Harnessing Natural Gas for Economic Transformation: Overcoming the Regulatory and Infrastructural Bottlenecks in Nigeria

Abstract

This research examines the significant potential of natural gas to drive economic growth in Nigeria, alongside the ongoing infrastructural and regulatory challenges that hinder its comprehensive utilisation. Employing a mixed-methods approach, the study evaluates data gathered from surveys, interviews, and focus groups in various Nigerian states, encompassing regions that are gas-producing, consuming, and underserved. The results indicate that access to natural gas significantly boosts household income and enhances the productivity of small and medium-sized enterprises (SMEs), thus aiding in poverty alleviation and empowering women. Nevertheless, the advantages are not evenly distributed, with urban and semi-urban areas benefiting more from the available infrastructure. In contrast, rural and marginalised communities continue to be neglected due to the lack of efficient pipeline networks, last-mile delivery systems, and prohibitive initial costs. The research identifies specific policy and institutional challenges, including pricing inconsistencies and poor enforcement of regulations, that deter equitable investment and access. By shedding light on these disparities, this study provides actionable insights for policymakers to promote targeted infrastructure development, rural-focused subsidies, and comprehensive regulatory reforms. The research concludes that fully harnessing the potential of natural gas necessitates a comprehensive and inclusive strategy that transforms it from merely a source of national revenue into a driver for equitable, sustainable, and widespread economic growth throughout the country.