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Tag: Gas

  • Rewiring the economy through gas

    Rewiring the economy through gas

    • By Oladele Akinjo

    Nigeria sits on over 206 trillion cubic feet of gas, yet industries still burn diesel and households rely on imported fuels. The paradox underscores why the Midstream and Downstream Gas Infrastructure Fund (MDGIF)—created under Section 52 of the Petroleum Industry Act (PIA) 2021—is one of the country’s most consequential policy instruments. Its mandate: finance pipelines, processing plants, and networks that can make gas the backbone of the economy.

    After a slow start, momentum is building. In 2024, MDGIF established its Governing Council, appointed technocrat Oluwole Adama as Executive Director, and deployed an initial N122 billion ($74m) across six firms. By August 2025, that number had grown to 16 companies, spanning compressed natural gas (CNG) stations, LPG terminals, and mini-LNG plants. Some projects are already operational; others—like Ibile Oil & Gas’s 15 CNG stations and a mini-LNG plant in Delta—are due in 2025/26.

    This pipeline of projects aligns with Nigeria’s “Decade of Gas” agenda. The logic is straightforward: cheaper piped gas and CNG reduce manufacturers’ costs, displace diesel, and strengthen import substitution. Fewer fuel imports ease pressure on foreign reserves, while flare gas capture cuts emissions and boosts Nigeria’s ESG credentials.

    The timing is critical. Following subsidy removal in 2023, Nigerians faced inflationary shocks as fuel prices spiked. The government responded with the Presidential CNG Initiative (PCNGi), designed to roll out nationwide CNG buses and filling stations. MDGIF is effectively the supply-side engine behind this demand push. By financing CNG mother stations and LNG infrastructure, the Fund is enabling the delivery of cheaper, domestically sourced fuel.

    The payoff is twofold: CNG adoption reduces FX demand for imported petrol and diesel, while affordable alternatives help cushion subsidy removal’s social impact. In other words, gas is no longer just an energy play—it is an economic stabilizer.

    The N122 billion deployed in 2024 was not designed for spectacle but for replication—proof that MDGIF can underwrite gas infrastructure economics under Nigerian conditions. Each deal acts as an index case, showing that projects can move from concept to financial close and into operation.

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    This matters in a country where infrastructure often falls into the “pilot trap”—one-offs that fail to scale. By emphasizing standardized term sheets, transparent eligibility, and consistent monitoring, MDGIF can build a recognizable asset class for pension funds, insurers, and global infrastructure investors.

    For capital markets, credibility is measured by the company one keeps. That is why the MDGIF–Afreximbank Memorandum of Understanding (MoU), signed in September, is a watershed. It targets up to US$500 million over four years, blending Afreximbank’s senior debt with MDGIF’s equity.

    The true significance lies beyond the numbers. The MoU imports Afreximbank’s due diligence culture, global visibility, and rules-based risk approach—lowering Nigeria’s cost of capital. In an era where blended finance is the bridge between public ambition and private balance sheets, this is exactly how sovereign policy institutions gain credibility.

    Globally, the playbook is familiar. The UK’s Green Investment Bank catalysed offshore wind. India’s National Investment and Infrastructure Fund (NIIF) blended sovereign capital with private investors under strict governance. Canada’s Infrastructure Bank has mobilized blended capital for PPPs. MDGIF mirrors these models, with the potential to unlock Nigeria’s vast pool of pension and insurance assets.

    Institutional investors buy governance before they buy assets. MDGIF’s structure—a Governing Council for strategy coupled with a professional execution team—mirrors best-in-class models like NIIF and the U.S. DOE Loan Programs Office (LPO).

    Why does this matter? Because governance quality translates directly into lower risk premia. Stronger risk identification and standardized documentation compress investor spreads, making more projects viable. For a country grappling with high financing costs, this is a decisive edge.

    Nations don’t get rich by discovering resources; they prosper by reducing the friction between resources and productive use. For Nigeria, that friction is overwhelmingly midstream and downstream. MDGIF’s role is to remove it by financing the pipes and plants that industry elsewhere takes for granted.

    The payoff connects directly to everyday economics: Cheaper industrial energy lowers production costs for manufacturing and food processing. Reduced import bills save scarce foreign exchange for education, health, and capital projects. Increased domestic value capture deepens the tax base without punitive rates.

    Flare reduction improves Nigeria’s ESG profile and opens access to lower-cost green finance.

    Three markers will show MDGIF has matured from promise to proof:

    Consistent project deployments of standardized documentation—not one-off deals.

    Transparency—published criteria, impact dashboards, and summarized council decisions.

    Durable partnerships—multilaterals like Afreximbank co-investing alongside Nigerian pension funds.

    The scaffolding is already in place. What remains is discipline: execute, document, repeat.

