Before Nigeria can fully exploit its gas potential, there is a need for the public-private sector to inject between $15 billion – $20 billion on infrastructure.
The Deputy Group Chief Executive of Oando Plc, Omamofe Boyo disclosed this at the just concluded NOG Energy Week in Abuja, said there was need for collaboration between the private and public sectors in order to meet the huge investment capital.
Boyo said collaboration between the private and public sectors would help unlock the gas potential that would guarantee smooth energy transition and sustainable economic development in the country.
Sharing his views on gas utilisation for domestic consumption in Nigeria, he stated that although the country has been down this road for over 30 years, it is yet to optimally utilise gas for domestic consumption owing to various reasons.
Boyo said that Nigeria started a system whereby competing fuels were subsidised, which prevented the market from growing independently. Additionally, it emphasised earning foreign currency from gas exportation rather than utilising it domestically.
Also, he said that, ‘the investment and emphasis were put on oil rather than gas, which resulted in the oil infrastructure being prioritised’.
Boyo therefore proposed a holistic approach to increasing local consumption and investment in gas, which, he said, requires a level playing field and adequate regulatory capacity.
He stated that building Nigeria’s gas infrastructure would require between $15 billion – $20 billion, and the government alone would be unable to realise this, he said the private sector would need to work with the government to actualise the required investment.
According to Boyo, Nigeria needs to prioritise harnessing its gas resources and ensure an enabling environment with clearly defined opportunities for the private sector to fund and work in partnership with the government.Follow us on social media