Oando PLC has called for a collaboration between the private and public sectors to unlock Nigeria’s gas potential that will guarantee a smooth energy transition and sustainable economic development.
Omamofe Boyo, the Deputy Group Chief Executive of Oando Plc, made the call while delivering a speech on “Realising Nigeria’s Gas Potential: A Private Sector Perspective” at the just concluded NOG Energy Week in Abuja.
Boyo shared his views on the utilisation of gas for domestic consumption in Nigeria, stating that although the country has been down this road for over 30 years, it has yet to utilise gas for domestic consumption for a variety of reasons.
Boyo highlighted that Nigeria started a system whereby competing fuels were subsidised, which prevented the market from growing independently. Additionally, Nigeria emphasised earning foreign currency from gas exports rather than utilising it domestically.
According to him, “The investment and emphasis were put on oil rather than gas, which resulted in the infrastructure carrying oil being prioritised’.
Boyo proposed a holistic approach to increasing local consumption and investment in gas, which requires a level playing field and adequate regulatory capacity.
He stated that building Nigeria’s gas infrastructure would require between $15bn-$20bn, and Government alone would be unable to realise this. The private sector would need to work with the Government to deliver on this.
Boyo concluded that 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.
Industry leaders such as Mele Kolo Kyari, Group Chief Executive Officer of NNPC Limited, Ambassador Gabriel Aduda, Permanent Secretary of the Ministry of Petroleum Resources, Federal Republic of Nigeria, as well as other energy enthusiasts, were present during Boyo’s presentation at the conference.