The $25 billion Nigeria-Morocco Gas Pipeline has moved a step closer to implementation after ECOWAS member states signed an intergovernmental agreement supporting the cross-border energy project.
The agreement, signed on Sunday in Freetown, Sierra Leone, provides a regional framework for developing the pipeline, which will transport Nigerian gas through 13 West African countries to Morocco and potentially Europe.
The Nigerian National Petroleum Company Limited and Morocco’s National Office of Hydrocarbons and Mines disclosed the development in a joint statement.
The agreement strengthens political support for a project expected to improve gas access, support industrial production and deepen energy integration across West Africa.
It could also give Nigeria another route to commercialise its vast gas reserves and expand exports beyond traditional markets.
Pipeline targets 30 billion cubic metres annually
The proposed pipeline will have the capacity to transport up to 30 billion cubic metres of natural gas each year.
About 15 billion cubic metres will be supplied to Morocco and European markets through an existing pipeline connecting Morocco to Spain.
The project will stretch approximately 6,900 kilometres across offshore and onshore routes, making it one of the world’s longest gas pipeline projects.
Nigeria and Morocco first agreed to develop the pipeline about a decade ago. Both countries have since expanded the project to include governments and energy institutions across West Africa.
NNPC and ONHYM said the feasibility study and Front-End Engineering Design phases have been completed.
The next major step will be the signing of an agreement between Morocco and Mauritania. Nigeria’s president is expected to attend the ceremony.
What Regional economies could gain from improved gas access
The project is designed to supply gas to participating countries for electricity generation, manufacturing, mining and other industrial activities.
Many West African economies continue to struggle with unreliable electricity and limited access to affordable energy. These constraints raise production costs and weaken the competitiveness of local businesses.
Supporters of the pipeline believe increased gas supply could help countries reduce power shortages, revive industries and attract new investments.
The project could also strengthen regional trade by connecting Nigerian gas reserves to markets along the West African coast.
For Nigeria, the pipeline represents an opportunity to earn more foreign exchange from gas while reducing the economy’s dependence on crude oil exports.
It could also support the country’s push to position gas as a transition fuel as governments seek lower-carbon alternatives to coal and petroleum products.
Financing could determine project timeline
Despite the latest agreement, funding remains one of the project’s biggest challenges.
The estimated $25 billion construction cost will require financing from governments, development finance institutions and private investors.
The project must also navigate different regulatory systems, security conditions and infrastructure requirements across the participating countries.
Cross-border coordination and the technical difficulty of constructing a pipeline of this scale have contributed to delays.
A final investment decision, which would confirm financing and allow full construction to begin, has not yet been announced.
In March 2024, former NNPC Group Chief Executive Officer Mele Kyari said the decision was expected before the end of that year.
The timeline was not met, reflecting the funding and coordination difficulties facing the project.
Nigeria has pursued the project through multiple agreements
Nigeria’s Federal Executive Council approved NNPC’s participation in a memorandum of understanding with ECOWAS in June 2022.
The agreement was designed to support the pipeline’s construction from Nigeria through West Africa to Morocco and Europe.
The new intergovernmental agreement builds on those earlier commitments and could help provide investors with greater regulatory certainty.
However, the agreement does not automatically trigger construction. The project’s sponsors must still secure financing, complete outstanding bilateral arrangements and reach a final investment decision.
Why This Matters to Nigeria
Successful implementation could transform regional gas trade and expand electricity access across participating countries.
It could also strengthen economic ties between Nigeria, Morocco, and Europe.
For Nigeria, the project offers a potential export route capable of generating revenue, attracting investment and supporting domestic gas development.
But the commercial benefits will depend on whether project sponsors can move beyond political agreements and secure the financing required to begin construction.