    MDGIF is not a footnote—it is a potential catalyst for Nigeria’s economic rewiring. By converting geological abundance into macro stability, industrial competitiveness, and climate-aligned growth, it can anchor a new economic model.

    If the Fund stays faithful to global standards, operationalizes its Afreximbank partnership, and continues aligning with national priorities like the PCNGi, Nigeria may finally deliver what markets rarely see: a sovereign platform that is both investment-grade in process and transformational in outcome.

    That, more than any slogan, is how Nigeria will truly rewire its economy through gas.

    •Akinjo writes from Lagos.

  • ‘Gas is transformational fuel for Africa’s development’

    ‘Gas is transformational fuel for Africa’s development’

    Energy experts, media practitioners, and government functionaries who gathered at the second edition of Sahara Group’s thought leadership forum, Asharami Square at the weekend, unanimously affirmed natural gas as Africa’s transformational fuel for bridging energy security and powering industrialisation.

    The forum which was held in Lagos, highlighted gas as the bridge between energy access and renewable transition, the need for $100 billion annual investments in African energy infrastructure, and the media’s critical role in shaping accurate energy transition narratives.

    Speaking at the event, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, represented by his Senior Technical Adviser, Abel Nsa, said Africa needs to urgently address the narrative of “Africa’s energy paradox”.

    He said: “According to the International Energy Agency (IEA), Africa accounts for over seven per cent of global natural gas reserves, with Nigeria, Algeria, Egypt, and Mozambique holding the majority of these volumes. And yet, the continent consumes less than five per cent of global gas output. This mismatch between potential and utilisation must be addressed with urgency and purpose.”

    Applauding Sahara Group for shaping public discourse through Asharami Square, Ekpo said the platform can help bridge the gap between intention and action, and between information and transformation.

    According to the minister, harnessing the power of gas demands bold investments in infrastructure, pipelines that connect supply to demand, virtual pipelines that reach the underserved, and financing frameworks that de-risk investments and incentivise private-sector participation.

    “Natural gas is not merely a transitional fuel. It is a transformational fuel. It can power our industries, energise our homes, reduce dependence on more polluting fuels, and drive the engine of inclusive economic growth,” he added.

    The keynote speaker, Dr. Justice Derefaka, Group Asset Manager, PSC Asset Group B at the NNPC Upstream Investment Management Services (NUIMS), reiterated the socio-economic value of gas in Africa.

    Represented by the Asset Manager PSC, NUIMS, Frank Mmamelu, he stated that gas has the potential to lift millions out of poverty by supporting agriculture, improving access to clean domestic energy, reducing deaths caused by pollution, and addressing gender inequality.

    He stressed the need for local capacity building across the gas value chain, noting that reducing the export of unrefined resources should be a top priority.

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    Energy Communications Expert, Dr. Adeola Yusuf, said the media needs to have a “seat on the table” as partners in conversations relating to sustainability to drive accurate reporting and support of all stakeholders.

    He urged government and private institutions to facilitate seamless access to data and critical information that will support “holistic understanding and fact-based reporting of the issues to promote accountability, transparency and stamp out greenwashing.”

    Director of Governance and Sustainability at Sahara Group, Ejiro Gray, highlighted the importance of contextualising sustainability within Africa’s unique developmental realities.

    Gray explained that while global attention often centres on carbon emissions and net-zero targets, African nations face distinct challenges around access, equity, and economic inclusion.

    According to her, gas offers a critical opportunity to bridge these gaps. She also cited Sahara Group’s ongoing investments in gas infrastructure across Nigeria, Côte d’Ivoire, Kenya, Ghana, Senegal, and Tanzania, all designed to improve regional trade and energy access across the continent.

    Presenting the Asharami Awards for Outstanding Sustainability Reporting to Vanguard Online, Punch, Nigeria Info 99.3FM and Arise News, Bethel Obioma, Head, Corporate Communications, Sahara Group said the energy conglomerate was confident that such recognition will inspire more accurate and insightful reporting on Africa’s sustainability journey.

    He noted that Asharami Square is Sahara’s contribution to improving the understanding of sustainability and ensuring that the African narrative is not left behind. “We believe this will help reduce misrepresentation and enable the media to play a dominant and inspiring role in galvanising action and influencing the direction of public policy.”

    Other speakers at the event included Ijeoma Isichei, Head of Business Development (Gas) at Sahara Group; Mariah Lucciano-Gabriel, Head of Integrated Gas Ventures at Asharami Energy; Olurotimi Famoroti, CEO, First Independent Power Limited (FIPL); and Mobolaji Sunmoni, Senior Infrastructure Finance Professional. Together, they offered cross-sector perspectives on unlocking gas potential, aligning policy with private investment, and the role of inclusive narratives in enabling progress.

