The House of Representatives has approved the second reading of a bill to overhaul the regulatory and fiscal framework of the West African Gas Pipeline (WAGP) project.
Sponsored by Hon. Francis E. Waive, Hon. Babajimi Benson, and Hon. Yusuf Rabiu, the proposed legislation, HB. 2744, seeks to amend the West African Gas Pipeline Project Act, No. 11 of 2005.
The primary objective of the amendment is to grant the West African Gas Pipeline Authority (WAGPA) the explicit power to implement a new licensing regime for all shippers utilizing the pipeline. Under the current 2005 Act, the regulatory landscape was primarily designed for the initial phase of the project.
However, with the transition to an “Open Access” system—allowing multiple third-party shippers to transport natural gas from Nigeria to Benin, Togo, and Ghana—WAGPA has identified the need for a more robust legal basis to license and regulate these operators. This move aligns Nigeria with other member states; Togo recently updated its laws in early 2026, and Benin completed its reforms in 2023.
On the economic front, the bill introduces significant fiscal adjustments designed to maintain the project’s competitiveness against alternative fuel sources. The legislation proposes an extension of the income tax holiday for project participants, providing a longer window of relief to encourage the massive capital reinvestment required for pipeline maintenance and expansion. Furthermore, the bill includes provisions to reverse or recalibrate the income tax rate for shippers. This strategic tax reduction is aimed at lowering the landing cost of gas in neighboring West African nations, thereby securing Nigeria’s position as the region’s primary energy hub.
The push for this amendment comes at a critical time. Nigerian Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, recently reaffirmed Nigeria’s commitment to the WAGP expansion, noting that Nigeria supplies over 68% of the gas currently flowing through the 678km subsea link.
Legislators and stakeholders believe that a modernized Act is essential for the proposed African Atlantic Gas Pipeline (AAGP) which aims to connect West African reserves to North African and European markets.
The House is expected to hold public hearings on the bill in the coming weeks, inviting input from the Nigerian National Petroleum Company (NNPC) Limited, the Federal Ministry of Works, and the West African Gas Pipeline Company (WAPCo).
