The Federal Government has launched a $100 million South-East gas pipeline project, with the SEDC committing $3 million to improve energy access, attract investment and create jobs across five states.
The Federal Government has commenced plans for a $100 million gas distribution pipeline project across the South-East, aimed at boosting industrialisation, attracting private investment and creating jobs in Enugu, Anambra, Imo, Abia and Ebonyi states.
The 400-kilometre pipeline project is being driven by the South East Development Commission (SEDC) in partnership with GasSync, with the commission committing an initial $3 million towards its development.
The investment agreement was signed on Tuesday at the South-East Gas Infrastructure Investment and Project Development Ceremony held at Hotel Presidential, Enugu.
The proposed pipeline network is expected to connect gas resources to industrial and commercial centres across the five states. Project promoters have identified approximately 150 prospective customers, with projected demand estimated at 254 million standard cubic feet of gas per day.
President Bola Ahmed Tinubu, represented by the Deputy Speaker of the House of Representatives, Benjamin Kalu, described the project as a strategic investment that would strengthen manufacturing, improve energy access and unlock economic opportunities across the region.
Tinubu said the initiative aligned with his administration’s commitment to developing an integrated regional economy, stressing that gas infrastructure should serve industries and markets across state boundaries.
He noted that the project could strengthen manufacturing in Aba, support industrial clusters in Nnewi and Onitsha, attract businesses to Enugu, expand agro-processing in Ebonyi and connect Imo’s gas resources to the wider regional economy.
According to the President, the objective extends beyond supplying existing industries to creating conditions for new factories, industrial parks and investments that have been constrained by unreliable energy supply.
“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.
President Tinubu described the SEDC as an institution established to deliver measurable development outcomes and urged the commission to assess its performance through the investments it attracts, infrastructure it facilitates, opportunities it creates and improvements it delivers to people’s lives.
He also highlighted the South-East Vision 2050 development framework, supported by Vice-President Kashim Shettima and the region’s governors, as a foundation for coordinated economic growth.
The President cited the approval of the South-East Investment Company as another step towards attracting private capital into strategic development projects, noting that public funds alone could not finance every development ambition.
He commended the SEDC for committing $3 million to the gas project and developing a framework to mobilise additional investment from state governments, institutions and private investors.
Tinubu said the project’s initial funding requirement was approximately $100 million, emphasising the importance of public-private partnerships in delivering sustainable infrastructure.
He urged the commission and its partners to maintain transparency, commercial discipline, environmental responsibility, community engagement and strict safety standards throughout implementation.
The President also called for clear implementation timelines, measurable milestones and regular progress reports, saying the project’s success should be judged by its ability to attract investment, revive industries, create jobs and improve living standards.
Enugu State Governor, Dr. Peter Mbah, commended Tinubu for establishing the SEDC, describing the commission as a critical institution for advancing the South-East’s industrialisation ambitions.
Mbah said the investment agreement marked the beginning of the project’s investment process and represented progress towards the region’s long-standing aspiration for a common market and coordinated industrial development.
He expressed satisfaction that the initiative was advancing less than 13 months after he publicly advocated the idea, praising the commission for adopting a financing model that combines public resources with private investment.
The governor said the project could create employment opportunities that would enable young people to build their futures in the South-East rather than migrate elsewhere in search of jobs.
He assured the commission and its partners that the five South-East states would support the project, particularly by accelerating right-of-way arrangements and environmental impact assessment approvals.
Mbah also stressed the importance of ensuring that construction progresses across the region without unnecessary delays.
Imo State Deputy Governor, Lady Chinyere Ekomaru, who represented Governor Hope Uzodimma, said the project was particularly important to Imo because of its substantial natural gas resources.
She noted that the initiative came at a time when companies were seeking to become gas offtakers from the Assa North–Ohaji South development.
Ekomaru commended the Federal Government and the SEDC for the investment, while calling attention to the potential economic benefits for the region.
Anambra State Deputy Governor, Dr. Onyekachukwu Ibezim, representing Governor Chukwuma Soludo, said the project’s success would ultimately depend on its impact on residents and businesses.
He urged communities along the proposed pipeline route to cooperate with project promoters, stressing that the region’s gas resources could support industrial expansion if properly developed.
Ebonyi State Deputy Governor, Mrs Patricia Obila, representing Governor Francis Nwifuru, also pledged the state government’s support.
Obila said inadequate energy supply had contributed to the decline of businesses and industrial facilities across the region, expressing hope that improved gas access would help factories resume operations, increase production and create employment.
Permanent Secretary of the Federal Ministry of Regional Development, Dr Mary Ogbe, said the SEDC was developing initiatives intended to improve living standards across the South-East.
She assured the governors that the commission would complement their development programmes and encouraged investors to take advantage of emerging opportunities.
SEDC Managing Director and Chief Executive Officer, Mark Okoye, disclosed that the commission had completed technical, financial and legal due diligence before committing funds to the project, which was approved by its governing board.
Okoye said the commission was targeting aggregate regional investment participation of up to $30 million, including its initial $3 million commitment, as it works to mobilise additional private capital.
He said the project aligned with the commission’s industrialisation agenda and its objective of developing infrastructure that would benefit the entire region.
Representing GasSync, the project promoter, Callistus Mba, explained that the pipeline would connect nearby gas resources to industrial users across the five states, reducing dependence on road transportation of compressed natural gas (CNG) and liquefied natural gas (LNG).
Mba said the proposed network would originate from 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.
He disclosed that construction would begin at two locations simultaneously to accelerate delivery, following concerns 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,” he said.
Mba said the company had identified approximately 150 prospective customers, including manufacturing companies, power-generation facilities and agro-processing businesses, and was engaging industries to secure demand for the gas.
He identified Geometric Power in Abia State as one of the companies with which discussions were underway, adding that the pipeline could support the revival of inactive industries in Enugu and the development of agro-processing facilities in Ebonyi.
On implementation, Mba said procurement activities had commenced, funding arrangements were progressing towards financial close, and preparations for engineering, procurement and construction were underway.
He projected that construction would begin in the first quarter of 2027, with the first gas delivery expected in the second quarter of 2028, subject to the completion of the necessary requirements.
Mba identified regulatory approvals, right-of-way arrangements, community engagement and coordination between federal and state authorities as critical to meeting the proposed timeline.
He urged the governors and relevant institutions to facilitate permits and maintain cooperation with host communities along the pipeline route.
When completed, the project is expected to provide a regional gas distribution network capable of supporting manufacturing, power generation, agro-processing and other energy-intensive industries across the five South-East states.
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