  • Fed Govt to inject N400b gas infrastructure fund

    Fed Govt to inject N400b gas infrastructure fund

    The Minister of Petroleum Resources (Gas) Obongemem Ekperikpe Ekpo has disclosed that the federal government will inject another N400 billion gas infrastructure fund to beneficiaries in the next two weeks.

    Speaking during the ground breaking ceremony of 10MMSGF/F CNG Mother Station facility held at Esit Eket Local Government Area of the state yesterday, Ekpo said that the FG is committed to cleaner and environment friendly energy.

    The N400billion is coming after the Federal Government released N122billion gas infrastructure fund last year.

    “Let me hint you in the next two weeks, I am going to release another money and this may be up N400billion, any Alwa Ibom Son and Daughter going to be involved should go and consult with Nsik Oil and Gas. Your project must be bankable, the Transaction Adviser, will approve it, so it will not be  that the Minister is from Akwa Ibom and whatever i bring he will approve, no.

    “You have to go through the scrutiny of the Transaction Adviser and when it’s presented to me you can go home and rest, you will be sure that the money will be released to you.

    “The time has come for Nigerians and Akwa Ibom to wake up and take advantage of the natural resources that we have in the country, please don’t sit at home and think that it will come, the time has come, we must carry our destiny in our hands,” Ekpo said.

    While highlighting the government’s commitment to cleaner energy and conducive environment, the minister tasked local government to provide conducive environment for the project to thrive

    He said: “This is a wonderful project that Nsik Oil and Gas has decided to bring, it is left for us so that you will not say that the Minister did not bring anything to Akwa Ibom State. It is left for you to provide a conducive environment so that this project will thrive”

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    Earlier, the Chairman/Chief Executive Officer,  Nsik Oil and Gas, Mr. Nsikan Johnny, expressed happiness noting the ground breaking marks a significant milestone in the journey to provide cleaner, safer, and more affordable energy solutions to the people of Nigeria and beyond.

    He said the project is a testament to Mr President Asiwaju Bola Tinubu’s Renewed Hope Agenda and his commitment to driving economic growth, reducing environmental impact, and improving the lives of our communities.

    He also appreciated the partnership of the Federal Government, the governor of Akwa Ibom State, Umo Eno and Midstream and Diwnstream Gas Infrastructure Fund for creating a peaceful environment for development of gas infrastructure in the country

    Project Consultant Mr. Mkposong Asuquo said that the Project is woven deeply into the Renewed Hope Agenda with an audacious milestone to underscore the visionary drive of private indigenous participation in the oil and gas industry.

    “With this investment , we shall make significant contributions to employment and cutting edge technology and operational infrastructure to provide seamless and efficient compression of gas to top off takers and corporate entities as well as individuals of our state and country at large,” he said.

  • Five for gas

    Five for gas

    •The nation looks forward to the completion and dividends of the mini-NLG plants by NNPC and partners

    The tone was cheerful, which is significant in what is sometimes a desperate economic atmosphere in the country.

    It concerns one of Nigeria’s major sources of prosperity: gas. In Ajaokuta, Kogi State, the buzz was not about steel, but the fact that it was about gas holds an important key to unlocking that quiet, untapped plenty. Many have lost hope in steel. It may wake up yet.

    But the Nigerian National Petroleum Company Limited (NNPCL) has entered into partnerships with other firms to build five mini-Liquefied Natural Gas (LNG) plants.

    The mini-LNG plants are namely: NNPC Prime LNG, NGML/Gasnexus LNG, BUA LNG, Highland LNG and LNG Arete. The Nigerian top energy establishment, that is the NNPCL, will share this opportunity. The NNPC has a stake in three of the five mini-LNG plants, that is: 90 per cent in Prime LNG, 50 per cent in NGML/Gasnexus LNG and 10 per cent in BUA LNG), while Highland LNG and LNG Arete are developed by other private companies.

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    The project will be constructed on 33,000 hectares of land, with a combined capacity of 97 million standard cubic feet of gas per day, and a 500 million dollars investment.

    “These mini-LNG facilities will ensure the efficient transportation of gas over long distances, providing a cleaner and cheaper source of energy to households, mobility, industries, and businesses. This is particularly important for regions that currently lack access to gas pipeline infrastructure,” said Mele Kyari, the group chief executive officer of the NNPCL.

    It is expected to produce Condensate, LNG, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG) and increasing gas availability.

    Kyari said it is part of the Federal Government’s plan to fulfill its gas-to-power dreams.

    This is a bold step because its dividends cannot be overstated. It is the way to go in energy around the world. It will help not only with access to energy but it will serve as a trigger for industrialisation across the country, especially in the underserved parts. This also includes parts of the north, which pleased Senator Akpoti-Uduaghan, who said pipeline developments are already ramped up in that part of the country.

