Nigeria is preparing to inaugurate a governance authority in Abuja to drive the next phase of the Nigeria-Morocco gas pipeline, a project estimated to cost between $25 billion and $26 billion. Morocco is expected to establish a counterpart project company in Casablanca, as the Nigerian National Petroleum Corporation Limited (NNPC) intensifies its pursuit of foreign capital to resolve funding bottlenecks that have slowed the scheme.

The two institutions form the core of the project's next institutional step. Attracting investors and preparing for a final investment decision remain the stated priorities, according to NNPC's leadership. The scale of the undertaking — its estimated cost, the length of the route and the number of countries involved — makes the financing structure decisive for advancing from preparation to construction.

NNPC Group CEO Bashir Bayo Ojulari said the company was in talks with several investors to arrange financing for the pipeline, which Nigeria is developing jointly with Morocco's National Office of Hydrocarbons and Mines (ONHYM). Abu Dhabi National Oil Company (ADNOC) is among the potential partners, with discussions reportedly underway, Ojulari said.

ADNOC's inclusion does not signal a commitment. It confirms only that the Emirati group is among the parties Nigeria has approached as it works to raise the required capital.

Why is ADNOC a plausible partner?

ADNOC's potential interest tracks its international investment strategy. In November 2024, the group established XRG, an international investment company focused on natural gas, chemicals and low-carbon energy. Its gas business is built to assemble an integrated portfolio of assets serving global demand.

Recent transactions illustrate that trajectory:

• In March 2025, XRG completed the acquisition of a 10 per cent stake in the Area 4 concession in Mozambique's Rovuma Basin, marking ADNOC's first entry into the Mozambican gas market.
• In January 2026, XRG acquired an additional 7.6 per cent stake in Trains 4 and 5 of the Rio Grande LNG project in Texas, on top of an initial indirect 11.7 per cent growth interest in the terminal's first three trains.
• In July 2026, ADNOC launched a platform combining the LNG marketing activities of ADNOC Gas, XRG and ADNOC Trading, aiming to lift marketable LNG volumes to 47 million metric tons per year by 2035.

These holdings give the group a presence across several stages of the gas value chain — from resource access to liquefied natural gas production and sales. That experience may prove relevant to a cross-border project such as the Nigeria-Morocco pipeline.

How would the pipeline be built?

NNPC is weighing a phased approach that would build partly on the existing West African Gas Pipeline (WAGP), which already connects Nigeria to Benin, Togo and Ghana. The company intends to extend that infrastructure toward Sierra Leone before developing the rest of the corridor in stages.

The approach is designed to demonstrate the network's operational capabilities and generate revenue gradually. It does not, by itself, guarantee the feasibility of the entire pipeline.

What progress has already been made?

Several preparatory stages are complete. Front-end engineering design (FEED) studies are finished, route surveys have been carried out, and environmental and social assessments are well advanced.

In July 2026, member states of the Economic Community of West African States (ECOWAS) signed an intergovernmental agreement, marking progress toward establishing the project's institutional framework.

The pipeline is expected to stretch approximately 6,800 to 6,900 kilometers across 13 African countries, with an annual transport capacity of 30 billion cubic meters of gas. It is designed to serve regional markets and to provide access to Europe through a connection to the Maghreb-Europe pipeline between Morocco and Spain.

What comes next?

For NNPC and ONHYM, the immediate task is converting institutional and technical progress into firm financial commitments. The next steps are the establishment of the project company in Casablanca and the governance authority in Abuja, followed by investor mobilization and preparation for a final investment decision.

The route's length, the number of participating states and the $25-26 billion cost estimate make the financing structure the decisive variable between preparation and construction.

The governance office in Abuja is where that decision will now be assembled.