Experts and top government officials have offered insights on how Nigeria can convert its gas reserves into reliable electricity supply and broad-based economic growth.
This conversation comes against the backdrop of the recently launched Gas Master Plan by the Nigerian National Petroleum Company Limited (NNPC Ltd), which seeks to reset the country’s gas development trajectory
|
|
Speaking at a session themed “Unlocking Nigeria’s Gas Advantage for Power, Industry and Growth,” the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Saidu Mohammed, described Nigeria’s gas market as one of enormous potential but limited economic impact.
“Nigeria was still a dwarf concerning the micro gas market, and there lies the challenge. How can we use this source to develop not only the energy market, but also develop the catalyst and the propellant of all other sectors of the economy,” he said.
|
|
|
|---|
According to him, gas should be the foundation for growth across agriculture, industry and social development.
“Gas is not just an energy commodity. It is an economic enabler. Without gas, there is no electricity, without electricity there is no industrial growth, and without industrial growth, there is no economic development,” he added.
Mr Mohammed lamented Nigeria’s challenges with electricity generation despite decades of reforms, noting that output remains largely unchanged from levels achieved more than 20 years ago.
Stay Ahead with Premium Times
Follow us on Google News and never miss breaking stories, investigations, and in-depth reporting.
Add as a preferred source on Google
“About 25 years ago, we celebrated 4,500 megawatts of electricity generated. Twenty-five years later, we are still hovering around 5,000 megawatts or so,” he said.
He stressed that the challenge is not installed capacity but gas supply constraints and weak commercial arrangements.
“It is not because there is no generating capacity. There are up to 13,000 megawatts. But the fundamental question is every time you hear ‘no gas, no gas, no gas’.”
Questioning power producers, he added: “The question I always keep on asking the power plants is: how much gas did you buy that was not delivered? When we ask those questions, you hardly get an answer,” the NMDPRA boss said.
Missing link
At the heart of Nigeria’s gas-to-power challenge, Mr Mohammed argued, is the absence of firm commercial gas arrangements.
“If we don’t move to commerciality, we will not move those molecules called gas. Gas is a commodity that is sold before you even start drilling for it,” he explained.
Without guaranteed buyers, he said, producers have little incentive to invest.
“If there is no buyer for gas, you don’t look for it. You just cap your wells and move forward.”
Mr Mohammed said the Petroleum Industry Act (PIA) has introduced a framework aimed at correcting past distortions in gas pricing, supply and regulation.
“PIA has come and with it has come some transformation. It makes sure that we are placed on the right path to developing what we have as a resource called natural gas.”
Under the PIA, regulators are mandated to determine domestic gas demand requirements, which form the basis of supply obligations.
“That is the starting point of the domestic gas supply obligations.”
He added that differentiated pricing for power, gas-based industries and commercial users is essential for sustainable market growth.
Drawing from experience, Mr Mohammed stressed that gas infrastructure development is critical to unlocking industrial growth.
“Wherever you find a gas line, you will see industries springing up,” he said.
He cited the Lagos–Abeokuta corridor as evidence of how pipeline infrastructure attracts manufacturing investments.
“You just need to drive from Lagos to Abeokuta and see how many industries are springing up because there are pipelines carrying gas.”
According to him, similar industrial revival could occur nationwide if infrastructure development is accelerated.
Government’s gas-to-power push
Also speaking on Thursday, the Minister of State for Petroleum Resources (Gas), Obongemem Ekpo, said natural gas remains central to Nigeria’s transition to a cleaner, more secure and inclusive energy future.
“It is our bridge fuel, linking today’s realities with tomorrow’s low-carbon ambitions,” he said.
He highlighted infrastructure and policy measures being implemented to maximise gas sector efficiency.
“Today, gas fuels over 70% of Nigeria’s on-grid electricity generation. But to power our industrialisation ambitions, we are strengthening the entire gas-to-power chain,” the minister said.
According to him, government priorities include long-term, commercially viable gas supply agreements for power plants and sustained implementation of the National Economic Council-approved gas-to-power debt resolution framework.
Other measures include expansion of pipelines, processing plants and metering systems, deeper collaboration with the power sector to remove bottlenecks, and the establishment of a National Gas Infrastructure Command Centre to monitor and optimise gas infrastructure nationwide, as approved by President Bola Tinubu.
Tighter network discipline
Mr Mohammed warned that the era of informal gas supply arrangements is ending, stressing the need for discipline across the gas network.
“Gone are the days when gas will be supplied on best endeavour. Shrinkage must be defined within acceptable world-class operators’ limits.”
He added: “Shippers must be disciplined to take what they ask for, and what they ask for must be put in the right quantity and right quality.”
Addressing concerns around financing fossil fuel projects, the regulator said gas should not be viewed as incompatible with sustainability.
READ ALSO: Court registrar admits tampering with evidence in Ali Bello’s N10bn fraud trial, judge orders probe
“Gas is not contradictory to sustainability. It is a bridge fuel. As a matter of fact, gas is not only a transition fuel, it is the ultimate fuel.”
Nigeria, he said, must balance expanded gas utilisation with cleaner technologies. In closing, Mr Mohammed urged stakeholders to move beyond rhetoric and focus on delivery.
“Let’s move the potential to performance. We cannot continue to talk about reserves and potentials.
“If we get it right, gas will not only power the economy, it will shape the development of this great nation,” he said.
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.
More News
![Governor Hope Uzodimma [PHOTO CREDIT: Hope Uzodimma]](https://i0.wp.com/media.premiumtimesng.com/wp-content/files/2024/08/454285716_18037047623021211_7123298632879541231_n.jpg?fit=1440%2C971&ssl=1)