    Kyari gave credence to it when he said equipment are in the ports and are ready for clearing. Stressing its urgency, Kyari was upbeat: “We understand very clearly that gas delivery must be done in the quickest manner, particularly for locations where the backbone infrastructure doesn’t exist today. And that is why we and our partners decided that it is appropriate and timely to start five mini-LNG projects in one location.”

    In this era when many are worried about gas wastage, with flares destroying wealth and sullying our environment, these plants are part of the roadmaps to clean air and profit in that regard.

    What this means is that we can count on uptick in our gross domestic products, with its salutary spinoffs of a stronger naira and foreign trade boost.

    Many also see this as a way to bolster a healthier market generally since it will serve as a catalyst for industrialisation, job creation, and economic diversification.

    Apart from LNG, it will also produce liquefied petroleum gas and condensates. It is a good story for the NNPCL that has been maligned in the past few years. Recently, it also announced a partnership with Shell to the tune of $5 billion.

    As Senator Akpoti-Uduaghan said, “gas is the future.” So, it calls for all in this project to enter it with a sense of purpose. The once vibrant Ajaokuta city has another opportunity for a new life, and the past failures should not be the metric for the coming years. Rather, it should be a rebuke to make success automatic.

  • Improved gas supply helping manufacturers deal with unstable grid

    Improved gas supply helping manufacturers deal with unstable grid

    Some Nigerian manufacturing companies are leveraging improved gas supply around Lagos to ramp up production amidst incessant grid collapses. This development is boosting their operations, according to Zheng Wei, Managing Director of one of the country’s largest footwear manufacturers.

    Wei, who leads Tiget Business International Limited—incorporated in Nigeria in 2020 and based in Sagamu—highlighted that while manufacturers face numerous challenges, including regulatory compliance, economic downturns, inflation, and currency fluctuations, power remains the most critical.

    According to data from the Manufacturers Association of Nigeria (MAN), Nigerian manufacturers are struggling to secure foreign exchange for raw material imports and are also burdened by high energy costs, which constitute almost 40% of their expenses.

    “The electricity supply from the grid is simply inadequate and unstable, which has often led to production downtimes and disruptions impacting our overall productivity and output,” Wei said.

    In response, Tiget sought alternative solutions and partnered with Clarke Energy to integrate a 6.6-megawatts Jenbacher gas power plant, sourcing gas from a supplier along the Lagos-Ibadan Expressway. Clarke Energy conducted a thorough assessment of Tiget’s existing power infrastructure, delivered front end engineering designs (FEED), and supervised the installation of the gas power plant. The company also provides maintenance support for the plant.

    “The gas plant is producing cleaner electricity and saving us significant operational costs compared to diesel,” Wei noted. “It has addressed efficiency issues, making our operations more sustainable.”

    Yiannis Tsantilas, Managing Director of Clarke Energy for sub-Saharan Africa, emphasised the importance of resilient, cleaner and cost-effective energy solutions for manufacturers.

    “Today, as the manufacturing sector switches to resilient, cleaner, and cost-effective power generation alternatives, it will witness sustainable productivity. However, this success will be determined by the functional excellence of the decision-making team.

    The leadership team at Tiget Business International Limited has demonstrated excellence, resulting in value addition to the Nigerian economy. For example, it has improved accessibility to quality footwear in the local markets, reduced the unemployment rate, and kept its focus on deepening investments in the country. It is a remarkable effort.”

    Tiget currently imports polyvinyl chloride (PVC)—a primary feedstock for its footwear products and aims to expand its footprint by driving backward integration and establishing offices and subsidiaries in key markets across Nigeria and Africa.

    “We see Nigeria as the regional economic hub in Africa. It boasts a stable democracy and a vibrant, talented young population. Fashion plays a central role in Nigeria’s rich cultural identity, and we aim to innovate high-quality footwear that enhances and influences the country’s fashion industry,” Wei said.

    He said the Nigerian market is robust. With a population of over 220 million people, it has a unique Commerce and Trade system compared to other countries. Its local market has vibrant business patronage.

    “The high fuel cost has affected logistics and the movement of goods and people,” Wei explained. “As a business, we cannot pass on the entire cost difference to our distributors and customers without risking competitiveness.”

    Wei advocates for setting up refineries to provide feedstock for plastic industries and ensuring a stable gas supply to help manufacturers navigate Nigeria’s power challenges. Such measures, he argues, would foster industrial growth and economic stability in the country.

  • House of Reps passes Bill to criminalise gas flaring

    House of Reps passes Bill to criminalise gas flaring

    A Bill for an Act to prohibit gas flaring, encourage gas utilisation and provide for penalties and remedies for gas flaring violations and related matters yesterday scaled the second reading in the House of Representatives.

    In his lead debate, the sponsor of the Bill, Benson Babajimi (APC, Lagos), said it represented a decisive legislative intervention aimed at addressing the “long-standing and damaging” practice of gas flaring in the country.

