Nigeria close to finalizing historic agreement to supply natural gas to South Africa

Nigeria is close to finalizing a historic agreement that would see it supply natural gas to South Africa, a move that could boost both countries’ energy security and economic development. In this post, we will explain what this deal means for the region and how it aligns with the goals of the African Continental Free Trade Area (AfCFTA). We will also share some tips on how to optimize your WordPress site for SEO using Yoast, a popular plugin that helps you rank higher on search engines.

The gas deal between Nigeria and South Africa is expected to be signed in early 2024, after years of negotiations and feasibility studies. The agreement would involve the construction of a 5,660-kilometer pipeline that would transport gas from Nigeria’s Niger Delta region to South Africa’s industrial hub of Gauteng, passing through several other countries along the way. The pipeline would have a capacity of 12 billion cubic meters per year, enough to meet about 20% of South Africa’s gas demand.

The benefits of this deal are manifold. For Nigeria, it would provide a new source of revenue and diversify its economy away from oil dependence. It would also reduce gas flaring, a practice that wastes valuable resources and contributes to greenhouse gas emissions. For South Africa, it would reduce its reliance on coal and diesel for power generation, lowering its carbon footprint and electricity costs. It would also create jobs and stimulate industrial growth along the pipeline route.

The deal is also in line with the vision of the AfCFTA, which aims to create a single market for goods and services across the continent. The AfCFTA, which came into force in January 2021, covers 54 African countries and has a potential market of 1.3 billion people. By facilitating trade and investment, the AfCFTA could boost Africa’s GDP by $450 billion and lift 30 million people out of extreme poverty by 2035, according to the World Bank.

One of the challenges of the AfCFTA is to harmonize the regulatory frameworks and standards of the different countries involved.