SOUTH-EAST’S INDUSTRIAL AMBITION GETS $100M BOOST AS FG BACKS REGIONAL GAS PIPELINE

…SEDC commits $3m, targets $30m in regional investment mobilisation

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…Mbah, other governors pledge support as GasSync targets 2027 construction

…400km network projected to deliver first gas in 2028, serve 150 potential customers

The South-East’s drive to reclaim its position as one of Nigeria’s leading industrial hubs has received a major boost with the signing of an investment agreement for a proposed $100 million regional gas distribution pipeline, an initiative expected to improve energy access, stimulate manufacturing and attract fresh private-sector investment across the five states.

The project, promoted by GasSync with the support of the South-East Development Commission (SEDC), envisages a 400-kilometre pipeline connecting gas resources around Imo State to industrial and commercial centres in Abia, Anambra, Ebonyi and Enugu.

The agreement was signed on Tuesday at the South-East Gas Infrastructure Investment and Project Development Ceremony at Hotel Presidential, Enugu, with the SEDC committing an initial $3 million and targeting up to $30 million in aggregate regional investment participation to advance the project.

Beyond its infrastructure value, the proposed pipeline represents an attempt to address one of the region’s persistent economic constraints: the high cost and unreliable availability of energy for industrial production.

For a region renowned for its entrepreneurial culture, manufacturing clusters and commercial networks, dependable gas supply could help businesses reduce energy costs, expand production and improve their competitiveness. However, the extent of these benefits will depend on the timely delivery of the pipeline, commercially viable gas supply and the capacity of industries to take advantage of the infrastructure.

President Bola Tinubu, represented by the Deputy Speaker of the House of Representatives, Benjamin Kalu, described the initiative as a strategic investment in the economic future of the South-East, stressing that the region’s prosperity was closely connected to Nigeria’s broader economic development.

“The Southeast’s entrepreneurial spirit is one of Nigeria’s greatest economic assets. I have always believed that the prosperity of the Southeast is inseparable from the prosperity of Nigeria,” Tinubu said.

The President argued that the region needed an integrated energy network capable of serving industries across state boundaries, rather than fragmented infrastructure that limits economic opportunities to individual locations.

He said the proposed pipeline could strengthen manufacturing in Aba, support industrial activities in Nnewi and Onitsha, attract new investments to Enugu, expand agro-processing in Ebonyi and connect Imo’s gas resources to a wider regional market.

Tinubu said the ambition should extend beyond meeting the needs of existing factories to creating the conditions for new industrial facilities, business parks and investments that have remained unrealised because of inadequate energy infrastructure.

“Our ambition is not simply to deliver gas to existing factories. It is to make possible factories that do not yet exist, industrial parks yet to be developed, and investments that have remained on the drawing board because reliable energy was unavailable,” he said.

He positioned the SEDC as a key institution for translating the region’s development aspirations into measurable economic outcomes, urging the commission to prioritise investment mobilisation, infrastructure delivery, job creation and improvements in living standards.

The President also cited the South-East Vision 2050 development framework and the establishment of the South-East Investment Company as part of efforts to coordinate regional priorities and attract private capital into strategic infrastructure.

According to him, the scale of investment required to transform the region makes collaboration between governments, development institutions and private investors indispensable.

Tinubu commended the SEDC for its initial $3 million commitment and called on all project partners to maintain transparency, commercial discipline, environmental responsibility and strict safety standards.

“We are not investing in pipelines for their own sake. We are investing in the industries, businesses and jobs those pipelines will make possible,” he said.

He further urged the commission and its partners to establish clear implementation timelines, measurable milestones and regular progress reports, noting that the project’s success should ultimately be judged by its impact on businesses, employment and household prosperity.

MBah backs regional economic integration

Enugu State Governor, Dr Peter Mbah, described the agreement as an important step towards realising the South-East’s long-standing ambition of coordinated industrial development and a more integrated regional economy.

Mbah credited Tinubu with establishing the SEDC, describing the commission as an institutional platform through which the region could pursue shared development priorities and mobilise resources for major infrastructure projects.

“Tinubu loves the Igbo. The SEDC is a commission whose time has come. It was an idea conceived many decades ago, but it took President Tinubu to establish this long-awaited dream of industrialisation of the Southeast,” the governor said.

He said the signing marked the commencement of the investment process and expressed satisfaction that the initiative was advancing less than 13 months after he publicly advocated the idea.

For Mbah, the project’s importance extends beyond energy supply to the question of whether the South-East can retain its young and entrepreneurial population by creating viable economic opportunities within the region.

He argued that improved access to energy could encourage businesses to expand, attract new industries and provide young people with opportunities to build sustainable livelihoods without having to migrate elsewhere in search of employment.

“Before now, it was our young people running out of the region in search of greener pastures. But with what we have now, our young people can sit back and find their future here in the region,” he said.