    The lawmaker said the Nigeria’s constitution makes it imperative for all citizens – natural and corporate – to protect the environment and promote sustainable development.

    He said the Bill sought to prohibit the flaring and venting of natural gas, except in strictly regulated circumstances, while encouraging the utilisation of gas resources to foster economic growth and energy generation.

    Babajimi said: “It provides a robust framework for enforcement, monitoring and the imposition of penalties to ensure compliance.

    “Furthermore, the Bill aims to mitigate the environmental, health and economic impacts of gas flaring, aligning Nigeria’s oil and gas operations with international climate change commitments.

    “Gas flaring has plagued Nigeria for decades, leading to severe environmental degradation, public health crises and economic losses.

    “Environmentally, it contributes to greenhouse gas emissions, global warming and acid rain, exacerbating climate challenges.

    “Public health impacts are equally dire, as pollutants from gas flaring cause respiratory and cardiovascular diseases, particularly among residents of communities close to flaring sites.

    “Economically, flaring results in the waste of a valuable resource that could otherwise be harnessed for energy generation or exported to generate revenue.”

    The lawmaker explained that the Bill provided for a comprehensive prohibition of gas flaring except in emergencies or when explicitly authorised by Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

    According to him, operators are required to submit and implement Gas Utilisation Plans, detailing how gas that would otherwise be flared would be captured, processed or commercialised.

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    “Offenders who violate these provisions face stringent penalties, including fines of $5 per 1,000 standard cubic feet of gas flared and potential suspension of operations for repeat violations.

    “Furthermore, the Bill ensures that communities affected by gas flaring are entitled to compensation and environmental restoration, creating a mechanism for redress.

    “Transparency and accountability are integral to the enforcement framework of this Bill.

    “Operators must submit regular reports on gas flaring incidents, which will be audited and made publicly available by the NUPRC. This approach ensures public oversight and stakeholder engagement, fostering trust and compliance,” Babajimi said.

    The lawmaker also said the Bill, when passed into law, would yield significant benefits, like reduction in carbon emissions, thereby contributing to Nigeria’s climate targets and promoting sustainability.

    He noted that, economically, it would unlock the potential of natural gas as an energy resource, enhancing electricity generation, supporting industrialisation and creating jobs.

    According to him, the public health benefits in the Bill are many, such as reduced flaring, which will limit air pollution and associated health risks for affected communities.

    Babajimi alluded to Norway’s zero-flaring policy, for instance, saying the European country had not only protected the environment but also maximised revenue from gas resources.

    The lawmaker explained that adoption of the Bill would position Nigeria to emulate such success, ensuring a balance between environmental stewardship and economic development.

    He added that the implementation would be overseen by Nigerian Upstream Petroleum Regulatory Commission, which would monitor compliance through regular audits and enforcement of penalties, while facilitating gas utilisation projects in collaboration with operators and development partners.

    “Its provisions are both practical and forward-looking, addressing immediate concerns while laying the groundwork for a sustainable future.

    “I urge all honourable members to support the second reading of this Bill as a demonstration of our collective commitment to environmental protection, public health and economic progress,” Babajimi added.

    Speaker Tajudeen Abbas referred the Bill to relevant committees for further legislative actions.

  • States lose suit over gas earnings

    States lose suit over gas earnings

    The Supreme Court has struck out a suit by the governments of the nation’s 36 states, seeking to among others, compel the Federal Government to account for its earnings from the sale of liquefied natural gas, natural gas liquids and related products since 1999.

    In a unanimous judgment yesterday, a seven-member panel of the court, presided over by Justice Uwani Abba-Aji, held that the court lacked the original jurisdiction to hear and determine the suit, marked: SC/483/2020, which has the Attorney General of the Federation (AGF) as sole defendant.

    In the lead judgment, Justice Mohammed Lawal Garba upheld the preliminary objection raised against the suit by the AGF and held that the subject of the case had been dealt with by the Supreme Court in its earlier decision in the case of the  Attorney General of Bauchi State against the AGF.

    Justice Garba agreed with the defendant that the suit amounted to an attempt to re-litigate issues already decided by the Supreme Court in the AG, Bauchi v. AGF case, which relates to the revenues accruable to the government of the federation, which are payable into the federation account.

    He held that the Supreme Court lacked the original jurisdiction to preside over and determine the case.

    The judge proceeded to strike out the suit for want of jurisdiction to hear the case as presently constituted.

    Other members of the panel –  Justices Abba-Aji,  Emmanuel Agim, Simon Tsammani, Stephen Adah and Jamilu Tukur agreed with the lead judgment.

