Since its inception in March 2021, the Nigeria ‘Decade of Gas’ policy, has shown dismal success with just 5 percent of its projected goals being met so far compared to the 85 percent year-on-year growth benchmark set by the government. Nonetheless, the government attributes the policy’s poor success to a myriad of constraints impeding gas production and use. These include implementation of VAT, a high exchange rate, a rise in the international price of commodities, a high cost of transportation, and local manufacturers basing gas prices on foreign pricing.
The government had already declared January 1, 2021 through December 31, 2030 to be Nigeria’s Decade of Gas. Within this period, the government hopes to increase gas output while also tackling energy poverty in the country. In addition, the government would work to industrialize the nation, generate employment, pull 100 million Nigerians out of poverty, and eventually put the economy on a road to prosperity. Notwithstanding the policy flaws, Mr. Ayo Cardoso, Southwest Zonal Coordinator of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said that some progress had been made.
Primary goals of the Decade of Gas is to increase domestic gas use.
Mr. Cardoso, who give updates on the performance of the policy at the recently ended Sub-Saharan African International Petroleum Exhibition and Conference (SAIPEC) 2023 in Lagos, emphasized that there has been verifiable progress in the gas facilities dating back to 2017 – 2022. He further explained that the number of LNG terminals, which was only 5 in 2017, had increased to 42 in 2022, and the number of CNG terminals, which was only 97 in 2017, has increased to 112.
Although LPG station expansions have been stagnant between 500 and 585 since 2017, LPG plants rose from 2017’s 675 to 2022’s 13,038. Hence, Cardoso elaborated on how progress in the Decade of Gas has lagged well below official expectations. The primary goals of the Decade of Gas were to increase domestic gas use and keep existing gas reserves in service. He also said that Nigeria’s proven resource means the country’s gas sector has promising prospects.
Government has placed more of an emphasis on gas-to-power.
As elaborated by the Southwest Zonal Coordinator for the NMDPRA, the domestication of gas products like CNG and LPG has had a profound effect on the country’s economy. Pipelines, storage facilities, and processing facilities are only a few examples of the domestic infrastructure that have undergone recent, noteworthy advancements. He maintained that the National Gas Flare Commercialization Project in Nigeria could tap into 900 billion standard cubic feet (scf) of gas (NGFCP). While pointing out that Nigeria’s LNG sector has expanded tremendously, he noted that the government has placed more of an emphasis on gas-to-power since it devotes around 70% of its gas supply to this purpose.
In his urge to enhance the improvement, Cardoso advocates for the need of encouraging greater regional gas production and use on the home market. This, he said, would cushion the price of gas from market fluctuations and imported fuel. He also supported keeping tabs on gas producers to guarantee reasonable and comparable gas pricing. The NMDPRA zonal coordinator made comments on how the Decade of Gas program was being implemented and emphasized the need of creating a stable environment in order to encourage more players to participate in space.
Gas sector as a whole has created more employment.
Noting the importance of the Petroleum Industry Act (PIA), Cardoso said that it has established an enabling environment for the business, adding that new rules would be approved to pave the way for the gas market. According to him, the gas sector as a whole has created more employment, demanding more investment and empowering more individuals in the area. Similarly, he encourages government-private sector partnerships in order to achieve the common aim of developing the gas industry.
Related Link
NES: Website
Nigeria Decade of Gas policy stagnates at 5%. – Gov’t would work to industrialize the nation as part of the policy. – Express your point of view.
We can see how relevant the gas industry is to us in Nigeria. We should still to do more to be able to produce more gas to meet the needs of Nigerians.
The use of gas should be promoted very well by the federal government because with this emission of carbon monoxide will be reduce and also provide jobs for the citizen.
The decade of gas initiative that was implemented in Nigeria has had a miserable amount of success, with a small percent of its anticipated goals being realized thus far.
The ineffectiveness of the policy is explained by the government as being due to the many obstacles that stand un the way of the production and consumption of gas.
This will lead to a soaring currency exchange rate, skyrocketing commodity prices worldwide, skyrocketing transportation costs, and local manufacturers basing gas prices on rates in other countries.
Industrialization of the country, the creation of jobs, the eradication of poverty among the population, and the establishment of Nigeria’s economy on the path to prosperity would all be goals of the government’s plans.
The government’s goals are to expand gas production while simultaneously reducing the amount of energy poverty in the country.
The production of gas should be more in other to occupy everyone’s it gas is promoting well any obstacle should be block not to affect the promotion of the gas
The gas industry as a whole has resulted in an increase in employment opportunities, a desire for increased investment, and the empowerment of an increased number of individuals in the region.
We should have collaborations between the government and the private sector in order to accomplish the shared objective of expanding the gas business.
The government should do more to encourage the use of gas because doing so will both lower carbon monoxide emissions and create employment opportunities.
The plan by the government to work to industrialize the nation should be triggered with immediate alacrity. Everything about it seems positive, so I’m cool with it.
The federal government should actively encourage the use of gas because doing so will decrease carbon monoxide emissions and create new employment opportunities for the general public.
The importance of the gas industry to Nigeria is plain to see. There is still work to be done to increase gas production to fulfill the needs of Nigerians.
Gov’t would work to industrialize the nation as part of the policy. The gas usage in Nigeria is much and it has really helped many Nigeria
Series of promises have being given by different administration but very few were fulfilled that is the case of the decade of Gas policy that remain at 5%. Blames will always be shifted to other things. God help Nigeria.
With the problems plaguing Nigeria presently it is understandable that Nigeria lost the capacity to scale up the Decade of Gas policy beyond 5%.
The administration blames the numerous roadblocks on both gas production and use for the policy’s failure to date.
The government explains that the policy’s inefficiency is a result of the numerous barriers that prevent the production and consumption of gas.
Gas production needs to increase in order for everyone to have enough to consume; gas is promoting successfully, thus any obstacles should be removed.