The governor pledged the support of the South-East governors, particularly in expediting right-of-way arrangements and environmental impact assessment approvals required for construction.

His commitment highlights a critical factor in the project’s delivery: although the investment agreement establishes a framework for moving forward, its implementation will require sustained coordination among state governments, federal authorities, investors, host communities and regulatory agencies.

Other states pledge cooperation

The other South-East states also expressed support for the initiative, with their representatives emphasising the need to translate the proposed infrastructure into tangible economic benefits.

Imo State Deputy Governor, Lady Chinyere Ekomaru, representing Governor Hope Uzodimma, said the project offered an opportunity to connect the state’s substantial natural gas resources to a broader network of industrial consumers.

She noted that the initiative was particularly timely as companies sought opportunities to access gas from the Assa North–Ohaji South development.

Ekomaru also urged residents to consider the Federal Government’s development interventions in the region ahead of the 2027 general elections.

Anambra State Deputy Governor, Dr Onyekachukwu Ibezim, representing Governor Chukwuma Soludo, welcomed the project but stressed that public confidence would depend on its actual impact.

“We will clap for you when we begin to feel the impact of what you are doing,” he said.

He called on communities along the proposed pipeline corridor to cooperate with the project promoters, noting that the region’s gas resources could support wider industrial growth if properly developed.

Ebonyi State Deputy Governor, Mrs Patricia Obila, representing Governor Francis Nwifuru, described reliable energy as fundamental to industrial recovery, noting that inadequate power supply had contributed to the decline of several businesses.

She pledged the state government’s cooperation and expressed hope that improved energy access would help moribund companies resume operations and create employment.

Permanent Secretary of the Federal Ministry of Regional Development, Dr Mary Ogbe, said the SEDC was pursuing initiatives aimed at improving living standards across the South-East. She assured the governors that the commission would complement their development programmes and encouraged investors to explore emerging opportunities.

SEDC, GasSync outline financing and construction plans

Providing details of the investment framework, SEDC Managing Director and Chief Executive Officer, Mark Okoye, said the commission had undertaken technical, financial and legal due diligence before securing approval from its governing board for the initial commitment.

Okoye said the commission was targeting up to $30 million in aggregate regional investment participation, including its initial $3 million commitment, as part of efforts to mobilise the capital required for the project.

The proposed pipeline’s initial investment requirement is estimated at $100 million, making additional financing and private-sector participation essential to its advancement.

Representing GasSync, Callistus Mba said the network was designed to reduce the region’s reliance on road transportation of compressed natural gas (CNG) and liquefied natural gas (LNG), which can increase supply costs for industrial users.

He explained that the proposed route would originate in the Ohaji area of Imo State, pass through Owerri and branch towards Aba in Abia State and Onitsha in Anambra State, with extensions to Enugu and Ebonyi.

To accelerate delivery, the company plans to commence construction at Ohaji and Onitsha simultaneously, allowing work on different sections to proceed in parallel instead of waiting for the entire network to advance sequentially from Imo State.

Mba disclosed that approximately 150 potential customers had been identified across the five states, with engagement ongoing to establish demand from manufacturing companies, power-generation facilities and agro-processing businesses.

Geometric Power in Abia State is among the prospective users with which discussions are underway, he said. The project is also expected to support industrial recovery in Enugu and provide energy infrastructure for agro-processing businesses in Ebonyi.

On the implementation schedule, Mba said procurement activities had commenced, funding arrangements were advancing towards financial close, and preparations for the engineering, procurement and construction phase were progressing.

He projected that construction would begin in the first quarter of 2027, with first gas delivery targeted for the second quarter of 2028, subject to the completion of the necessary requirements.

Delivery will determine the project’s impact

The pipeline’s proposed capacity to connect gas resources with industrial demand across five states places it among the region’s significant infrastructure initiatives. Project promoters have identified potential demand of 254 million standard cubic feet of gas per day, although the extent to which that demand will translate into actual consumption will depend on customer commitments, supply arrangements and the pace of industrial expansion.

The immediate priorities include securing the necessary regulatory approvals, completing environmental assessments, resolving right-of-way requirements, engaging host communities and finalising financing arrangements.

Equally important will be the establishment of dependable gas supply and distribution systems capable of delivering energy at prices industries can afford.

If implemented as planned, the project could strengthen the South-East’s industrial base, improve the investment climate and support employment across manufacturing, power generation and agro-processing.

For the SEDC and its partners, however, the defining test will be whether the investment agreement progresses into construction, whether the pipeline delivers gas within the proposed timeline and whether businesses across the region experience measurable improvements in energy access and productive capacity.

The ultimate promise of the project lies not simply in the kilometres of pipeline to be laid, but in the factories it can sustain, the enterprises it can attract and the jobs it can help create across the South-East.