    The states had prayed the court for the following reliefs:

    *An order directing the Federal Government of Nigeria to render an accurate and true account of the total income/profit/dividend, etc, earned by it from Nigeria’s participation in the business of liquefying and selling of liquefied natural gas, natural gas liquids etc, through its shareholding in the Nigeria LNG Limited, held in the name of Nigerian National Petroleum Corporation since 9th October 1999, when the first cargo of liquefied natural gas left the shores of Nigeria till date; and to pay same into the federation account for the purpose of appropriation and redistribution to the 36 states of the Federation and the Federal Capital Territory in the manner prescribed in Section 1 of the Allocation of Revenue (Federation Accounts, Etc.) Act CAP A15 LFN 2004.

    * An order directing the Federal Government of Nigeria to immediately pay the sum of $17billion or any other sum paid as dividend up to the 17th May, 2020 and thereafter, as accruing income/profit/dividend etc. earned or to be earned by it from Nigeria’s participation in the business of liquefying and selling of liquefied natural gas, natural gas liquids etc, through its shareholding in the Nigeria LNG Limited, held in the name of Nigerian National Petroleum Corporation, into the federation account immediately upon receipt, for the purpose of appropriation and redistribution in the manner prescribed in Section 1 of the Allocation of Revenue (Federation Accounts, Etc.) Act CAP A15 LFN 2004.

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    *An order directing the Federal Government of Nigeria to henceforth render accurate and true account of every income/profit/dividend etc, earned or to be earned by it from Nigeria’s participation in the business of liquefying and selling of liquefied natural gas, natural gas liquids, and every other business carried by the Nigeria NLG Limited, for which it is entitled to earn income/profit/dividend etc, through its shareholding in the Nigeria LNG Limited, held in the name of Nigerian National Petroleum Corporation.

    *A declaration that by virtue of Section 44(3) of the Constitution of the Federal Republic of Nigeria, 1999 [as amended) and Section 1 of the Petroleum Act, CAP P10, LEN 2004, read in concert with Section 2 (1) of the 1999 Constitution of the Federal Republic of Nigeria, 1999 (as amended), liquefied natural gas and natural gas liquids are petroleum and natural gas, whose entire ownership and control are vested in the government of the Federation, also referred to as the State under Section 1 of the Petroleum Act; such that the entre Federation including the 36 states and the Federal Capital Territory are entitled to the benefits therefrom.

    *A declaration that the entire shareholding of the NNPC in the Nigerian LNG Limited, acquired pursuant to its powers under Section 6(1) (b) & (c) of the Nigerian National Petroleum Corporation Act, CAP N123 LFN 2004, is owned by the Government of the Federation also referred to as the State under Section 1 of the Petroleum Act, CAP P10, LFN 2004, i.e. the Federal Government of Nigeria, Including the 36 states and the Federal Capital Territory.

    *A declaration that the Federal Government of Nigeria’s participation in the business of liquefying and selling of liquefied natural gas, natural gas liquids etc. through its shareholding in the Nigeria LNG Limited, held in the name of Nigerian National Petroleum Corporation, is carried on in trust for the benefit of the entire Federation, including the 36 states and the Federal Capital Territory.

    *A declaration that the Federal Government of Nigeria, as trustee of every income/profit/dividend etc, accruable to the Federal Government of Nigeria from its participation in the business of liquefying and selling of liquefied natural gas, natural gas liquids etc, through its shareholding in the Nigeria LNG Limited, in the name of Nigerian National Petroleum Corporation, is accountable to the 36 states and the Federal Capital Territory, for the total income/profit/dividend accruable to the Federal Government of Nigeria since 9th October 1999, when the first cargo of liquefied natural gas left the shores of Nigeria till date.

    *A declaration that the income profit/dividend etc, accruable to the Federal Government of Nigeria from its participation in the business of liquefying and sailing of liquefied natural gas, natural gas liquids etc, through its shareholding in the Nigeria LNG Limited, in the name of Nigerian National Petroleum Corporation  and carned on in trust for the benefit of the federation, Is “public money” in the light of Section 2 of the Finance Control and Management) Act, CAP F 26, LEN 2004, which by Section 80 of the 1999 Constitution of the Federal Republic of Nigeria, (as amended) is mandatorily required to be paid into a consolidated revenue fund of the Federation, for the purpose of appropriation and redistribution in accordance with the Constitution of the Federal Republic of N gena 1959 (as amended).

  • ‘Gas-driven industrialisation ’ll create jobs, boost SMEs growth’

    ‘Gas-driven industrialisation ’ll create jobs, boost SMEs growth’

    The Coordinator, Decade of Gas Initiative, Ed Ubong, has stressed the need to embrace a gas-driven economy, insisting that it holds huge benefits to the generality of the people, noting that gas is not just a fuel, but also an industrial feedstock which can help to herald the country’s electrical generation capacity, cut energy costs and make electricity supplies more reliable to households, businesses and industries.

    Ubong also noted that investment in gas pipelines and gas-fired power plants is critical because the industrialisation of the country lies solely on creating a robust domestic gas market for the sustenance of industries like petrochemical plants, fertiliser plants and manufacturing plants.

