Business
New Plant Boosts Apex African Gas’ Production Capacity
The recently commissioned 70-tonnes-per-day Air Separation Unit plant in Lagos, has upscaled Apex African Gas Nigeria Limited production capacity to 110 tonnes per day, thus positioning it among the largest domestic industrial gas producers in Nigeria.
It was gathered that this development would help reduce Nigeria’s dependence on imported gases and strengthen the supply of industrial and medical gases to the healthcare, construction, manufacturing, oil and gas, and food processing sectors.
During the inauguration on Thursday, the Chairman of Apex African Gas, Najimu Adeniji, said the facility will produce oxygen, nitrogen and argon for critical industries across the country.
“This plant does not just produce oxygen. We also produce nitrogen and argon, which are used in industries. Oxygen, we can change the configuration to produce more oxygen if we want or more nitrogen,” Adeniji said.
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He noted that nitrogen remained a key product for the oil services industry, particularly in Port Harcourt and its environs.
“Our main customers for nitrogen are in the oil service industries in Port Harcourt and the environment. They also represent a significant part of our revenue. These are gases that would have been imported if we were not producing locally. So it saves us the foreign exchange costs that we are able to produce here,” Adeniji added.
The chairman, however, identified power supply as a major challenge affecting production costs, explaining, “If we can get a power supply from the national grid, the cost will be significantly cheaper. So what we would like is for the government to provide for us, for the benefit of the general populace, cheaper power so that the cost of oxygen to the general public will be much cheaper than it is.”
On his part, the General Manager of Apex African Gas, Charles Allam, said the company remained committed to supporting hospitals with oxygen despite rising operating costs.
“While the major concern now is power, we are working closely with the government, especially with the Presidential Initiative for Unlocking the Healthcare Value Chain, to see how we can save on power. But for now, we are trying our best,” Allam said.
“We are supporting all the medical hospitals and the federal hospitals with oxygen at the best rate and at the best cost. Some of them, as we mentioned in the ceremony, are free. We are trying. There are challenges, but with God’s help, we will overcome them,” he added.
According to Allam, the project involved an investment of more than N10bn and was designed to serve Nigerians across multiple sectors of the economy.
“What we have done so far belongs to all Nigerians. It belongs to Nigeria, and it is for the benefit of all Nigerians. So, altogether, we can make a big difference for this country,” Allam said.
Guest of Honour, Senator Tokunbo Abiru, described the project as a demonstration of investor confidence in Nigeria and a major contribution to industrial development and job creation.
“It is with great pleasure that I join you today at the formal launch of Apex African Gas Nigeria Ltd., a company whose emergence further strengthens Nigeria’s industrial, healthcare and energy value chain,” Abiru remarked.
“To me, this occasion is more than the unveiling of a company. It is the celebration of enterprise, innovation and confidence in the future of our nation. Apex African Gas represents the kind of indigenous capacity we must continue to encourage in Nigeria,” he added.
Abiru said the investment will support local production and reduce reliance on imports while improving access to critical industrial and medical gases.
“The importance of industrial and medical gases in healthcare, manufacturing, construction, oil and gas and other strategic sectors cannot be overstated. The contribution of this company, therefore, is to improve access to medical oxygen and support industrial productivity,” Abiru said.
He also commended the company’s parent group for its contribution to employment generation, noting that the investment could create additional jobs.
Partners of the firm, including the Technical Director of FHI 360, Dr Kenny Ewulum, commended the inauguration, stressing that Apex had played a vital role in improving access to liquid medical oxygen across Nigeria.
“To need liquid oxygen in the country is one thing, but to have access is a big challenge. That’s where Apex Gases came, I would say, to the rescue for the country to be able to access liquid medical oxygen across the country,” Ewulum stated.
“Currently, we are being supported by Apex Gases to provide liquid medical oxygen across the country. We hope that we are going to be expanding that access to contribute to universal access to medical oxygen,” he added.
Also speaking, the Director of Medical Services, Nigerian Navy, Surgeon Commodore Momoh Salihu, said the company had supported the Nigerian Navy Reference Hospital, Ojo, with free oxygen supplies during and after the COVID-19 pandemic.
“Today’s event represents far more than the inauguration of a new industrial facility. It is a testament to vision, innovation and confidence in Nigeria’s capacity to build, produce and compete. This investment is no doubt a significant contribution to national development,” Salihu said.
“Recently, Apex Gas has been a valued partner in healthcare delivery since the COVID-19 pandemic, when the company generously supplied oxygen gas free of charge to the Nigerian Navy Reference Hospital, Ojo. More importantly, this support continued beyond the pandemic, reflecting a genuine commitment to healthcare delivery and community well-being,” he added.
