*Promises To Utilise Gas Resources To Uplift Economy, Drive Industralisation
By Teddy Nwanunobi
Nigeria may have begun a gas revolution era, as President Muhammadu Buhari, on Monday in Abuja, launched ‘The Decade of Gas in Nigeria’, with a pledge that his administration would fully utilise the enormous gas resources in the country to uplift the economy and drive industrialisation.
Buhari, who set the tone for the development of the industry in the next ten years, noted that gas has the enormous potential to diversify Nigeria’s economy, given the country’s potential of about 600 trillion cubic feet of gas.
“The rising global demand for cleaner energy sources has offered Nigeria an opportunity to exploit gas resources for the good of the country. We intend to seize this opportunity,” Buhari said at the virtual Nigeria International Petroleum Summit (NIPS) 2021 Pre-Summit Conference and official launch of ‘The Decade of Gas’.
He told participants at the event that while his administration has prioritised gas development, and recorded remarkable progress, adding that it is well known that Nigeria is a gas nation with a little oil.
He, however, regretted that Nigeria has focused more on oil over the years.
“That is the paradox that this administration decided to confront when we declared the Year 2020 as ‘The Year of Gas’ in Nigeria.
“It was a bold statement to demonstrate the resolve of this administration that gas development and utilisation should be a national priority to stimulate economic growth, further improve Nigeria’s energy mix, drive investments, and provide the much-needed jobs for our citizens in the country.
“Before the declaration of Year 2020 as The Year of Gas, this Administration had shown commitment to the development of Nigeria’s vast gas resources and strengthening of the gas value chain by reviewing and gazetting policies and regulations to enhance operations in the sector as encapsulated in the National Gas Policy of 2017.
“Our major objective for the gas sector is to transform Nigeria into an industrialized nation with gas playing a major role and we demonstrated this through enhanced accelerated gas revolution,” he said.
Enumerating what his administration has done to energise the sector, Buhari said the development of gas infrastructure has commenced along with the domestic utilisation of LPG and CNG, as well as the process of commercialising gas flares, development of industrial and transport gas markets, and increasing gas to power.
“We also kick started other policies and projects like the National Gas Expansion Programme, Autogas Policy and the construction of the 614km Ajaokuta-Kaduna-Kano gas pipeline.
“After a thorough review of these laudable achievements and successes in the gas space, we acknowledge that Nigeria still has more work to do in the gas space.
“This has led the Federal Government to begin a more proactive push towards gas development. This initiative will ensure further optimal exploitation and utilisation of the country’s vast gas resources,” he added.
Buhari, who commended the collaboration of the Federal Ministry of Petroleum Resources, Nigerian National Petroleum Corporation (NNPC) and the Nigeria LNG (NLNG) Limited to actualise the dream of transforming Nigeria with its massive gas resources, described the NLNG as the Federal Government’s arrowhead in the reduction of gas flaring in Nigeria.
He reminded the participants that the NLNG, which contributes about one per cent to the Gross Domestic Product (GDP), has generated $114 billion in revenues over the years, $9 billion in taxes, $18 billion in dividends to the Federal Government and $15 billion in Feed Gas Purchase.
Buhari noted that these achievements were accomplished with 100 per cent Nigerian management, and 95 per cent Nigerian workforce, and also applauded the NLNG for winning the award for outstanding business strategy in 2020, for going ahead with the Train 7 during the global pandemic.
“The Ministry of Petroleum Resources and NNPC are, in various regards, setting the pace.
“I would like to charge all other relevant MDAs (ministries, departments and agencies) on the need to partner with the international oil companies, the indigenous oil companies and financial institutions to actualise the dream of fully utilising our gas resources to uplift our economy,” he said.
Buhari also used the occasion to confirm that Nigeria will host the 4th International Petroleum Summit in Abuja later this year.
He invited the delegates at the NIPS Pre-Summit to attend the flagship event of the Ministry of Petroleum Resources.
“That will, once more, allow us to engage our partners and friends from around the world, exchange ideas and policy options and set the tone for the industry in the next few years,” he added.