Lagos: The Federal Government has announced its intention to settle all outstanding debts owed to gas producers, including long-standing legacy debts. Mr. Abel Nse, Senior Technical Adviser to the Minister of Petroleum Resources (Gas), revealed this during a panel session organised by Sahara Group. The event, themed 'Harnessing Gas for Africa's Sustainable Future', aimed to foster dialogue around the continent's energy needs.
According to News Agency of Nigeria, Nse stated that President Bola Tinubu had instructed relevant ministries and agencies to prioritise resolving the debt issue. "The Federal Government is committed to gradually offsetting the outstanding debts," he said. Nse also mentioned that the government is addressing areas such as gas pricing, gas flare penalties, legacy debt, gas infrastructure, supply receivables, and LPG availability, to encourage upstream investment and drive sectoral progress. He highlighted the government's efforts to promote gas utilisation as part of its broader mandate to stimulate domestic commerce and industrialisation. "It's a wake-up call for Nigeria to optimise gas resources effectively," Nse added.
On gas flaring, Nse noted that no upstream operator wanted to tinker with the low incentive costs associated with gas flaring penalties. He mentioned that gas flaring in Nigeria has dropped to less than one per cent, a notable achievement, but added that the government cannot finance projects that are not bankable.
Mrs. Ijeoma Isichei, Head of Business Development (Gas) at Sahara Group, described gas as a sustainable and effective bridge fuel. She emphasised that gas utilisation promotes industrialisation, job creation, and economic growth while improving access to energy for underserved populations. Similarly, Mariah Lucciana-Gabriel, Head of Integrated Gas Ventures at Asharami Energy, echoed these sentiments, highlighting gas as a cleaner, sustainable energy source. She noted that Nigeria possesses commercial volumes of gas capable of supporting industrial development and stressed the importance of tailoring energy solutions to local realities.
Mr. Mobolaji Sumonu, Lead, Upstream at Fidelity Bank Plc, raised concerns about the limited investments in the gas sector, pointing out that many gas-related projects were not bankable, making it difficult for financial institutions to support them. He mentioned that insecurity, poor infrastructure, and lack of financing remain key challenges to gas development.
Mr. Adeola Yusuf, Lead at Platform Africa, expressed concerns about the strained relationship between operators and the media, calling for greater mutual understanding and collaboration. He also criticised the government's slow progress in addressing gas flaring and ensuring domestic access to gas, noting that about 80 per cent of Nigerian women still lack access to domestic gas. Yusuf urged the government to take gas flaring seriously and impose stricter penalties to avoid losing trillions of Naira in wasted resources.