    According to him, by using gas as an engine for industrialisation, the nation will attract new investments, create jobs and see a diversified economy away from our dependence on crude oil. Besides, he said that such endeavour will create jobs for millions of Nigerians, boost the growth of small and medium sized enterprises (SMEs) and stabilise the economy.

    He made this known while delivering his keynote address at a panel session organised by the  Association of Energy Correspondents of Nigeria (NAEC) in Lagos during its Annual Strategic International Conference 2024.

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    Speaking on the topic- “Actualising the Decade of Gas: Powering Nigeria’s Energy Sufficiency, Industrialisation and Economic Prosperity,” Ubong noted that the Decade of Gas Initiative seeks to leverage the country’s abundant natural gas resources for economic development.

    “With an estimated over 206 trillion cubic feet, Nigeria is regarded as the largest holder of gas reserves in Africa and 9th in the world. These reserves are not only a national asset but a global one, as it provides the foundation for energy security, industrialisation and economic growth.

    “The Decade of Gas initiative, launched in 2021 by the Federal Government of Nigeria, represents a concerted effort by the government and private sector to leverage the country’s abundant natural gas resources for economic development and energy transition with a view of powering the country into development and economic growth over the next decade, anchoring on energy sufficiency, industrialization, and economic prosperity,” he stated.

    Ubong said the role of governments, the private sector and the media is critical in actualising this vision through partnership, innovation and investment in gas-related projects. For instance, he disclosed that the ongoing construction of OB3, AKK, ELPs, etc., and investments in liquefied natural gas (LNG) facilities as well as gas processing plants are game changers for Nigeria’s energy landscape.

    “We will need to ensure that we strengthen regulatory frameworks, deepen partnerships between international energy companies, and strive toward the goal of creating an enabling investment environment that attracts investment and builds investors’ confidence,” Ubong said. Gas-driven industrialisation’ll create millions of jobs, boost SMEs growth– Ubong

  • Fed Govt moves to deepen nationwide gas usage

    Fed Govt moves to deepen nationwide gas usage

    The Permanent Secretary, Ministry of Petroleum Resources, Amb. Nicholas Agbo Ella, has inaugurated the Technical Working Group (TWG) for the National Gas Expansion Programme (NGEP), National Directorate of Employment (NDE), and Association of Local Governments of Nigeria (ALGON) power project to oversee the utilization, implementation and establishment of Gas Power Projects in local government areas across the nation.

    In his remarks at the inauguration ceremony in Abuja, Amb. Ella highlighted  NDE’s strong focus on Vocational Skills Development Programme, a core mandate that aligns with NGEP’s Gaspreneurship initiative.

    Deputy Director (Information  and Public Relations), Mrs. Oliwakemi Ogunmakinwa made this known in a press statement yesterday.

     According to the statement, Ella explained that the Gaspreneurship initiative, developed by NGEP, encompasses the art and science of all aspects of the gas value chain, including exploration, production, transmission, and distribution.

    The TWG will drive the implementation of this initiative, fostering collaboration among NGEP, NDE, and ALGON to promote gas-based economic development and job creation in local communities.

    “Gaspreneurship initiative, conceived and developed by the National Gas Expansion Programme (NGEP), encompasses the art and science of the entire gas value chain,” said Amb. Ella.

    According to the Permanent Secretary, “The comprehensive training component covers:- Entire gas streams and operating principles- Audit of machinery and equipment types and capacity for suitable system installation and calibration”

    The Gaspreneurship Initiative  would  conclude with the provision of Starter Packs, including diagnostic tools and equipment, and identification of appropriate workshops and Business Incubation Centres in Local Government Areas nationwide and this would  enable Trainee Gaspreneurs to become employers of labour upon graduation.

    Earlier in his address, the Chairman of NGEP, Prof. Mohammed  Ibrahim emphasized the Technical Working Group of ALGON’s role in energizing Local Governments to identify and develop gas-based projects and promote economic growth and job creation in the Local Government Areas.

    Prof. Ibrahim therefore charged the National Directorate of Employment (NDE) to upgrade and develop the Skills Acquisition Centres in all the 774 LGAs under their supervision as well as develop curriculum that would have all the topics relating to empowerment training.

    The Terms of Reference (ToR) for the NGEP, ALGON and NDE Technical Working Group (TWG) are as follows: identify clear areas of intervention along the gas value chains that can transform the socio-economics of the LGAs; design a simple energy (power and transportation) audit template for determining the energy requirements of the LGAs;  design a selection criterion for LGAs to participate in the various phases of the implementation of these initiatives, among others.

