Your association has been championing a robust gas policy for Nigeria. What are your thoughts on the passage of the PIB as it relates to the growth of the nation’s hydrocarbon industry?
The passage of the PIB into law would encourage more investments into Nigeria’s energy sector, especially with our vast proven gas reserves, now standing at over two trillion cubic feet. It promises to usher in a well-defined governance structure in interplay with policies of the government and the market size which is very encouraging for both local and international investors. It also encourages more friendly Investor- Host Community relationships.
How prepared is Nigeria for the envisaged post-oil economy and prospects of same for the mini structure of this economy?
Nigeria is just getting into the early stages of gas-based industrialization, which will translate to improvement in power generation, fertilizer, methanol, petrochemicals, textile, agro, and mineral raw materials processing into finished products, and general improvement in manufacturing across all sectors of the economy. The prospect of gas-based industrialization is huge. It also promises to improve Nigeria’s foreign exchange earnings.
The consumption of cooking gas is still low despite the huge deposit. Why is Nigeria in a gas consumption deficit?
At about 5kg per capita consumption, indeed the consumption is low, compared to even African standards, where other countries like Senegal and South Africa, rank higher by per capita consumption. But we are encouraged by the sustained growth in the industry championed mainly by the private sector. There are several reasons responsible for the low level of LPG consumption (e.g. High first time user cost of the initial purchase of LPG cylinder – starter kit, myths about LPG safety and apathy passed from previous generations perception of LPG as being expensive and as such meant only for the rich, and the generally low awareness of its multiple applicable uses and benefits. This will change soon as the FGN is committed to the growth of the gas industry through its National Gas Expansion Plan (NGEP), in which programmes and activities include improved awareness sensitization. The Federal government plans to improve Nigeria’s domestic energy mix with a target of 40% penetration and conversion to LPG usage amongst Nigerians, which is equivalent to over 3 million tons of cooking gas (approx. three times current consumption). The Autogas portends a minimum of four million tons market, where LPG is also going to play a major role.
