The Federal Government has commenced a $100 million gas distribution pipeline project aimed at boosting industrialisation, attracting investment and creating jobs across the South-East.
The 400-kilometre pipeline will connect gas resources to industrial and commercial centres in Enugu, Anambra, Imo, Abia and Ebonyi states. Project promoters have identified about 150 potential customers, with projected demand of 254 million standard cubic feet of gas daily.
The investment agreement was signed on Tuesday at the South-East Gas Infrastructure Investment and Project Development Ceremony at Hotel Presidential, Enugu.
President Bola Tinubu, represented by Deputy Speaker of the House of Representatives Benjamin Kalu, described the project as a strategic investment for regional economic growth.
He said the pipeline would strengthen manufacturing, connect industries to energy resources and create new economic opportunities across the five states.
The initiative also aligns with wider efforts to attract investment and expand infrastructure across the region, including Enugu’s push to attract German investment in agriculture, energy and technology.
Tinubu Highlights Industrialisation Benefits
Tinubu said the South-East’s entrepreneurial strength remains an important economic asset for Nigeria.
He explained that gas infrastructure should serve industries and markets across state boundaries rather than operate as isolated networks.
The President said the pipeline would support manufacturers in Aba, strengthen industrial clusters in Nnewi and Onitsha, and attract businesses to Enugu.
He added that the project would expand agro-processing and manufacturing in Ebonyi while connecting Imo’s gas resources to the wider regional economy.
Tinubu said the initiative would also create opportunities for new factories, industrial parks and investments previously delayed by unreliable energy supply.
He urged the South-East Development Commission (SEDC) to measure its performance through investment attracted, infrastructure delivered, jobs created and improvements in residents’ living conditions.
The project complements other regional development initiatives, including the South-East agro-development programme launched by Mbah and the SEDC.
SEDC Commits $3m to Pipeline Project
Tinubu commended the SEDC for committing $3 million towards the pipeline project.
He said the commission had also established a framework to attract additional funding from state governments, institutions and private investors.
The initial phase requires approximately $100 million. According to the President, cooperation between public institutions and private investors will be essential to delivering the infrastructure.
He urged the commission and its partners to maintain transparency, commercial discipline, environmental responsibility and high safety standards.
Tinubu also called for clear implementation timelines, measurable milestones and regular progress reports.
The SEDC is expected to play a coordinating role in regional development. Its activities form part of broader efforts to strengthen the South-East economy, including the ambition highlighted in the report on NACCIMA’s support for Enugu’s ₦30 billion economic target.
Mbah Commends Tinubu for Establishing SEDC
Enugu State Governor Peter Mbah praised Tinubu for establishing the South-East Development Commission.
Mbah described the commission as an important institution for advancing the region’s industrialisation plans.
He said the signing of the investment agreement marked the beginning of the project’s investment process. He also praised the SEDC for adopting a financing model that combines public resources with private capital.
According to Mbah, the pipeline could create employment opportunities and help young people build their futures within the South-East.
He said the region’s governors would support the project by accelerating right-of-way arrangements and environmental impact assessment approvals.
The governor’s comments come amid other development efforts in Enugu, including the administration’s reported achievements in infrastructure and public services. These include projects outlined in the report on Mbah’s 10,000 achievements across Enugu State.
The state government has also pursued initiatives to sustain its development agenda, as detailed in the report on Enugu’s efforts to sustain development gains.
South-East Governors Pledge Support
Imo State Deputy Governor Chinyere Ekomaru, representing Governor Hope Uzodimma, welcomed the project.
She noted that Imo’s natural gas resources placed the state in a strategic position to benefit from the proposed pipeline. She also said companies were seeking to purchase gas from the Assa North–Ohaji South development.
Anambra State Deputy Governor Onyekachukwu Ibezim, representing Governor Chukwuma Soludo, said the project’s success would depend on its impact on residents.
He urged communities along the pipeline route to cooperate with the project promoters.
Ebonyi State Deputy Governor Patricia Obila, representing Governor Francis Nwifuru, described energy as fundamental to industrial growth.
She said inadequate energy supply had contributed to the decline of some enterprises and pledged Ebonyi State’s support for the project.
The governors’ commitments reflect wider regional efforts to encourage investment and expand economic opportunities. The SEDC has also been linked to agricultural development plans, including a proposed 50,000-hectare agro-mechanisation project in Enugu.
GasSync Explains Pipeline Route and Construction Plan
GasSync representative Callistus Mba said the pipeline would connect gas resources near the South-East to industrial users across the five states.
He explained that the network would reduce dependence on transporting compressed natural gas and liquefied natural gas by road.
According to Mba, the pipeline would originate from the Ohaji area of Imo State and run through Owerri. Branches would extend towards Aba in Abia State and Onitsha in Anambra State, with further connections to Enugu and Ebonyi.
Mba said construction would begin at two locations simultaneously to speed up delivery.
The approach followed concerns raised by Mbah that building the network sequentially from Imo could delay gas supply to other states.
“We are going to start at Ohaji and Onitsha at the same time,” Mba said.
He explained that simultaneous construction would allow work towards Enugu and Ebonyi to progress alongside the Imo and Anambra sections.
Project Targets 150 Potential Customers
Mba said the project promoters had identified approximately 150 prospective customers across the region.
The company is engaging manufacturers, power-generation facilities and agro-processing businesses to establish demand for the gas.
He named Geometric Power in Abia State as one of the companies with which discussions were already underway.
Mba added that the pipeline could help revive struggling industries in Enugu and support the development of agro-processing facilities in Ebonyi.
The SEDC said it had completed technical, financial and legal due diligence before committing funds to the project. Its managing director and chief executive officer, Mark Okoye, said the commission was targeting up to $30 million in regional investment participation, including its initial $3 million commitment.
The project is also expected to complement other industrial investments in Enugu, including the multi-billion-naira pharmaceutical company commissioned by Mbah.
Construction Expected to Begin in 2027
Mba said procurement activities had commenced, while funding arrangements were progressing towards financial close.
He said preparations for engineering, procurement and construction were also underway.
The company plans to begin construction in the first quarter of 2027. It expects to deliver the first gas in the second quarter of 2028, subject to the completion of necessary requirements.
Mba identified regulatory approvals, right-of-way arrangements, community engagement and coordination between federal and state authorities as key conditions for meeting the timeline.
The project promoters have urged relevant authorities and host communities to support the approval process and implementation.
The emphasis on community participation reflects a wider development approach across Enugu State. Related initiatives include the CSDA’s rural development activities across seven Enugu South communities and the Deputy Speaker’s commendation of CSDA’s people-oriented projects.
Other development efforts include the CSDA’s community sensitisation and rural appraisal exercises and the Igbo-Eze South chairman’s praise for Mbah’s grassroots development agenda.
The project’s success will depend on timely approvals, funding, construction and cooperation among participating governments and communities.
Federal Government Targets Regional Economic Growth
Tinubu said the gas pipeline should translate the South-East’s natural resources into industrial production, employment and improved living standards.
He urged the SEDC, state governments and project partners to maintain clear timelines and report progress throughout implementation.
The commission’s investment model seeks to combine public funding with private capital to deliver infrastructure across the region.
The initiative comes as Enugu continues to pursue broader economic development and investment objectives. The state has also sought to promote investment opportunities and industrial growth through engagements with business stakeholders, including those featured in the Guild of Editors’ tour of Mbah’s development projects.
The proposed gas network is expected to serve industries across all five South-East states, with construction targeted for 2027 and first gas delivery projected for 2028.
Its eventual impact will depend on successful implementation and the ability to connect businesses to reliable energy supplies.
