Mohammed Shosanya
The Nigerian Gas Association,NGA has advised the Federal Government to prioritize gas and capitalize on the abundant gas reserves in Nigeria.
The group said the development was necessary in view of the country’s participation in the Decade of Gas and the global energy transition.
The group gave the advice when its executive members visited the Special Adviser (SA) to the President on Energy, Mrs. Olu Verheijen and congratulated her on her appointment.
The group expressed its utmost confidence that her wealth of experience and dedication to the gas industry would pave the way for positive policy directions and substantial growth in the energy sector, particularly within the gas industry.
It commended the Federal Government for several commendable initiatives, including licensing 42 companies under the Nigerian Gas Flare Commercialisation Program, expanding the gas aggregation space, establishing the Presidential Compressed Natural Gas Initiative, and the substantial energy investment commitment with major oil and gas companies operating in Nigeria. All steps in the right direction.
Acknowledging government efforts, the NGA highlighted several critical challenges plaguing the industry that need urgent attention, such as gas supply issues, the absence of a commercial and fiscal framework to stimulate investment in the sector, ageing gas infrastructure, security concerns, multiple taxation hurdles, VAT on autogas-related equipment and transactions, lack of public awareness regarding the benefits of switching to gas, and the dollarisation of levies and taxes.
The NGA sought the support of the Special Adviser on Energy in addressing these challenges and proposes enhanced special security measures around pipeline assets to ensure consistent gas supply,sreamlining taxes and levies with government initiatives, including reviewing the PIA’s provisions that impact the ease of doing business in the sector.
The group also advocated strong focus on deepwater and offshore gas development to unlock Nigeria’s abundant gas reserves and ensure sustainable gas supply for export and domestic use as well as involvement of the NGA as a resource group for industry input in formulating policy and regulatory direction.