By Yange Ikyaa
Oando PLC has called for a collaboration between the private and public sectors in order to unlock Nigeria’s gas potential that will guarantee smooth energy transition and sustainable economic development.
The Deputy Group Chief Executive Officer of Oando Plc, Omamofe Boyo, who made the call while delivering at the recently concluded Nigeria Oil and Gas (NOG) Energy Week in Abuja, also maintained that building Nigeria’s gas infrastructure would require between $15 billion and $20 billion.
Speaking on the theme: “Realizing Nigeria’s Gas Potential: A Private Sector Perspective,” Boyo stated that the government alone would be unable to realize this and the private sector would need to work with the government to deliver on the needed gas infrastructure in the country.
Boyo further shared his views on the utilization 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.
He highlighted that Nigeria started a system whereby competing fuels were subsidized, which prevented the market from growing independently. Additionally, Nigeria emphasized earning foreign currency from gas exportation rather than utilizing it domestically.
According to him, ‘the investment and emphasis were put on oil rather than gas, which resulted in the infrastructure carrying oil being prioritized’.
The Oando top official proposed a holistic approach to increasing local consumption and investment in gas, which requires a level playing field and adequate regulatory capacity.
Boyo concluded that Nigeria needs to prioritize 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, as well as other energy enthusiasts, were present during Boyo’s presentation at the conference.