Nigeria and Morocco are moving closer to finalising a $25 billion transcontinental gas pipeline project that could connect West African gas reserves to North Africa and European markets.

The proposed Nigeria-Morocco Gas Pipeline, also known as the African Atlantic Gas Pipeline, remains in the agreement and planning phase, with both countries currently working toward an intergovernmental framework that would define governance structures, regulatory alignment, and implementation responsibilities.

If completed, the project would rank among the largest energy infrastructure initiatives in Africa. It is expected to pass through several West African countries before reaching Morocco, where existing infrastructure connections to Spain could provide onward access to European markets.

The project comes as African countries seek new export routes for natural gas amid shifting global energy demand.

Current Status of the Agreement

The Nigeria-Morocco Gas Pipeline was first proposed in 2016 during discussions between Nigeria and Morocco. Since then, the project has evolved from a bilateral proposal into a broader regional initiative involving multiple West African countries.

Reuters and The Punch reported that Nigeria and Morocco are working toward finalising an intergovernmental agreement that would provide the legal and regulatory basis for implementation.

The proposed pipeline would stretch about 6,900 kilometres along the West African coast and pass through 13 countries, many of them members of the Economic Community of West African States (ECOWAS).

Speaking during a Nigerian delegation visit to Morocco, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said President Bola Tinubu remained committed to the project.

“President Bola Tinubu is passionate about this initiative and will do everything possible to ensure that we get to the end of it,” Ekpo was quoted by The Punch as saying.

According to officials involved in the discussions, the agreement is expected to address regulatory coordination, operational responsibilities, and cooperation among participating countries.

However, several aspects of the project remain unresolved. Final financing commitments have not been secured, and a final investment decision has yet to be reached. Detailed engineering, implementation scheduling, and construction timelines are also still pending.

Amina Benkhadra, Director-General of Morocco’s Office National des Hydrocarbures et des Mines (ONHYM), said the project would contribute to regional economic development by supporting electricity generation and industrial activity across West Africa, according to BusinessDay.

Nigeria’s economic impact

For Nigeria, the pipeline forms part of broader efforts to expand the country’s gas economy and diversify export channels beyond crude oil.

Nigeria holds one of the largest proven natural gas reserves in Africa, but infrastructure limitations and regulatory challenges have constrained export growth and domestic utilisation.

Gas exports have traditionally relied on liquefied natural gas (LNG), which depends heavily on maritime transport and international shipping conditions. Analysts say a transcontinental pipeline could provide Nigeria with an additional export route into North African and European markets.

The project could also reduce reliance on LNG exports alone by creating a fixed supply corridor connected to regional infrastructure.

According to Business Insider Africa, delays in major energy projects have already cost Nigeria billions of dollars in unrealised revenue.

The publication cited data from the Organization of the Petroleum Exporting Countries (OPEC), which showed that Nigeria’s crude oil production stood at 1.463 million barrels per day in March, below projections by the Nigerian National Petroleum Company Limited (NNPC Ltd) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Business Insider Africa reported that the country lost an estimated 33.6 million barrels in production during the first quarter, translating into approximately $3.4 billion in unrealised revenue at prevailing oil prices.

Analysts say expanded gas infrastructure could improve Nigeria’s export capacity while attracting long-term investment into processing, transmission, and power generation.

Beyond exports, the project could also have domestic economic implications. Increased gas infrastructure may support manufacturing, processing industries, and power generation in a country where electricity shortages continue to affect industrial productivity.

However, analysts note that these benefits will depend largely on implementation, regulatory consistency, and the pace of infrastructure delivery.

Morocco’s role as a transit hub

Morocco’s role in the project is closely tied to its geographic position and existing infrastructure connections to Europe.

Although Morocco is not a major gas producer, it is expected to serve as a transit corridor linking West African gas supplies to European markets.

According to North Africa Post, Morocco’s existing gas infrastructure connections to Spain could provide an entry point for exports into Europe.

The project could strengthen Morocco’s position as a regional gas transit hub.

At the Indonesia-Africa Forum in 2024, Moroccan officials described the pipeline as part of wider efforts to deepen energy cooperation between Africa and Europe.

North Africa Post reported that Morocco views the project as complementary to its broader energy strategy, which includes investments in renewable energy and regional infrastructure.

Industry analysts say Morocco’s Atlantic location and proximity to Europe could provide strategic advantages compared to alternative inland export routes.

Benefits for transit countries

The regional scope of the pipeline is expected to create economic opportunities for countries along the corridor.

In addition to exports, the project is expected to supply gas to domestic markets in participating countries. This could improve energy access and support industrial activity in parts of West Africa where reliable electricity remains limited.

Transit countries are also expected to benefit from infrastructure development and transit-related revenues linked to pipeline operations.

According to Amina Benkhadra of ONHYM, the project could support electricity generation and broader economic activity across the region.

Analysts say improved gas access could support sectors such as manufacturing, mining, and processing industries in participating countries.

The project may also strengthen regional coordination through ECOWAS by requiring regulatory cooperation among participating states.

However, experts caution that maintaining long-term coordination across multiple jurisdictions could present implementation challenges.

Financing and implementation risks

Despite growing political support, financing remains one of the biggest uncertainties surrounding the project.

At an estimated cost of $25 billion, the pipeline is expected to require funding from a combination of governments, international financial institutions, and private investors.

While discussions on regulatory coordination are ongoing, final financing commitments have not yet been secured.

According to Benkhadra, the project does not depend on a single final investment decision, but funding structures are still being developed.

Industry analysts say investors are likely to assess political stability, regulatory consistency, security conditions, and long-term market demand before committing capital.

Execution also presents logistical and operational challenges. Constructing a pipeline across multiple countries will require environmental approvals, land acquisition agreements, technical coordination, and long-term security management.

Large infrastructure projects across Africa have historically faced delays linked to financing constraints, political changes, and implementation setbacks.

The pipeline project is also likely to face competition from other proposed export routes, including trans-Saharan gas projects linking Nigeria to North Africa.

Analysts say governments and investors will likely compare the commercial viability, security risks, and long-term returns of competing projects before making major commitments.

Energy transition context

The project is developing at a time when global energy markets are undergoing a significant transition.

Natural gas is increasingly being presented by several African governments as a transition fuel capable of supporting development while reducing dependence on more carbon-intensive energy sources.

European countries have also intensified efforts to diversify gas supplies in response to geopolitical disruptions and energy security concerns.

Reuters reported that interest in alternative gas supply routes has increased attention on African gas infrastructure projects capable of supporting long-term supply stability.

However, long-term global energy policies are increasingly focused on reducing emissions and expanding renewable energy sources.

Analysts say this creates both opportunities and uncertainties for large-scale gas infrastructure projects such as the Nigeria-Morocco pipeline.

While demand for gas may remain significant in the medium term, future market conditions will likely depend on the pace of global energy transition policies and investment patterns.

Conclusion

The Nigeria-Morocco Gas Pipeline remains one of the most ambitious energy infrastructure projects currently under discussion in Africa.

Although negotiations on the intergovernmental agreement appear to be progressing, key questions surrounding financing, implementation, and long-term commercial viability remain unresolved.

For Nigeria, the project could provide an additional export route for natural gas and support broader efforts to expand the country’s energy economy. For Morocco, it could strengthen its role as a transit point between Africa and Europe.

Transit countries may also benefit from improved energy access, infrastructure development, and industrial opportunities linked to the project.

However, the pace of implementation, investor confidence, and regional coordination will likely determine whether the pipeline progresses beyond the planning stage.