeria's gas producers are not holding back. The system around them is.
That was the unambiguous message from James Makinde, Managing Director of ANOH Gas Processing Company (AGPC), speaking at the ALDG Business Forum 2026 in Abuja.
Clearing Up a Damaging Myth
Makinde opened by pushing back hard on a narrative that has circulated in policy circles for years — that gas producers are reluctant to supply the domestic market.
"There is an erroneous perception that producers do not want to supply gas to the domestic market. That is not correct. The domestic market now offers opportunities that can compete favourably with export markets."
— James Makinde, MD, AGPC
The real barrier, he said, is not producer will. It is investor confidence — and confidence requires predictability.
The Investment Problem in Plain Terms
Makinde identified two structural killers of long-term investment in Nigeria's gas sector.
First: regulatory uncertainty. Frequent policy shifts and price adjustments make long-term financial modelling nearly impossible.
Second: revenue unpredictability. Without the ability to forecast cash flows over a five-to-ten-year horizon, securing project financing becomes a wall rather than a process.
"If investors cannot reasonably forecast revenues over a five- or ten-year period, it becomes difficult to secure financing. We need greater predictability in both regulation and pricing if we are to unlock more gas for the domestic market."
— James Makinde, AGPC
The Infrastructure Gap
Makinde commended progress on initiatives like the OB3 river crossing but was direct about what remains undone.
Significant gaps in upstream-to-midstream gas infrastructure continue to leave reserves stranded and processing facilities underutilised.
His solution: integrated domestic gas gathering systems and centralised processing hubs that aggregate gas from multiple fields.
"There are processing facilities that are underutilised because they lack sufficient feedstock, while significant gas resources remain undeveloped because operators cannot justify the infrastructure costs."
— James Makinde, AGPC
What a Better Framework Looks Like
| Reform Area | What Is Needed |
|---|---|
| Regulatory Stability | Consistent rules over 5–10 year investment cycles |
| Pricing Predictability | Fewer ad hoc price adjustments |
| Infrastructure | Centralised processing hubs, better gathering systems |
| Contract Sanctity | Enforceable offtake agreements, especially with power sector |
| Revenue Assurance | Reliable counterparties across the supply chain |
Contracts and the Power Sector Problem
Makinde singled out the power sector as a particular concern within gas supply arrangements.
Gas producers operate within financing structures that demand assured revenue streams and reliable counterparties.
When contracts are not enforced, the entire investment case for expanding domestic supply weakens.
On Coal Competition: Not a Threat
Asked about the role of coal in Nigeria's energy mix, Makinde took a notably measured position.
"I do not see coal as a challenge to our business. In fact, competition in the energy space is healthy. It pushes us to think more critically about pricing and market efficiency, especially down to the last mile."
— James Makinde, AGPC
The Bottom Line
Makinde closed with a direct commitment: fix the enabling environment, and producers will deliver more gas.
"If we collectively address these challenges, the market is ready for growth, and producers will be willing to commit even more gas volumes to the domestic market."
For investors and entrepreneurs tracking Nigeria's energy economy, our business funding guide explores how capital decisions are made in high-uncertainty sectors — and how to position around infrastructure-led cycles.
Understanding how policy and regulation shape investment returns is also central to our investment policy statement guide — essential reading for anyone deploying capital in emerging market energy plays.
According to the Nigerian Gas Association, Nigeria currently utilises less than 20 per cent of its domestic gas production capacity for in-country industrial consumption.
A Bloomberg energy report on West African gas markets found that contract enforcement failures in Nigeria's power sector have cost gas producers an estimated $6 billion in uncollected receivables over the past decade.
Reported by the WealthBlueprint NewsDesk. Information sourced from the ALDG Business Forum 2026, Abuja, and verified energy industry data.