Nigeria and Morocco Set to Sign $25 Billion Gas Pipeline Agreement

In a massive leap forward for African energy integration, Nigeria and Morocco are finalized to sign a landmark intergovernmental agreement this year for the $25 billion Nigeria-Morocco Gas Pipeline (NMGP). The project, also known as the African Atlantic Gas Pipeline, is poised to become one of the most ambitious infrastructure developments in the continent’s history.

The announcement was made by Amina Benkhadra, Director-General of Morocco’s Office National des Hydrocarbures et des Mines (ONHYM), who confirmed that the upcoming deal will formalize the political and regulatory framework needed to move the project into its execution phase.

Engineering the African Atlantic Gas Pipeline

Spanning approximately 6,900 kilometers, the pipeline will utilize a hybrid offshore-onshore route to connect 13 West African nations.

• Capacity: Up to 30 billion cubic meters of gas annually.

• Distribution: About 15 billion cubic meters are earmarked for Morocco’s domestic needs and exports to the European market via Spain.

• Regional Reach: The project is backed by ECOWAS and will serve as a backbone for industrialization and electricity generation across the West African coast.

A New Governance Model

To manage the complexities of a 13-country project, the agreement will trigger the establishment of a High Authority for the Pipeline in Nigeria. This body will consist of ministerial representatives from each participating nation to ensure seamless coordination.

Furthermore, a dedicated project company—a joint venture between NNPC Ltd and ONHYM—will be created to oversee the financing, construction, and technical delivery of the asset.

Phased Development and Economic Returns

One of the strategic shifts in the project’s delivery is the move toward a phased execution. Rather than waiting for a single, massive Final Investment Decision (FID) for the entire 6,900km stretch, different segments will be developed independently. This approach is designed to:

• Enable early economic returns as specific sections come online.

• Mitigate the financing complexities associated with such a high-capital project.

• Allow for localized infrastructure development within participating countries.

Strategic Context: Nigeria’s Gas Expansion

The progress on the NMGP comes as Nigeria continues to hit milestones in its domestic gas infrastructure. The $2.8 billion Ajaokuta-Kaduna-Kano (AKK) pipeline is already nearing completion, with gas supply to Abuja expected to commence by July 2026.

By linking these domestic projects to transcontinental pipelines, Nigeria is positioning itself not just as an oil producer, but as a strategic global gas hub. The NMGP will effectively turn Morocco into a “energy bridge” between Africa and Europe, providing a critical alternative for European nations seeking to diversify their energy sources amid ongoing global supply disruptions.