Representing the National Coordinator of the Presidential Initiative for Unlocking the Healthcare Value Chain, Technical Adviser to the initiative, Eniitan Tejuoso, described the new facility as a milestone for Nigeria’s healthcare and industrial sectors.
“Medical oxygen sits squarely at the intersection of these priorities. It is more than an industrial product. It is an essential medicine. Every investment that strengthens our ability to produce medical-grade oxygen locally strengthens the resilience of our health system and our capacity to save lives,” Tejuoso said.
“With this new 70-tonne per day air separation unit, Apex African Gas Nigeria has established itself as the country’s leading producer of liquid oxygen. This is not only a milestone for Nigeria, but a significant achievement for the wider West African region,” she added.
Senior Director, Child Health and Infectious Diseases, Dr Chizoba Fashanu, who represented the Country Director of the Clinton Health Access Initiative, Dr Olufunke Fasawe, also commended the company for its role in strengthening Nigeria’s oxygen supply chain and supporting healthcare facilities, particularly in underserved communities.
Apex African Gas was founded in 2004. The company produces oxygen, nitrogen, argon, carbon dioxide, hydrogen, helium and specialised gas mixtures in both liquid and gaseous forms. The company serves healthcare institutions, manufacturers, oil and gas operators, food processors, construction firms and other industrial users across Nigeria.
The company said the new facility will expand storage capacity, improve supply reliability and support long-term growth in sectors where uninterrupted access to industrial and medical gases remains critical.
Nigeria’s economic fortune is benefiting from the Middle East crisis, as the impact of capital inflows from stronger crude oil earnings has seen her foreign reserves climb to record $53.1 billion, beating the $51.04 billion year-end target.
Data available on the Central Bank of Nigeria’s (CBN) website indicated that the reserves closed at $53.1 billion on August 24, which is the highest level in almost 18 years.
Any analyses of the growth shows that the difference in reserves position places the Nigerian economy in good stead, because it can cover over 12 months import.
It is noteworthy that Nigeria’s external reserves fuel the CBN’s capacity to support the local currency and meet external obligations, have continued to rise steadily, since the face-off between the United States and Iran.
Further analysis of the data displayed by the CBN showed that the liquid portion of the external reserves stood at $52.5 billion.
Biztellers reports that Brent crude traded around $87 per barrel, within the week, well above Nigeria’s 2026 federal budget benchmark of $64.85.
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With the Middle East crisis not showing signs of abating, analysts believe the price rebound would largely bolster Nigeria’s fiscal revenues.
The line of thought is popular among those who know, because as a crude oil exporter, Nigeria will continue to earn more petrodollars, which they argue would support the domestic currency – naira’s stability, while pumping the volume of external reserves.
In its economic projections for 2026, the CBN targeted stronger oil earnings, foreign exchange market reforms and improved external capital inflows to achieve the year-end reserves projection.
According to analysts, the current reserves position reinforces the steady growth in Nigeria’s external buffers.
The founder/Chief Executive Officer of the Centre for the Promotion of Public Enterprise (CPPE), Dr Muda Yusuf, earlier hinted at a positive outlook for Nigeria’s external reserves as he does not see anything derailing the forex and fiscal reforms that have brought about stability and improvement in external reserves, as reported by The Nation.
Yusuf said: “Well, the outlook for me is positive because I don’t see anything derailing these forex reforms, fuel subsidy etc. It is these reforms that have brought about stability.”
The CBN data further showed that Nigeria’s external reserves have maintained a steady upward surge in recent months.
The reserves started June at $49.80 billion and crossed the $50 billion mark by June 5, reaching $50.12 billion.
On June 15, reserves had increased further to $50.81 billion before rising to the current position. The reserves stood at $51.9 billion on July 31, and continued.
The sustained increase reflects stronger foreign exchange inflows and improved liquidity conditions in the country’s external sector.
The CBN Governor, Olayemi Cardoso, said: “This strong buffer continues to reinforce investor confidence in the Nigerian economy and support exchange rate stability.”
The CBN’s decision to clear over $7 billion unsettled FX backlogs raised investors’ confidence in the economy, supporting dollar inflows and foreign reserves accretion, Cardoso added.
The CBN boss had explained that although he had no idea where the fund for the backlog clearance would come from, when he assumed office, he believed it was the right thing to do, and gave investors his word.
He said: “Credibility is at the heart of any central bank. If you don’t have credibility, people do not trust you and they do not invest in your economy. When I took office, I made a promise we would pay the backlog, the verifiable backlog of monies that were owed by Nigeria to third parties.
