Ask Nigeria Header Logo

How Nigerians have access to natural gas

Photo of author

By Nicole

Stakeholders seek ways to mitigate current challenges in the natural gas sector.

Nobert Shialsuk, the Executive Director of Brio Group, shared his thoughts on how Nigeria can become a leading producer of natural gas and how the majority of its citizens can have access to the crucial commodity, among other issues relating to the natural gas sector, during a recent conversation held virtually with stakeholders to seek ways to mitigate current challenges in the natural gas sector. How does Nigeria’s gas business fit into the global battle to achieve net-zero emissions by 2050, and he said Nigeria reiterated its commitment to reversing climate change during COP 26 and also filed a nationally defined pledge to do so.

Since then, Nigeria has proclaimed a “Decade of Gas,” which has established the country’s next major oil and gas development. The government’s main goals are to make Nigeria a top gas producer and consumer, which can be broken down into two main goals. Nigeria has estimated gas reserves of 600 trillion cubic feet (Tcf) and above 206 Tcf and is a significant gas exporter. One of the government’s major policy initiatives is to advocate for the conversion of Nigerian homes from using firewood and charcoal as domestic fuel to gas and the introduction of natural gas cars. The world is moving in this way because, by 2050, natural gas and renewable energy sources are predicted to account for approximately 50% to 60% of global primary energy consumption. Thus, Nigeria is moving in the right direction because the future belongs to gas and renewable energy sources.

Challenges Nigeria faces in its effort to deepen the domestic gas market.

Let me talk about the four challenges of energy access in Africa: accessibility, affordability, availability, and awareness. Energy is scarce in Africa. We are addressing the biomass issue. About 35% of urban dwellings and over 80% of rural homes still use firewood, respectively. Let’s begin with accessibility. You must first make natural gas accessible if you want Nigeria to become a major consumer. Deepening gas pipelines is necessary to make natural gas more accessible.

Extending the distribution networks to all of Nigeria. The Ajaokuta-Kaduna-Kano (AKK) pipeline is commendable since it would expand gas supplies and open up the hinterland. You must also make the liquefied petroleum gas (LPG) product available. The DOMGAS project of NLNG has increased LPG accessibility. Accessibility is the next problem that needs to be solved. These goods must be available to the public. The cylinders must be reachable. The conversion kits are required if you want someone to drive a natural gas car that wasn’t made that way from the factory.

LPG means providing cylinders for homes to be able to access the product.

Simply put, it entails delivering cylinders so that homes can obtain LPG. The government should concentrate on these important policy issues. I’ve spoken with the mid-stream and downstream infrastructure fund’s management, and they want to solve this issue in particular. By establishing the midstream and downstream gas infrastructure fund to close the infrastructure deficit in the nation and promote accessibility, the Petroleum Industry Act (PIA) is spot on. Affordability is the third and most significant obstacle to converting Africa to cleaner energy.

Costs have increased over the previous 12 months. According to an assessment of Nigerian households conducted by the African Clean Cooking Alliance between 2020 and 2021, monthly household spending in Nigeria is between N2,000 and N3,000. Take a look back to 2015, when a KPMG survey revealed that Nigerians who used LPG were willing to spend N2,000 on it. The average cost per cylinder between 2010 and 2015 ranged from N2, 000 to N3, 000. LPG is currently N10,000. A significant barrier is cost; most people cannot purchase conversion kits. The government needs to figure out a means to distribute that conversion kit.

The amount of a cylinder is between N20,000 and N30,000.

A fee on the consumption of petroleum and gas products, which amounts to 0.5 percent, will be allocated to the Nigerian mid-stream and downstream gas infrastructure fund. Therefore, the infrastructure for gas is already being paid for by individuals. Since the Petroleum Industry Act includes a means for recovering the cost, I fail to see why the government cannot offer these conversion kits to citizens (PIA). The cylinder is similarly priced between N20,000 to N30,000. How many Nigerians, whose minimum pay is N30,000, can afford to purchase the cylinders?


Related Link

FB: Website

Fact-Checking Tool – Snopes.com


The content on AskNigeria.com is given for general information only and does not constitute a professional opinion, and users should seek their own legal/professional advice. There is data available online that lists details, facts and further information not listed in this post, please complete your own investigation into these matters and reach your own conclusion. AskNigeria.com accepts no responsibility for losses from any person acting or refraining from acting as a result of content contained in this website and/or other websites which may be linked to this website.

