The Nigeria Extractive Industries Transparency Initiative (NEITI) has said that Nigeria requires about $20 billion in annual investments to achieve the desired gas expansion projects in the nation.
Executive Secretary of NEITI, Orji Ogbonnaya, disclosed this in his address at the Decade of Gas Action Plan Dialogue, organised by the African Initiative for Transparency, Accountability and Responsible Leadership, held in Abuja.
He noted that for the gas utilisation policy of the federal government to work, there has to be a compelling need for deliberate, ambitious investment in gas infrastructure.
“The network code provides a framework through third-party access to resolve some of the connectivity issues, but to a large extent, achieving the desired gas expansion will require an estimated $20 billion annually to bridge Nigeria’s gas infrastructure.
“Given the shrinking fossil fuel investment landscape, clarity is required of the infrastructure to be prioritized,” he stated.
Orji further stated that the agency’s estimate of over 200 trillion cubic feet of gas reserves in the country is consistent with the provisions of the Petroleum Industry Act passed in 2021 and that Nigeria has the largest gas reserves in Africa and the ninth-largest globally
“The Petroleum Industry Act provided the most significant progress for the gas sector in strengthening governance and providing fiscal frameworks for the sector’s growth.
“We call on the government to urgently put a national gas utilisation policy in place. Such policy needs to be clear on the specific roles of the industry, government, and investors in implementing the plan.
“Similarly, the gas utilisation plan should show the market-driven opportunities that would successfully translate the gas plans into sustainable economic development. NEITI recommends a costed plan with realistic targets that is easy to implement.”
