- NGA stresses the importance of maximising its vast gas resources in the target towards net zero by 2060.
- The government has to ensure Nigeria becomes an investment destination with the sanctity of contract, virile fiscal and commercial framework.
The president of the Nigeria Gas Association (NGA), Akachukwu Nwokedi, has said gas has to be the primary driver of Nigeria’s energy transition as many Nigerians do not have access to electricity. He stated this during the 2023 annual international conference of the Nigeria Association of Energy Correspondents in Lagos.
According to him, as the country sets its target towards net zero by 2060, it has to set its priority right by maximising its huge gas resources as a gas nation. He said enormous challenges are confronting the country, such as insecurity, asset vandalisation and community unrest. However, the Petroleum Industry Act is addressing them. He said the Nigeria Upstream Petroleum Regulatory Commission had fared well in fiscal terms. Still, it has to step up its game because, presently, it cannot unlock the gas industry’s potential.
“Gas has to be the main driver of our energy transition. The sanctity of contracts is another issue bedevilling the industry and hampering investors. The government should ensure that Nigeria becomes an investment destination. We can achieve this through the sanctity of contract, a virile fiscal and commercial framework to unlock its gas industry. We must unlock the supply side and create sustainable supply and demand that makes the gas sector work. Notwithstanding, there is a huge potential in the sector that the energy transition will create an avenue to achieve and drive the sector moving forward.”
According to the NGA president, capital and investment funds are attractive to places with prospects. In addition, stifled investment and harsh regulatory and unprotected legal environment will drive away investors. The NGA boss said the government needs to redefine policies to strengthen and ease the way of doing business. Furthermore, he noted that the recent Memorandum of Understanding signed by the Nigerian Content Development and Monitoring Board, Nigerian National Petroleum Company Limited and the IOCs to reduce project time is a healthy development for the industry.