Group Executive Director (Strategy, Capital Projects and Portfolio Development), Dangote Industries Limited, Devakumar Edwin, has asked the Federal Government to put necessary infrastructure in place to develop Nigeria’s natural gas to make it a key driver of economic growth.
Edwin made the call at BusinessDay’s Energy Series 2020 held virtually. He said developing the value chain of gas resources world help put the country on the path of sustainable growth and transform it from an exporter of raw materials to an exporter of finished products.
The event was declared open by the Minister of State for Petroleum, Timipre Sylva, who stated that efforts were being put in place to deepen the oil and gas sector.
According to Edwin, a fully-developed gas industry would strengthen the petrochemical industry and expand the country’s export menu.
“This will boost the economy and solve the hydra-headed problem of unemployment in Nigeria,” he stated. Edwin continued: “Nigeria has the potential to be a major petrochemicals producer. Not much has been accomplished with respect to the effective exploitation and utilization of this resource.
“Other nations have liquefied their natural gas resources for export. In sub-Saharan Africa, we produce and export raw materials to other countries. Our products are refined or manufactured and exported back to the continent.
“We import almost all our petrochemicals. Fertiliser is also imported. If we focus on adding more value to natural gas and export the finished products, we will earn more foreign exchange.”
He said the focus of the company was on adding value to the country’s natural gas through Dangote Subsea Gas Pipeline Project, which is expected to unlock significant gas supply for industrial activities and reduce flaring in the country.
He noted that the Company’s pipeline project would make gas readily available for commercial use; nullify the need for future gas import; lead to diversification of Nigeria’s economy; increase government revenue (and meet demand for domestic petrochemical products); ensure an increase in FX from exports and create thousands of direct and indirect jobs.
He explained that gas pipeline will help feed the fertilizer plant, connect the Niger Delta to the Lekki Free Trade Zone (LFTZ and capture flared gases from offshore platforms in Nigeria for monetization. These, he said, will have immense impact on the economy.