“And it was, at the time, estimated at over $7 billion US dollars. And to be honest with you, I had no idea how I was going to do it, but I just felt it was not something to be negotiated.”
Cardoso explained that Nigeria needed to ensure that its integrity is maintained. Analysts believe the higher reserve level could enhance the CBN’s capacity to support exchange rate stability and meet external obligations.
Up to 30% equity in the upcoming Dangote Refinery in Kenya, has been placed on the table for East African countries, which makes about $1.5 billion worth of the planned project available to regional investors.
David Ndii, Kenyan President William Ruto’s economic adviser, disclosed this on Thursday at a capital markets forum in Nairobi, where he said Kenya would take a 10% stake while Ethiopia and Rwanda had also expressed interest.
Dangote’s planned refinery is expected to be developed in Lamu, a coastal town in southeastern Kenya, though the project was initially proposed for Tanga in Tanzania.
According to the billionaire industrialist, the decision to move the proposed location to Kenya was informed by commercial and technical considerations.
Ndii disclosed that Kenya’s proposed 10% participation would be worth approximately $500 million.
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He said the combined regional participation could amount to about $1.5 billion, with Dangote prepared to support the project if some participating countries are unable to commit as crude off-takers.
“The total for the region is about $1.5 billion,” he said. “I don’t actually see a challenge in doing that, and if some of them are not off-taking we will backstop.”
The proposed regional participation would give East African countries a direct equity interest in a major energy infrastructure project while potentially securing access to refined petroleum products for participating markets.
The United Nations Geoscheme (UNG) for Africa defines Eastern Africa as comprising 18 sovereign countries, alongside two French overseas territories, meaning the proposed 30% allocation could potentially involve a broader regional investor base beyond Kenya, Ethiopia and Rwanda.
The Nigerian authorities have been called upon to focus on strengthening domestic refining capacity.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) made the call in a communiqué issued at the end of the three-day PENGASSAN Energy and Labour Summit (PEALS 2026).
It stressed the need for adequate protection for refineries operating in the country.
The PENGASSAN said Nigeria must reduce the economic inefficiency of exporting crude oil while importing significant volumes of refined petroleum products by creating an environment that supports domestic refining and other value‑adding activities.
The communiqué, signed by the union President, Festus Osifo, and General Secretary, Jerry Amah, stressed the need to protect refineries, including Dangote Refinery and Waltersmith Refinery.
The association said the expansion would enable Nigeria to retain a greater share of the value generated from its petroleum resources while creating jobs, conserving foreign exchange and stimulating industrial development. PENGASSAN linked the growth to wider opportunities in petrochemicals, gas processing and other downstream activities.
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The communiqué reads in part: “The summit called for sustained policies and investments to expand Nigeria’s domestic refining capacity and reduce the economic inefficiency of exporting crude oil while importing significant volumes of refined petroleum products. The need to protect refineries (such as Dangote Refinery, Waltersmith Refinery, etc.) within Nigeria’s jurisdiction was emphasised.
“Nigeria must progressively retain more value from its petroleum resources through domestic refining, petrochemicals, gas processing and other value‑adding activities capable of generating employment, conserving foreign exchange and stimulating industrial growth.
“Ultimately, the strength of Nigeria’s oil and gas industry will not be measured merely by the resources beneath the ground, but by the projects delivered, the value created, the Nigerian capabilities developed, the decent jobs sustained and the prosperity generated for the Nigerian people.”
The association also warned that abrupt policy changes, overlapping mandates, repetitive approvals and conflicting directives increase the cost of doing business and weaken Nigeria’s competitiveness for global energy capital.
The PENGASSAN called for faster regulatory approvals, digitalised processes and clearer timelines, arguing that the effectiveness of regulation should be measured by its impact on investment, production, government revenue, job creation and national value rather than simply by the number of licences or approvals issued.
On gas, the PENGASSAN advocated an integrated approach to developing Nigeria’s more than 215 trillion cubic feet of proven reserves, including investments in processing facilities, pipelines, storage, LNG, LPG and CNG infrastructure. It said gas should be deployed more aggressively for power generation, manufacturing, transportation, fertiliser and petrochemical production.
The association also urged stronger protection of workers’ rights, occupational safety and employment during mergers, acquisitions, divestments and asset transfers, saying sustainable investment requires skilled and fairly treated workers and that increased production must not come at the expense of workers’ lives and wellbeing.
In addition, the PENGASSAN said the next phase of Nigeria’s petroleum industry must focus on execution with measurable targets and clearly assigned responsibilities to ensure policies translate into projects, production, investment and sustainable employment.
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