The Federal Government says Nigeria is open to responsible gas investments and is working to create a conducive business environment for investors.
Jide Fashetire, Founder of City Mechanic, sets up a gas bottle in a mini bus to convert it to gas combustion in City Mechanic, a Compressed Natural Gas (CNG) center Lagos, on November 12, 2024. (Photo by OLYMPIA DE MAISMONT / AFP)
The Federal Government says the country is willing to open its gas fields for meaningful investments as it continues in its bid to expand national gas consumption and bridge the gap between resources and the industries, power plants, businesses and households that need them.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed in his speech at the Association of Energy Correspondents of Nigeria (NAEC) Conference on Thursday, where he spoke on the theme ‘Access To Asset: Empowering Players & Driving Growth’.
According to the Minister, the Federal Government has continued to prioritise critical gas infrastructure projects such as the AKK and OB3 Gas Pipelines, which are critical to strengthening the national gas network and connecting supply with major demand centres, to encourage more investments.
Ekpo also noted that the government was also focused on enabling a conducive business atmosphere for investments.
“We are also focused on creating a more attractive environment for investment. The reforms introduced under the Petroleum Industry Act 2021, together with targeted fiscal and regulatory measures for gas development, are intended to improve competitiveness, reduce barriers and enhance project bankability,” the minister said. “Our message to credible investors is clear: Nigeria is open for responsible investment in its gas sector.”
He explained that FG realises the importance of collaborations with other stakeholders in terms of capital, technology and other resources.
“We recognise that government cannot develop the sector alone. We need the capital, technology, expertise and commercial discipline of the private sector.
“We also need stronger collaboration among regulators, financial institutions, development partners and industry players to ensure that viable gas projects can move from concept to final investment decision and, ultimately, production.”
Ekpo noted that investments are not expected from just foreigners but also from local players.
“Importantly, the opportunities created by our gas resources must not be limited to a few large players. We want to see greater participation by indigenous companies, independent producers, infrastructure developers, technology providers and emerging energy businesses.
“Empowering more capable Nigerian players will deepen competition, strengthen local capacity and ensure that a greater share of the value created within the energy sector remains in the Nigerian economy,” Ekpo said.
He emphasised that another major goal of the Federal Government was to improve gas utilisation nationwide, especially through the Compressed Natural Gas (CNG) initiative.
The Minister also added that the gains of gas resources must translate to economic wealth for the masses. Our objective is also to maximise domestic gas utilisation. We must increasingly convert our gas resources into value-added products rather than viewing gas solely as a commodity for export.
