The Federal Government of Nigeria has announced a payment to gas suppliers of more than $120 million in an effort to stimulate the nation's energy sector, a major step towards increasing gas output in the country.
Director of the Decade of Gas Secretariat, Ed. Ubong made this news during Thursday's 7th Edition of the Nigeria International Energy Summit (NIES 2024).
During the summit, Ubong gave a speech titled "From Blueprint to Reality: Navigating Nigeria’s Gas Decade and Balanced Narrative on Energy Transitions," in which he emphasised the government's resolve to lowering the amount of unpaid debt to gas producers.
By 2023, there will be about $1.3 billion in arrears; the recent payments are a proactive move towards paying these off.
Ubong also stressed the importance of finishing the OB3 gas pipeline project while outlining the government's plan to pay off the remaining debt burden.
When this pipeline is fully operational, it will be able to access enormous gas reserves, believed to be between 300 and 600 million tonnes.
These reserves will then be easily integrated into the network of the Ajeokuta-Kaduna-Kano (AKK) Gas Pipeline.
Ubong stated the Secretariat's dedication to involving interns and young professionals, urging them to contribute their knowledge towards accomplishing more general sectoral objectives in an effort to bolster the workforce in the gas industry.
The Nigerian Gas Association (NGA) President, Akachukwu Nwokedi, expressed worries, nevertheless, about the detrimental implications of certain taxes, levies, and regulatory policies on commercial activities within the industry.
Nwokedi underlined how critical it is that the government harmonise and streamline tax laws in order to spur economic expansion and draw in foreign capital.
The announcement comes in the wake of challenges faced by the Transmission Company of Nigeria (TCN), which cited constraints in gas supply as a primary factor contributing to low levels of power generation and distribution across the country.
Ubong stated the Secretariat's dedication to involving interns and young professionals, urging them to contribute their knowledge towards accomplishing more general sectoral objectives in an effort to bolster the workforce in the gas industry.
The Nigerian Gas Association (NGA) President, Akachukwu Nwokedi, expressed worries, nevertheless, about the detrimental implications of certain taxes, levies, and regulatory policies on commercial activities within the industry.
Nwokedi underlined how critical it is that the government harmonise and streamline tax laws in order to spur economic expansion and draw in foreign capital.
The announcement comes in the wake of challenges faced by the Transmission Company of Nigeria (TCN), which cited constraints in gas supply as a primary factor contributing to low levels of power generation and distribution across the country.
Despite these challenges, TCN remains steadfast in its efforts to uphold grid integrity and ensure uninterrupted power transmission.
As Nigeria charts its course towards energy sufficiency and economic prosperity, initiatives such as these underscore the government's commitment to fostering a conducive environment for sustainable growth and development in the energy sector.
As Nigeria charts its course towards energy sufficiency and economic prosperity, initiatives such as these underscore the government's commitment to fostering a conducive environment for sustainable growth and development in the energy sector.
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