The Managing Director of NIPCO Gas Ltd., Mr. Nagendra Verma, says the 18-inch, 80-kilometre Sagamu–Ibadan natural gas pipeline has reached 80 per cent completion.
Verma disclosed this during an interactive session with energy correspondents on Friday in Lagos.
He stated that the project is scheduled for delivery between June and July, reaffirming the company’s commitment to completing the strategic infrastructure within the projected timeline.
According to him, the pipeline, being developed in partnership with NNPC Gas Marketing Ltd. (NGML), will significantly boost gas supply to industrial and commercial consumers in Ogun and Oyo states, as well as adjoining areas in the Southwest.
Verma described the Sagamu–Ibadan pipeline as a major milestone in Nigeria’s gas expansion drive, noting that it is expected to strengthen industrial productivity and enhance energy security.
“This critical infrastructure will improve manufacturing competitiveness, lower production costs for industries dependent on alternative fuels, and stimulate regional economic growth,” he said.
He added that given the project’s strategic importance to Southwest industrialisation and national energy security, the company sought the continued cooperation and support of relevant federal and state authorities to ensure seamless execution.
Verma explained that many manufacturers in the region currently rely on diesel and Low Pour Fuel Oil (LPFO), both of which are more expensive and subject to price volatility.
He noted that access to pipeline gas would provide a more stable, cost-effective and environmentally friendly alternative, enabling businesses to optimise operations and expand capacity.
Beyond the Ibadan corridor, he disclosed that NIPCO Gas, in collaboration with NGML, is also developing complementary gas distribution infrastructure from Sagamu to Abeokuta to deepen gas penetration across Ogun State.
The Sagamu–Abeokuta project, he said, is aimed at accelerating industrial growth by providing reliable gas supply to existing manufacturers while attracting fresh investments into the state.
He further noted that the initiative is projected to improve energy reliability, enhance operational efficiency for businesses and boost internally generated revenue through increased economic activity.
“The project continues to enjoy strong collaboration and support from the Ogun State Government, reflecting a shared commitment to energy-driven economic development and sustainable industrial expansion,” Verma added.
The Sagamu–Ibadan pipeline as strategic backbone infrastructure that will further consolidate Ogun and Oyo states as leading industrial hubs in the Southwest.
Improved access to natural gas is expected to drive growth across key sectors, including cement, food and beverage, steel, pharmaceuticals and agro-processing.
