Future Cities Need Smart Infrastructure: How the VI–Lekki Natural Gas Pipeline Project Is Powering a New Urban Economy.

Lagos is expanding at a staggering pace. Every day, nearly 3,000 people arrive in the city, drawn by its reputation as a place of boundless opportunities. By 2030, African megacities like Lagos are projected to drive more than 60% of Africa’s GDP growth, a powerful reminder of how central this megacity is to the continent’s economic future. 

While this may sound exciting, growth comes at a cost. The World Bank estimates Nigeria loses $26 billion annually to unreliable electricity. This is not an abstract figure; it represents business failures arising from lost productivity due to downtime, and a higher operating cost driven by dependence on diesel.

The reality is clear. Africa’s most populous city runs on ambition, but risks slowing under the weight of its energy gaps. Unless it builds resilient systems to match its growth, the city’s rise, and by extension Nigeria’s economic story, may not achieve its lofty growth aspirations on time. 

Natural Gas Pipeline as an Urban Enabler

Every city that grows as fast as Lagos eventually runs into the same question: how do you power ambition at scale? 

For Lagos, one answer is beginning to take shape along one of its busiest growth corridors, the ongoing VI-Lekki natural gas pipeline. This huge infrastructure development stretching from Victoria Island through Lekki is the first dedicated line of its kind on the axis. 

Along this corridor, the tapestry is populated by hospitality giants, financial institutions, offices, real estate developments, schools, several small-scale enterprises, and manufacturers operating side by side. Until now, most have relied on insufficient grid power, expensive diesel generators, or makeshift independent power projects to meet their energy needs and keep their doors open. That model has been costly, environmentally unfriendly, and inefficient. The entry of a new pipeline development with the prospect of reliable and cleaner energy is a game-changer.

Eko Atlantic has already tapped into the initial five-kilometre segment, showing how early access to natural gas infrastructure can power world-class developments. Construction has now extended beyond Victoria Island to the Lekki expressway and will eventually connect to the proposed Lekki International Airport. For the first time, businesses and estates along this corridor will enjoy a direct connection to natural gas, transforming a long-standing energy bottleneck into a vital backbone for growth.

The Economic Multiplier Effect

The implications are bigger than lowering energy bills. Energy reliability is the most critical factor for companies considering expansion into Nigeria and, by extension, Lagos. Multinationals that cannot keep the lights on will look elsewhere, while local entrepreneurs who burn resources on diesel lose ground before they even start.

Access to natural gas flips the script, and it is a genuine game-changer. Lower costs mean longer business hours, more jobs, and new investments. Hospitals can reduce overheads and expand patient care, residential estates can guarantee power for residents, hotels and banks can focus on service delivery rather than energy management or its attendant logistics.

This is the multiplier effect at work: cheaper, cleaner, and more reliable power rippling outward into productivity, competitiveness, and investor confidence. For Lagos, a city that already accounts for more than 30% of Nigeria’s GDP, the VI–Lekki pipeline is more than infrastructure; it’s a national economic lever that strengthens resilience and unlocks sustainable growth.

Policy Alignment and SDG Impact

What makes this project even more significant is how seamlessly it aligns with Nigeria’s broader energy ambitions. The Federal Government’s “Decade of Gas” initiative seeks to position the country as a gas-powered economy, while the National Gas Expansion Programme prioritises natural gas as both a transition fuel and a growth driver. On a global scale, the project directly advances SDG 7 (Affordable and Clean Energy) and reinforces climate resilience strategies across Africa.

But alignment on paper is not enough. Utilisation is the true test. That is where Axxela, working in partnership with NNPC Gas Marketing Limited (NGML), comes in. While NGML owns the infrastructure, Axxela drives utilisation by building the pipeline connections and enabling end-user adoption. For over two decades, Axxela has demonstrated remarkable technical expertise in developing natural gas infrastructure across Nigerian cities, expertly navigating complex terrains and proving what an indigenous company can achieve through effective public-private collaboration. Together, this partnership delivers practical off-take pathways for industries, businesses, residential estates, and independent power plants, transforming access to cleaner, more reliable energy.

Vision Forward

So, what happens if this momentum continues? Imagine a Lekki corridor where businesses, SMEs, residential estates, and schools run on cleaner, more affordable natural gas, where data centres, logistics hubs, and manufacturing clusters thrive on reliable energy. This isn’t distant futurism; it’s a near-term reality if infrastructure expansion and utilisation continue to move in lockstep.

And Lagos is only the beginning. Axxela has already connected nearly every major industrial cluster on the mainland, from Ikeja to Ilupeju, Isolo, Apapa, Mile 2, and other cities across Nigeria. Now, with the Island in focus, the playbook is expanding significantly. If it works here, this model can be replicated across Nigeria and Africa, where urban growth and the need for sustainable energy solutions converge with natural gas as a transition fuel.

The VI–Lekki pipeline is a test case of how African cities can grow with resilience, competitiveness, and sustainability. It shows that when urban development, private capital, and smart energy planning converge, they can transform economies in the most remarkable manner.

For Lagos, the stakes couldn’t be higher. Its success will ripple through Nigeria’s growth story. Investors, financiers, regulators, and businesses should see this moment for what it truly represents: an investment in the nation’s future prosperity.