Why Nigeria's focus on gas is crucial

Nigeria, the largest economy in Africa, is setting its sights on gas as a crucial driver for economic recovery. Ed Ubong, the President of the Nigerian Gas Association, emphasized the importance of continually driving the Decade of Gas initiative to establish gas as a mainstay in the country's economic landscape. Speaking at the Practical Nigerian Content event in Uyo, the capital of Akwa Ibom State, Ubong highlighted the progress made since the declaration of the Decade of Gas by President Buhari in Q1 of the previous year. Central to this progress was the passing of the Petroleum Industry Bill into the Petroleum Industry Act, which introduced a new regulatory agency specifically focused on gas. This regulatory framework provided clarity on gas taxes and laid a solid foundation for advancing Nigeria's gas industry. The establishment of the NNPC Limited and the developments around the Nigerian network code further reinforced the country's commitment to accelerating its gas resources. Additionally, significant investments, like the Dangote fertilizer plant, underscored Nigeria's commitment to utilizing gas as a key economic driver. Ubong stressed that the body language of the government has been encouraging, pointing to recent positive developments in the coal-mine oil and gas field in the North as a testament to Nigeria's growing focus on gas exploration and discovery. However, the key challenge lies in effectively utilizing the discovered gas resources. While there is a substantial demand for Nigerian gas both domestically and for export, optimal utilization is essential. Ubong emphasized the need to channel gas into power generation to address the country's energy deficit. Moreover, expanding gas delivery to homes through projects like 'gas to homes' for cooking gas will enhance affordability and accessibility. Establishing industrial clusters across various states in Nigeria to promote gas utilization in industries and households is crucial for driving economic growth. The transition from diesel to gas as a primary energy source for industries will not only boost efficiency but also impact gas pricing. Ubong acknowledged the concerns around gas pricing and highlighted the efforts of the Decade of Gas team to address issues such as multiple taxations in the gas value chain to make gas more affordable, especially for cooking gas. The goal is to create a steady market where willing sellers and buyers can engage in cost-effective transactions, ultimately working towards a fully deregulated gas market within the Decade of Gas timeline.