Fact Checking Tool - Snopes.com

0 0 votes
Rate This Article
22 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Ask Nigeria
Admin
1 year ago

How Nigerians have access to natural gas – Stakeholders seek ways to mitigate current challenges in the natural gas sector. – Express your point of view.

Abusi
Abusi
Member
1 year ago

We should have a considerable access to natural gas. It is supposed to be affordable got Nigerians because we are blessed with the natural resource.

Nwachukwu Kingsley
Nwachukwu Kingsley
Member
1 year ago

Concerns about how Nigeria can become a world leader in natural gas production and how the vast majority of its people can gain access to this essential resource are just the tip of the iceberg.

Taiwoo
Taiwoo
Member
1 year ago

At a recent conversation that was held digitally with stakeholders to look for methods to mitigate the issues that are now facing the natural gas industry.

Nwachukwu Kingsley
Nwachukwu Kingsley
Member
1 year ago

.

Last edited 1 year ago by Nwachukwu Kingsley
Adesanyaj72
Adesanyaj72
Member
1 year ago

During COP 26, Nigeria demonstrated its continued dedication to reversing the effects of climate change and also submitted a nationally defined pledge to that effect.

Godsewill Ifeanyi
Godsewill Ifeanyi
Member
1 year ago

To get Nigeria to the point where it is a significant user, you need to make natural gas available to the public, and that means deepening gas pipelines.

Hassan Isa
Hassan Isa
Member
1 year ago

If you want to get someone behind the wheel of a natural gas car that wasn’t originally built for that purpose, you’ll need to get them one of those conversion kits.

Bola12
Bola12
Member
1 year ago

A recent chat that was held electronically with stakeholders to seek for ways to minimize the challenges that are presently affecting the natural gas sector was held. The conversation was done in an effort to find solutions to the problems that are currently being faced by the natural gas industry.

Tolaniiii
Tolaniiii
Member
1 year ago

Natural gas must be made available to the public through the deepening of gas pipelines if Nigeria is to become a large user.

Kazeem1
Kazeem1
Member
1 year ago

To address the country’s infrastructure gap and increase accessibility, a fund to support projects in the midstream and downstream gas industry has been established.

Chibuzor
Chibuzor
Member
1 year ago

The fact that most consumers can’t afford to buy conversion kits presents a big obstacle. It conversion kit needs to be disseminated, and the government needs to figure out how to do that.

Iyanu12345ogg
Iyanu12345ogg
Member
1 year ago

Something should be done in an effort to find solutions to the problems that are currently being faced by the natural gas industry.

Christiana
Christiana
Member
1 year ago

Most consumers cannot afford conversion kits. The government must decide out how to distribute the conversion kit.

SarahDiv
Member
1 year ago

It is very sad that in a country like ours having abundance of natural gas the citizens will be battling with availability and accessibility to natural gas at an affordable price. Government should please address all Four As to resolve the issues around it.

Tonerol10
Tonerol10
Member
1 year ago

Nigeria can become a leading producer of natural gas. We have all it takes if only Nigeria can do the needful and aldo make natural gas available to the public

Haykaylyon26
Member
1 year ago

We should be able to afford the natural gas we are blessed with natural resources in various type we have to find a way for us to be enjoy the natural resources in our country

Ultra0711
Ultra0711
Member
1 year ago

Despite the natural gas in the country we are still struggling and battling to get a natural gas. It’s really saddened. May God help us in this country.

DimOla
DimOla
Member
1 year ago

It is quite unfortunate that Nigeria that owns huge amount of natural gas deposit still struggle to ensure that it is available, accessible and affordable to her citizens. Every impediment should be remove to ensure that it is affordable.

Adeolastan
Adeolastan
Member
1 year ago

Nigeria is really blessed with both human and natural resources.The gas is one of the natural mineral which is available abundantly but very unfortunate that is very expensive and it is only the rich that can afford it.

theApr
theApr
Member
1 year ago

The world is changing because it is anticipated that by 2050, natural gas and renewable energy sources will supply between 50% and 60% of the world’s primary energy needs.

Remi1
Remi1
Member
1 year ago

Just the beginning in terms of worries is how Nigeria can lead the world in natural gas production and how the great majority of its citizens will have access to this vital resource.