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    Membership of the Technical Working Group (TWG)  which were drawn from the Ministry of Petroleum Resources (NGEP), NDE and ALGON comprised of :

    Chairman of NGEP, Prof. M. M. Ibrahim mni,; Assistant Director (Information) Mr. Christopher Ugwuegbulam; Assistant Chief Geologist/Head of NGEF Secretariat, Ogidikpe Ayauge; Assistant Chief Petroleum Engineer/Deputy Head of NGEP Secretariat Engr. Raphael Chinda;  Principal Executive Officer(GD)/Member of NGEP Secretariat Mrs. Hauwa A. Kazir; Manager NMDPRA/Member NGEP Secretariat Mrs. Pricillia Ekpe, Chief Petroleum Engineer/Member of NGEP Secretariat Engr. Okoro Dickson.

    Others are: Director (Planning, Research and Statistics) NDE Mr. Onwuliri Edmund;  Assistant Chief Rural Employment Promotion Officer NDE Mrs. Owan M. Blessing;   Assistant Chief Training Officer NDE Dr. Hassan A. Abdulkarim;  Principal Administrative Officer NDE Mrs. Jerry Usuwa.

    Members also included: ALGON Chairman Ebonyi State, Chief Moses O. Nomeh;  ALGON Chairman Bayelsa State Hon. Lelei Tariye Isaa;  ALGON Chairman Katsina State, Hon. Bello Lawal; Director (Finance and Accounts) ALGON Headquarters Abuja Alh. Salawu N. Ozigi and Director (Policy, Research and Planning) ALGON Headquarters Abuja Chief Dimeji Lamu.

  • Oil, gas operators push for synergy in regulations

    Oil, gas operators push for synergy in regulations

    Experts and stakeholders in the country’s oil and gas sector have lamented the bottlenecks faced in their quest to comply with regulatory procedures. The stakeholders, who spoke at the just concluded Society of Petroleum Engineers (SPE) Nigerian Council’s 47th Nigeria Annual International Conference & Exhibition (NAICE) in Lagos yesterday, regretted that the regulatory bottlenecks have continued to suffocate the sector while investors are now looking for solace in other countries. To this end, they therefore called on the government to streamline the process for better compliance.

    Leading the charge in was the Managing Director and Chief Executive Officer, Aradel Holdings Plc, Adegbite Falade, who noted that the country’s oil and gas industry is the most regulated in the country, adding that over 40 regulators are currently overseeing the sector.

    Hear him: “Some years ago, we were dealing with about 10 regulators, but today the number of regulators that we are dealing with is not less than 40. We really have to deal with this. We need the regulators but we believe the regulations should be seamless.”

    Besides emphasising the need for regulations to be more digitised in order to ensure ease of getting approvals, he also appealed that the payments to regulators being currently made  in dollars should be reversed. “I would like to appeal to them that we should do our deals in Naira. Let our operators breathe,” Falade said.

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    Although Falade applauded the regulators for the support that indigenous firms have enjoyed from the regulators, he nonetheless observed that “but there is room for improvement,” even as he called for reduction in time frame for securing approvals.

    Speaking in a similar vein, a Principal Consultant / Chief Executive Officer, Reservoir and Facilities Solution Limited, Mrs. Oluseyi Afolabi, said Nigeria must perfect its laws and ensure a seamless regulatory process so that they don’t have to change the rules often.

    She said: “You can’t change the rule in the middle of the game. The oil and gas industry is a long term investment and investors are in business to make profit, we don’t need to discourage them.”

    Likewise, the Executive Director Oando Plc, Ainoje Irune, who was represented by the firm’s General Manager, Subsurface, Babafemi Onasanya, at the event, said financial support has been a major concern for indigenous players, adding that finding a financial partner is very crucial to the growth of local players in Nigeria.

    He advocated for community partnership between the host and oil firms as this will lead to sustainability of business operations and growth of such a host community. This, according to him, would reduce the restiveness in host communities and reduce vandalism which has been a major threat to crude oil production in a long time.

    However, going by the disclosure of some of the regulators, the concerns of operators may be a thing of the past in this regard. At the opening ceremony of the NAICE 2024, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Commission Chief Executive, Gbenga Komolafe, an engineer, revealed that it is entrenching collaboration with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other key stakeholders to deepen end-to-end value in critical areas of operations within the oil and gas sectors of the economy.

    According to him, NUPRC is confident that the efforts to foster regulatory alignment in this respect will stimulate further activities for domestic energy security in the short term. “We will not rest on our oars!  We are committed to entrenching collaboration for enhanced value to the industry and the nation.”

    According to him, the NUPRC is confident that the efforts to foster regulatory alignment in this respect will stimulate further activities for domestic energy security in the short term. He further emphasised that the optimisation of the midstream and downstream segments is not merely an option but an inevitability.

    “By focusing on these areas, we can mitigate the risks associated with market volatility, enhance our refining capacities, and ensure a more stable and efficient energy security for our nation, in a world undergoing change,” Komolafe submitted.