The Executive Secretary, Nigeria Extractive Industries Transparency Initiative (NEITI), Dr Orji Ogbonnaya has said Nigeria would require an estimated $20bn annual investment in gas infrastructure to boost expansion.
Such infrastructure, he said, would include specific connectivity across upstream facilities to processing, power plants, and other end uses.
The Executive Secretary made the disclosure while making his presentation at a policy dialogue on Nigeria’s decade of gas action plan organized by the African Initiative for Transparency, Accountability and Responsible Leadership (AfriTAL) and the Natural Resource Governance Institute (NRGI) in Abuja.
In his presentation, he stressed the need for the government to urgently put in place a national gas utilization policy that would be clear on the specific roles of the industry, government, and investors.
“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,” he said.
While making reference to the shrinking investment in fossil fuel, Ogbonnaya said there was a need for clarity regarding the infrastructure to be prioritised.
Also, he noted that the Petroleum Industry Act’s (PIA) Midstream and Downstream Infrastructure Fund (MDIF) provides an avenue to fund the gas infrastructure “if a robust transparency mechanism can be implemented to monitor the process closely”.
“This Policy advisory recommends a strong team of experts to assess the opportunities available within the gas sector to boost the economy and achieve energy access.
“The right policy and politics will send strong positive signals to investors to move into the gas sector.”
Earlier, the Executive Director AfriTAL Dr Louis Ogbeifu in his address said if government’s intention at achieving energy accessibility, affordability, and sustainability as stated in the 2021-2030 “Decade of Gas Action Plan (DofG)” is effectively implemented, Nigeria is expected to witness a vast gas infrastructural development during the period.
He noted that although countries are abandoning fossil fuels as a significant energy source, Nigeria would need to increase its crude oil production in the short run beyond the current level to have money to diversify and invest in other alternative sources.
“Even in the medium- and long-term periods, natural gas,which Nigeria has in abundance, which has been described as cleaner than coal or petroleum is also within the fossil fuel family. This means that walking off fossil fuel for Nigeria is not immediately foreseeable,” he added.
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